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Starbucks Kicks Off 2025 With $9.4B In Revenue Amid Turnaround Efforts

Global coffee giant Starbucks Corp. reported $9.4 billion in consolidated net revenues for the first quarter of its 2025 fiscal year, reflecting steady performance despite ongoing challenges.

Financial Performance

Starbucks’ total revenue for the quarter ending December 29, 2024, remained flat compared to the same period last year, even when adjusted for currency fluctuations, according to its earnings report released Tuesday.

Globally, comparable store sales slipped 4%, primarily due to a 6% drop in transactions. However, the decline was somewhat cushioned by a 3% increase in the average ticket size.

In North America, the company’s largest market, net revenues declined 1% year-over-year to $7.1 billion. Operating income in the region saw a sharper drop, plunging 22% to $1.2 billion. The revenue dip was attributed to a 4% decline in comparable store sales, which stemmed from an 8% fall in transactions, partially offset by a 4% rise in average ticket value. Starbucks also faced headwinds in its licensed store business, further impacting revenue.

Internationally, the company fared slightly better. Net revenues outside North America edged up 1% year-over-year to $1.9 billion. However, a 4% decrease in comparable store sales—driven by a 2% drop in both average tickets and transactions—partially offset these gains. Operating income from international markets also dipped 2% to $237.1 million compared to the same quarter last year.

Leadership Insights

Despite the challenges, Starbucks executives remain optimistic.

“We’re just one quarter into our turnaround, but we’re moving fast with our ‘Back to Starbucks’ initiatives, and the response has been encouraging,” said Starbucks Chairman and CEO Brian Niccol.

Chief Financial Officer Rachel Ruggeri echoed the sentiment, emphasizing the company’s commitment to shareholder value. “We’re in the early stages of our transformation, but we’ll continue to prioritize dividends, ensuring a consistent return of capital as we drive the business forward.”

Market Reaction And Rankings

Investor sentiment remained steady, with Starbucks shares inching up 0.4% to close at $100.8 in after-hours trading on Tuesday.

Starbucks holds the 319th spot on Forbes’ 2024 Global 2000 list, while its former CEO and notable stakeholder Howard Schultz ranks 999th on Forbes’ Real-Time Billionaires list, with a net worth of $3.4 billion as of January 29, 2025.

As the company navigates its turnaround, all eyes will be on Starbucks’ ability to reignite growth and maintain its position as a dominant force in the coffee industry.

EU Moderates Emissions While Sustaining Economic Momentum

The European Union witnessed a modest decline in greenhouse gas emissions in the second quarter of 2025, as reported by Eurostat. Emissions across the EU registered at 772 million tonnes of CO₂-equivalents, marking a 0.4 percent reduction from 775 million tonnes in the same period of 2024. Concurrently, the EU’s gross domestic product rose by 1.3 percent, reinforcing the ongoing decoupling between economic growth and environmental impact.

Sector-By-Sector Performance

Within the broader statistics on emissions by economic activity, the energy sector—specifically electricity, gas, steam, and air conditioning supply—experienced the most significant drop, declining by 2.9 percent. In comparison, the manufacturing sector and transportation and storage both achieved a 0.4 percent reduction. However, household emissions bucked the trend, increasing by 1.0 percent over the same period.

National Highlights And Notable Exceptions

Among EU member states, 12 reported a reduction in emissions, while 14 saw increases, and Estonia’s figures remained static. Notably, Slovenia, the Netherlands, and Finland recorded the most pronounced declines at 8.6 percent, 5.9 percent, and 4.2 percent respectively. Of the 12 countries reducing emissions, three—Finland, Germany, and Luxembourg—also experienced a contraction in GDP growth.

Dual Achievement: Environmental And Economic Goals

In an encouraging development, nine member states, including Cyprus, managed to lower their emissions while maintaining economic expansion. This dual achievement—reducing environmental impact while fostering economic activity—is a trend that has increasingly influenced EU climate policies. Other nations that successfully balanced these outcomes include Austria, Denmark, France, Italy, the Netherlands, Romania, Slovenia, and Sweden.

Conclusion

As the EU continues to navigate its climate commitments, these quarterly insights underscore a gradual yet significant shift toward balancing emissions reductions with robust economic growth. The evolving landscape highlights the critical need for sustainable strategies that not only mitigate environmental risks but also invigorate economic resilience.

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