Starbucks' (SBUX) consolidated net revenues for Q1 2025 were $9,397.8 million, reflecting a slight decline of 0.3% compared to $9,425.3 million in Q1 2024. This was primarily driven by a 4% decline in global comparable store sales, which was offset by incremental revenues from new company-operated store openings over the past 12 months.

Operating income for Q1 2025 was $1,121.7 million, a significant decrease of 24.5% compared to $1,485.4 million in Q1 2024. The operating margin contracted by 390 basis points to 11.9%, primarily due to deleverage, investments in store partner wages, benefits, and hours, and the removal of the extra charge for non-dairy milk customizations. These were partially offset by pricing adjustments and supply chain efficiencies.

Net earnings attributable to Starbucks for Q1 2025 were $780.8 million, down 23.8% from $1,024.4 million in Q1 2024. Earnings per share (EPS) also declined from $0.90 to $0.69, reflecting the lower profitability during the quarter.

North America segment revenues decreased by 1% to $7,071.9 million in Q1 2025, primarily due to a 4% decline in comparable store sales, driven by an 8% decrease in transactions, partially offset by a 4% increase in average ticket size. Operating income for the segment fell by 22% to $1,181.3 million, with the operating margin contracting by 470 basis points to 16.7% due to deleverage and increased investments in wages and benefits.

International segment revenues increased by 1% to $1,871.3 million in Q1 2025, driven by net new company-operated store growth of 9% and the conversion of 113 licensed stores to company-operated stores. However, comparable store sales declined by 4%, and operating income decreased slightly to $237.1 million, with the operating margin contracting by 40 basis points to 12.7% due to higher promotional activity and wage investments.

Channel Development segment revenues declined by 3% to $436.3 million in Q1 2025, primarily due to lower revenues in the Global Coffee Alliance and the global ready-to-drink business. Operating income for the segment decreased slightly to $208.0 million, but the operating margin expanded by 90 basis points to 47.7%, driven by mix shifts and lower product costs.

Corporate and Other operating loss increased by 4% to $504.7 million in Q1 2025, primarily due to higher costs associated with leadership transitions and incremental investments in technology.

Cash flows from operating activities were $2.1 billion in Q1 2025, down from $2.4 billion in Q1 2024. The decline was primarily due to a decrease in net earnings and an increase in inventories. Net cash used in investing activities rose to $855 million, driven by the acquisition of 23.5 Degrees Topco Limited and higher capital expenditures. Net cash used in financing activities decreased significantly to $755 million, primarily due to the absence of share repurchases and long-term debt repayments during the quarter.

Starbucks' "Back to Starbucks" plan was a key focus during Q1 2025, with strategic actions aimed at improving operational efficiencies and supporting store partners. Despite the challenges, the company emphasized disciplined investments to enhance customer experience and reestablish its position as a community coffeehouse.