SBUX Q4 Earnings Sees First Global Comp Growth in Seven Quarters

Starbucks Corporation SBUX marked a key inflection point in its turnaround journey, reporting the first global comparable store sales growth in seven quarters in fiscal fourth-quarter 2025. The company’s revenues rose 5% year over year to $9.6 billion, though earnings per share of 52 cents missed the Zacks Consensus Estimate of 55 cents due to ongoing strategic investments.

The highlight of the quarter was a 1% rise in global comparable sales, led by a 3% increase internationally and a steady recovery in North America. U.S. comps were flat, but transaction trends improved sequentially, signaling that the “Back to Starbucks” strategy is gaining traction. The Green Apron Service initiative, aimed at improving staffing, customer connection and service speed, has already driven stronger partner engagement and customer satisfaction. In September, U.S. sales comps turned positive for the first time since 2023, driven by higher transactions.

International markets continued to demonstrate brand resilience, with China delivering 2% comp growth on the back of 9% higher transactions, while Japan, the United Kingdom and Mexico also posted positive momentum. Starbucks’ delivery channel surged nearly 30% year over year, surpassing $1 billion in U.S. sales for the fiscal year.

Management emphasized that the focus remains on strengthening the coffeehouse experience rather than short-term profit gains. CEO Brian Niccol underscored that the turnaround is taking hold as investments in service, staffing and store redesign begin to show tangible results. CFO Cathy Smith added that cost streamlining and disciplined capital allocation should gradually lift margins in fiscal 2026.

Overall, Starbucks’ fourth-quarter fiscal 2024 results indicate early signs of recovery, a blend of operational discipline, brand renewal and customer-centric innovation setting the stage for sustainable long-term growth.

SBUX’s Zacks Rank

Starbucks currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the Zacks Retail-Wholesale sector are Red Robin Gourmet Burgers, Inc. RRGB, Dutch Bros Inc. BROS and First Watch Restaurant Group, Inc. FWRG.

Red Robin currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Red Robin has gained 22.2% in the year-to-date period. The Zacks Consensus Estimate for Red Robin's fiscal 2025 sales indicates a decline of 2.8% year over year, while EPS implies a rise of 82% from the year-ago period’s levels.

Dutch Bros presently carries a Zacks Rank #2 (Buy). The stock has gained 10.4% in the year-to-date period.

The Zacks Consensus Estimate for BROS’ 2026 sales and EPS implies growth of 23.8% and 29.7%, respectively, from the year-ago levels.

First Watch Restaurant presently carries a Zacks Rank #2. The stock has declined 8.3% in the year-to-date period.

The Zacks Consensus Estimate for First Watch Restaurant’s 2026 sales and EPS indicate an increase of 14.8% and 108.3%, respectively, from the year-ago levels.

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This article originally published on Zacks Investment Research (zacks.com).

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