Starbucks’ quarterly profits surge, marking milestone in revival plan
The Seattle Times • • business
Key Points:
- Starbucks reported strong Q2 results with sales of $9.5 billion, up nearly 9% year-over-year, and profits of $511 million, a 33% increase, beating investor expectations and boosting shares by 7% in after-hours trading.
- CEO Brian Niccol credited the "Back to Starbucks" turnaround plan, focusing on enhancing the traditional coffeehouse experience, improving store operations, reducing wait times, and introducing new employee incentives.
- The company opened 11 net new stores in Q2, totaling about 41,000 locations, and plans to add 150 to 175 new U.S. stores in 2025, aiming for long-term growth targets including 5%+ revenue growth and over 2,000 net new stores by 2028.
- Starbucks is expanding its corporate presence with a new southern office in Nashville but confirmed it will keep its headquarters in Seattle, despite some layoffs and store closures amid ongoing union tensions.
- The company highlighted growth opportunities in China through a joint venture with Boyu Capital targeting expansion to 20,000 stores, while its loyalty program and marketing efforts are driving increased brand affinity, especially among Gen Z and millennials.
