Latest news with #Cortado
Yahoo
13-05-2025
- Business
- Yahoo
SBUX Q1 Earnings Call: Turnaround Efforts Prioritized as Sales Miss Expectations
Coffeehouse chain Starbucks (NASDAQ:SBUX) missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 2.3% year on year to $8.76 billion. Its non-GAAP profit of $0.41 per share was 15.2% below analysts' consensus estimates. Is now the time to buy SBUX? Find out in our full research report (it's free). Revenue: $8.76 billion vs analyst estimates of $8.82 billion (2.3% year-on-year growth, 0.6% miss) Adjusted EPS: $0.41 vs analyst expectations of $0.48 (15.2% miss) Adjusted EBITDA: $1.14 billion vs analyst estimates of $1.23 billion (13% margin, 7.7% miss) Operating Margin: 6.9%, down from 12.8% in the same quarter last year Free Cash Flow was -$297.2 million compared to -$153.1 million in the same quarter last year Locations: 40,789 at quarter end, up from 38,951 in the same quarter last year Same-Store Sales fell 1% year on year (-4% in the same quarter last year) Market Capitalization: $97.36 billion Starbucks' first quarter results reflected ongoing challenges as the company reported revenue and profit below Wall Street expectations. Management attributed performance to continued investments in its "Back to Starbucks" turnaround plan, which focuses on improving store operations, enhancing the customer experience, and resetting the cost structure. CEO Brian Niccol noted that early signs of progress are visible, particularly in North America, but acknowledged that financial performance remains below the company's potential at this stage of the turnaround. Looking ahead, Starbucks leadership emphasized patience, stating that the turnaround will take time to fully translate into improved financial outcomes. CFO Cathy Smith highlighted a focus on disciplined investment and cost management, with an intention to balance near-term operational challenges with long-term growth opportunities. Management refrained from providing detailed financial guidance, citing the ongoing nature of strategic changes and the need for further progress before offering a more specific outlook. Management highlighted several company-specific operational and strategic initiatives that shaped the quarter's results and are intended to drive longer-term improvements. Key themes included operational resets, labor investments, market-specific adjustments, and a renewed focus on customer experience. Labor Investment and Service Model: Starbucks prioritized investing in store labor and a new "green apron" service model over equipment upgrades, targeting improved throughput, customer connection, and transaction growth. This approach was piloted in hundreds of stores and is being scaled nationwide. Menu Simplification and Innovation: The company continued to simplify its menu, removing slower-selling items to focus on core coffee offerings and new platforms such as the Cortado and matcha beverages. These changes are designed to enable more impactful product innovation and operational efficiency. Store Portfolio and Cost Reset: Management acknowledged rising costs in new store builds and renovations and is temporarily slowing unit growth to focus on reducing build costs and improving store economics before ramping expansion. Marketing and Brand Repositioning: A multi-channel brand campaign and menu innovation drove higher engagement, especially among non-loyalty customers. Management pointed to improvements in brand perception and customer preference as evidence of early impact. International Market Adjustments: The company cited positive comp sales in eight of its top ten international markets, with tailored product launches and local marketing, particularly in Canada, the UK, Japan, and China, supporting recovery and growth. Starbucks' outlook centers on scaling operational changes, managing cost headwinds, and adapting to consumer sentiment, with management focused on long-term growth and margin recovery as the turnaround progresses. Operational Efficiency Initiatives: The rollout of new labor models, order sequencing technology, and menu simplification is expected to gradually improve transaction trends and customer satisfaction as these programs reach more stores. Margin Pressures and Cost Management: Margin recovery will depend on balancing increased labor investments with reductions in store build costs, supply chain adjustments due to tariffs, and the impact of commodity prices, particularly coffee. Consumer and Market Dynamics: Management cited uncertainty in consumer demand and macroeconomic conditions as ongoing risks, but believes that store experience improvements and targeted marketing can help offset external headwinds. David Palmer (Evercore ISI): Asked how shifting from equipment investment to labor and technology would impact store-level costs and rollout speed. Management confirmed the approach allows for faster deployment with cost discipline, but said it was too early to quantify the financial impact. Sara Senatore (Bank of America): Questioned whether labor investments would permanently alter store economics and margin profile. CEO Brian Niccol stated the strategy aims for higher-quality, non-discount-driven transactions and expects margins to recover as growth returns. David Tarantino (Baird): Sought clarity on the store portfolio review and pace of new unit growth. Management explained that store openings would slow temporarily while design and cost resets are implemented, with expansion to accelerate later. Brian Harbour (Morgan Stanley): Asked if menu simplification impacted transactions and how innovation would be sequenced. Management reported improved transaction comps in more stores and described a structured process for introducing new items to ensure operational fit and customer relevance. Christine Cho (Goldman Sachs): Inquired about early results from the order sequencing algorithm for mobile and in-store orders. Starbucks cited reduced wait times and improved partner experience in pilot stores, supporting broader rollout. In the coming quarters, the StockStory team will be closely monitoring (1) the nationwide rollout and operational impact of the green apron service model and order sequencing technology, (2) evidence of margin stabilization as labor investments are scaled and store build costs are reset, and (3) transaction and comp sales trends in key geographies, especially North America and China. The pace and effectiveness of menu innovation and marketing efforts will also be important indicators of progress. Starbucks currently trades at a forward P/E ratio of 27.2×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
What's On
21-04-2025
- Business
- What's On
5 great cafes for remote work in Abu Dhabi
Let these be your office for the day… Good weather, bad weather, rain, shine. There's never a bad time to find yourself a remote working spot – if you're permitted to do so, of course. Here's are 5 great cafes for remote work in Abu Dhabi. The Lighthouse Restaurant & Bar This exciting Mediterranean concept lines the Yas waterfront and has been described as a gathering point for members of the region's creative community. Sounds like a wonderful remote working arrangement. The Lighthouse Restaurant & Bar, Yas Bay, Yas Island, Abu Dhabi, Monday to Friday 8am to 12am, Sat and Sun 8am to 1am. Tel: (0)2 236 7831, @thelighthouse_abudhabi tashas Al Bateen With strong Insta-feed energy, this concept originated in South Africa, but is well-established as a part of the local fabric here. Sublime interiors and a kitchen team with a fastidious eye for gastronomic detail helped make this eatery an essential pin-drop for those that enjoy crafty cuisine with their coffee. In a sentence, good food, great coffee and nice aesthetics make this a solid remote working spot. tashas, Unit B02 Cafe, Marsa Al Bateen, Abu Dhabi, Mon to Sat 8am to midnight, Sundays 8am to 11pm. Tel: (0)2 445 0890. @tashascafe % Arabica With a recent opening at Zayed International Airport, this Japanese specialty coffee brand is part of an impressive line up of restaurants and hospitality concepts in the capital. A solid Arabica blend powers their brews across numerous locations in Abu Dhabi, and irrespective of what time of day it is, this is a great spot to get caffeinated, dial in and get some great work done at. % Arabica, various locations, Abu Dhabi. Tel: (0)2 493 7400. % Art House Cafe View this post on Instagram A post shared by Art House Café (@arthousecafead) Another colourful addition to Al Bateen's caffeine scene, is Art House Café. Every inch feels, and smells like the inspirational, creative space it truly is, surrounded by botanical greens and abstract painted scenes. There's art lining the walls, art on the plates, and artistry taking place on the coffee front, with their impressive array of iced and hot beverages. Make sure you order the Spanish-born Cortado – equal parts espresso and steamed milk – to ease you into the morning. Art House Cafe, Al Bateen, Abu Dhabi, 9am to 11pm daily. Tel:(0)2 666 9175 @arthousecafead DRVN Fuelled by the owner's passion for exotic and classic cars, DRVN Café is a homegrown concept with stylish, automotive-themed branding backing a great selection of coffee blends, Neapolitan pizza and other creations. Also, watch out for their food trucks at prominent festivals around town. When you've gotten some work done and feel like taking a break, browse their merch section as well, which is auto-inspired and available in cool, creative designs. DRVN, Al Rawdah, Abu Dhabi, 7am to midnight daily. Tel: (0) 2 441 7774. @
Axios
03-03-2025
- Business
- Axios
Starbucks spring menu coming Tuesday as 13 drinks removed
Starbucks launches its spring menu with new and returning limited-time drinks Tuesday — the same day the coffee giant removes 13 longtime items. Why it matters: The Seattle-based company, under CEO Brian Niccol, has been making a series of changes as part of its "Back to Starbucks" rollout to try to reverse a decline in foot traffic. The plan includes trimming "roughly 30%" of its menu items by the end of the 2025 fiscal year. The big picture: Even though Starbucks is making menu cuts, it is still adding new items as seasonal menu launches usually drive sales and attract customers. It added the Cortado in January and in February released limited-time drinks for Valentine's Day and Blackberry Sage Refreshers. "We're focusing on premium beverages rooted in customer trends and preferences," the company said. Starbucks spring menu 2025 includes lavender drinks Zoom in: Starbucks said Monday that it will release the new Iced Cherry Chai on Tuesday along with three returning lavender beverages. The company says the lavender drinks — Iced Lavender Cream Oatmilk Matcha, Iced Lavender Oatmilk Latte and Lavender Crème Frappuccino — "were extremely successful when they debuted last spring." Starbucks said the lavender cream cold foam contains dairy. Dig in: The Jalapeño Chicken Pocket joins Starbucks' permanent menu Tuesday. For a limited time, through April 1, customers can get one free packet of TRUFF Original or Jalapeño Lime Hot Sauce with any breakfast sandwich, breakfast wrap, egg bites, bakes, lunch sandwiches or pockets. A new blonde roast, Sunsera Blend, also launches Tuesday, and will be the hot brewed light roast coffee of the day. It will be sold as packaged coffee in Starbucks locations and grocery stores. Starbucks Iced Cherry Chai, seasonal cold foams The Iced Cherry Chai is Starbucks' first springtime chai beverage and the company has had seasonal iced chai drinks that include the Gingerbread Oatmilk Chai, Iced Pumpkin Cream Chai and Iced Apple Crisp Nondairy Cream Chai. The new drink includes the chain's classic iced chai latte topped with a new, seasonal cherry cream cold foam and a "sprinkle of crunchy topping." Starbucks said almost any beverage can be customized with the cherry cold foam and lavender cream cold foam. Kelly's taste test: Axios had an early taste of the Iced Cherry Chai before its nationwide release. The drink was sweet and smooth and I'm thinking of what drink to try the cherry cold foam on next. Starbucks removing 13 drinks: The list State of play: Starbucks starts its first round of menu cuts Tuesday. The list includes several Frappuccino blended beverages and items the company says "aren't commonly purchased, can be complex to make, or are like other beverages on our menu, Starbucks confirmed to Axios. The 13 drinks being cut are: Espresso Frappuccino Caffè Vanilla Frappuccino Java Chip Frappuccino White Chocolate Mocha Frappuccino Chai Crème Frappuccino Caramel Ribbon Crunch Crème Frappuccino Double Chocolaty Chip Crème Frappuccino Chocolate Cookie Crumble Crème Frappuccino White Chocolate Crème Frappuccino Iced Matcha Lemonade White Hot Chocolate Royal English Breakfast Latte Honey Almondmilk Flat White Starbucks menu changes: More items to be cut What's next: Additional beverages and food items will leave the menu "throughout the coming months," with the roughly 30% menu reduction happening by September 2025, the company has said. Starbucks said this will "make way for innovation." More from Axios: Dunkin' joins Starbucks in dropping nondairy milk fee Exclusive: Target to open Warby Parker shops in some stores Tooth fairy payouts drop to lowest rate in years
El Balad
01-03-2025
- Business
- El Balad
كبرت .. ابنة شيرين عبد الوهاب تظهر معها في إعلان رمضاني
NEW YORK — Starbucks is making cuts to its menu, with some of the coffee giant's 'less popular beverages' set to take their final bow this week. In its announcement, Starbucks outlined plans to remove a selection of its drinks — including several blended Frappuccino beverages, the Royal English Breakfast Latte and the White Hot Chocolate — starting Tuesday. Shoppers at Walden Galleria on Nov. 30, 2024, in Buffalo, N.Y., stop by the Starbucks kiosk. Gene J. Puskar, Associated Press 'These items aren't commonly purchased, can be complex to make, or are like other beverages on our menu,' Starbucks wrote. The Seattle-based company added that simplifying its menu would allow it to 'focus on fewer, more popular items, executed with excellence." Starbucks says these cuts will reduce wait times, improve consistency and 'make way for innovation.' The chain says it will continue to introduce a handful of new items and seasonal specials, such as its Cortado beverage introduced last month and a new 'Iced Cherry Chai' set to debut in the spring. The menu changes arrive amid wider restructuring at the Seattle-based company. Starbucks also said that it would lay off 1,100 corporate employees globally this week — with CEO Brian Niccol citing the need to 'operate more efficiently." Niccol joined the chain as CEO in August. Beyond next week's menu cuts, Starbucks said that more beverages and food will also exit its menu in the coming months — representing a roughly 30% reduction by the end of the 2025 fiscal year in the U.S. Here's a list of the drinks that are set to be removed Tuesday: 3. Caffè Vanilla Frappuccino 5. White Chocolate Mocha Frappuccino 6. Chai Crème Frappuccino 7. Caramel Ribbon Crunch Crème Frappuccino 8. Double Chocolaty Chip Crème Frappuccino 9. Chocolate Cookie Crumble Crème Frappuccino 10. White Chocolate Crème Frappuccino 12. Royal English Breakfast Latte 13. Honey Almondmilk Flat White It's no secret that things just keep getting more expensive. From home prices to personal goods, the cost of living in the U.S. has increased 22% since 2019, leaving consumers searching for ways to combat rising costs. As Americans scramble to find better ways to budget, one historically wallet-friendly option, fast food, is becoming less and less of a cost-saver. In fact, fast food price hikes have outpaced the national inflation rate in some instances, prompting backlash online and on social media. Have fast food prices really changed so dramatically? And if so, by how much? FinanceBuzz, is always looking for ways to save money and wanted to better understand how much a trip to the drive thru was really costing consumers. To find out, FinanceBuzz collected pricing data from a dozen popular fast food restaurants over the past decade and calculated how much prices have risen compared to the national inflation rate. FinanceBuzz How does fast food inflation compare to actual inflation? According to the Bureau of Labor Statistics, the cost of goods in the U.S. has risen 31% since 2014, meaning $100 in 2014 dollars is worth $131 in 2024 dollars. Much of this change has happened in the past 5 years — inflation is up 22% since 2019. So how do the average menu price increases at popular fast food chains compare to those rates? The restaurants FinanceBuzz evaluated raised prices by 60% on average between 2014 and 2024. That means they've raised prices at a rate nearly double the national rate of inflation. Five different restaurants — McDonald's, Popeyes, Taco Bell, Chipotle, and Jimmy John's — raised their prices at more than double the national inflation rate. McDonald's raised prices so much that their average menu prices increased more than three times the national rate of inflation. Beyond the golden arches, the data reveals more than a 75% price increase at Popeyes, Taco Bell, and Chipotle over the past 10 years. Subway and Starbucks, on the other hand, kept prices the most stable of any major chain, but still outpaced national inflation. Here are some notable examples. FinanceBuzz Gold-tier prices at the Golden Arches: McDonald's prices have risen the most The worst offender for dramatic price increases is McDonald's — a chain that recently went viral for all the wrong reasons. An $18 Big Mac combo garnered so much attention online that the McDonald's CEO promised affordability on a recent earnings call. According to our data, prices at McDonald's have doubled since 2014, with an average price increase of 100%. Overall, this rate is more than triple the national inflation rate during the same time. One illustrative example is the McChicken sandwich: once a staple of the chain's $1 menu in 2014, the sandwich now costs $3 at some locations, a 200% increase. Other former value menu items, like the McDouble and a simple order of medium fries were among the most egregious price increases across the McD's menu. What Rising Fast Food Prices Mean for Consumers Though incremental changes in fast food prices may not seem like the highest dollar-value changes to consumers' wallets, they are an illustrative example of a new financial reality in the U.S. — your dollar doesn't go as far as it used to and American families need to figure out how to make it work. Another place many Americans have been feeling the squeeze is with auto insurance. As premiums have risen more than 20% in the past year, many are scrambling to find cheaper car insurance options. And like with fast food, the premium hikes tend to hurt lower income earners the most. Some are turning to credit cards to make up the gap. After a few years of declining balances, credit card debt has climbed back to an all-time high. Cards that have balance transfer incentives and 0% intro APR offers look especially enticing to anyone who is trying to close a gap on their monthly budget or looking for debt relief. For others, there's no way to stretch more on their current income so they're turning to ways to make extra income on the weekends or find higher-paying jobs. With no easy solution and no relief in sight, inflation is likely to remain a top concern for Americans heading into this year's presidential election. In fact,a recent FinanceBuzz survey found that inflation is the top financial issue among American voters right now. Other notable fast-flation examples Taco Bell Average price increase: 81% 81% Notable price hikes: A Doritos Locos Taco went from an average price of $1.39 in 2014 to $2.59 in 2024 (+86%), while a Cheesy Gordita Crunch has doubled in price from $2.49 in 2014 to $4.99 today. The Beefy 5-Layer Burrito, which went from an average cost of $1.59 in 2014 to a present-day price of $3.69. That's a 132% increase. Chipotle Average price increase: 75% 75% Notable price hikes: In 2014, hungry customers could get an entree, such as a burrito, bowl, or tacos, for less than $6.75 on average. Those same meals all cost $10.50 or more today. And while guac has always cost extra, it costs 64% more now than it did 10 years ago ($1.80 to $2.95 on average). Starbucks Average price increase: 31% 31% Notable price hikes: Interesting, some beloved Starbucks menu items have kept pace with inflation, such as their Chai Tea Latte (+30%) and their Mocha Frappuccino (+32%). Even better for Starbucks fans and their wallets, costs for certain items such as a Caffè Latte (+22%) and Caramel Macchiato (+17%) have actually risen slower than inflation, which makes them a better deal now than they were a decade ago. Full results and methodology For a full methodology and a chart featuring all the data collected, please visit the full study. Easy ways to save on your next fast-food order Earn cash back and rewards. Learn about the best credit cards to use when dining out. These cards can help you earn cash back or discounts when going out for a meal. Learn about the best credit cards to use when dining out. These cards can help you earn cash back or discounts when going out for a meal. Download the mobile apps. Many fast food restaurants, including McDonald's, offer discounts and deals just for using their mobile app. Many fast food restaurants, including McDonald's, offer discounts and deals just for using their mobile app. Watch for upcoming deals. McDonald's is reportedly considering offering a $5 meal deal to win back consumers who are unhappy with rising prices. Look for other fast food chains to follow suit. This story was produced by FinanceBuzz and reviewed and distributed by Stacker Media. With our weekly newsletter packed with the latest in everything food.
Chicago Tribune
26-02-2025
- Business
- Chicago Tribune
Starbucks is cutting some ‘less popular' drinks from its menu. Here's what will be removed next week
NEW YORK — Starbucks is making cuts to its menu, with some of the coffee giant's 'less popular beverages' set to take their final bow next week. In an announcement Monday, Starbucks outlined plans to remove a selection of its drinks — including several blended Frappuccino beverages, the Royal English Breakfast Latte and the White Hot Chocolate — starting on Tuesday, March 4. 'These items aren't commonly purchased, can be complex to make, or are like other beverages on our menu,' Starbucks wrote. The Seattle-based company added that simplifying its menu would allow it to 'focus on fewer, more popular items, executed with excellence.' Starbucks says these cuts will reduce wait times, improve consistency and 'make way for innovation.' The chain says it will continue to introduce a handful of other new items and seasonal specials, such as its Cortado beverage introduced last month and a new 'Iced Cherry Chai' set to debut in the spring. The menu changes arrive amid wider restructuring at the Seattle-based company. Starbucks also said that it would be laying off 1,100 corporate employees globally this week — with CEO Brian Niccol citing needs to 'operate more efficiently.' Niccol joined the chain as CEO in August. Beyond next week's menu cuts, Starbucks says that additional beverages and food will also exit its menu in the coming months — representing a roughly 30% reduction by the end of the 2025 fiscal year in the U.S. But here's a list of the drinks that are set to be removed on March 4, which the company shared with The Associated Press: 1. Iced Matcha Lemonade 2. Espresso Frappuccino 3. Caffè Vanilla Frappuccino 4. Java Chip Frappuccino 5. White Chocolate Mocha Frappuccino 6. Chai Crème Frappuccino 7. Caramel Ribbon Crunch Crème Frappuccino 8. Double Chocolaty Chip Crème Frappuccino 9. Chocolate Cookie Crumble Crème Frappuccino 10. White Chocolate Crème Frappuccino 11. White Hot Chocolate 12. Royal English Breakfast Latte 13. Honey Almondmilk Flat White
