Starbucks Corporation (SBUX)

The past six months have seen Starbucks' stock price impacted by its fiscal year 2025 earnings reports and strategic initiatives. In Q1 Fiscal Year 2025, Starbucks reported consolidated net revenues of $9.4 billion and an EPS of $0.69. Global comparable store sales declined by 4%. The Q2 Fiscal Year 2025 results further impacted the stock, with Starbucks reporting revenue of $8.8 billion and an EPS of $0.41. Global comparable store sales declined by 1%. In February 2025, Starbucks announced a corporate restructuring that included laying off 1,100 corporate employees to increase operational efficiency. The stock has shown some rebound from April lows, but analysts remain cautious due to competition and the pace of recovery in key markets like China.

Starbucks experiences demand seasonality, with seasonal and limited-time offerings playing a significant role in driving sales. The annual fall launch of the Pumpkin Spice Latte (PSL) has historically contributed to record-breaking average weekly sales and significant increases in foot traffic. Starbucks introduces approximately 12-15 seasonal beverages annually, with the PSL alone generating over $110 million in sales each fall season. The company also rolls out holiday-themed beverages and food items, which contribute to seasonal demand. Starbucks actively manages this by introducing new products to maintain customer interest throughout the year.

Starbucks Corporation is a global leader in the coffeehouse industry, operating as a roaster, marketer, and retailer of specialty coffee worldwide. Starbucks' core business involves purchasing, roasting, and selling high-quality coffees, along with handcrafted beverages and various food items through its company-operated and licensed stores. The company falls under the Consumer Discretionary sector and the Restaurants industry. Its extensive product portfolio includes a wide array of coffee and tea products, as well as baked goods, sandwiches, and other food items. Key brands under the Starbucks umbrella include Starbucks Coffee, Teavana, Ethos, Starbucks Reserve, Seattle's Best Coffee, and Evolution Fresh.

Starbucks has a significant global presence, with over 38,000 stores operating across more than 80 countries as of mid-2024. Its operations are segmented into North America, International, and Channel Development. The United States accounts for approximately 41% of its global stores, while international markets represent 42% and China 17% as of Q4 2023.

Starbucks' brand reputation has declined in the past year, with its RepTrak score dropping from 71.5 points in 2021 to 57.7 points in January 2025. Starbucks' ranking also dropped in Interbrand's top 100 global brand ranking and significantly in the Brand Finance report. CEO Brian Niccol is focused on a "Back to Starbucks" strategy to restore goodwill and improve the brand's standing by prioritizing customer experience, streamlining operations, and refocusing on its identity as a coffee company.

Starbucks is a publicly traded company primarily owned by its shareholders, with institutional investors holding a significant majority (approximately 76% in mid-2024). Major institutional owners include The Vanguard Group, BlackRock, Inc., and State Street Corporation. Major individual owners include Howard Schultz, Mellody L. Hobson, Michael Aaron Conway, and Rachel Ruggeri.