Starbucks reported mixed quarterly results on Wednesday — but there was enough in the numbers and on the earnings call for us to continue betting on CEO Brian Niccol’s turnaround efforts. Revenue in the fiscal fourth quarter rose 5.5% on an annual basis to $9.57 billion, beating the consensus estimate of $9.35 billion, according to LSEG. Adjusted earnings per share (EPS) in the three months ended Sept. 28 totaled 52 cents, missing expectations of 56 cents, LSEG data showed. On an annual basis, adjusted EPS dropped 35%. Same-store sales increased 1% globally, driven by an increase in comparable transactions. That beat the FactSet consensus of a 0.3% decline. Same-store sales is an important restaurant industry metric used to smooth out the impact of store closures and openings, as well as currency fluctuations. It’s often used interchangeably with comparable store sales, or comps. SBUX YTD mountain Starbucks’ year-to-date stock performance. Shares of Starbucks weren’t moving much in extended trading on Wednesday, down modestly under $84 each. While the stock has perked up a bit in recent weeks, it’s been tough sledding for Starbucks since the summer — along with the entire restaurant cohort. Sentiment toward the group has been putrid as investors worry about the health of the U.S. consumer and spending on restaurants, in particular. Bottom line Wall Street is back riding the artificial intelligence wave after a brief conflagration of AI bubble fears. On the other hand, the market has no love for the restaurant group. Just look at how shares of Chili’s parent Brinker International traded in Wednesday’s regular session despite another remarkable quarter of same-store sales growth . Add Chipotle to the list. Its shares are falling more than 10% Wednesday night after the burrito chain — and Niccol’s former employer — lowered guidance and offered cautious commentary around younger consumer eating habits. Against such an ugly backdrop, Starbucks needed to deliver a blockbuster quarter for investors to show the stock any love. We didn’t get a blockbuster. But it was not a flop, either — far from it. More than a year into Niccol’s tenure at the coffee chain, the signs of progress are mounting, even if the stock performance isn’t reflecting it. Starbucks’ U.S. business — the focus of Niccol’s turnaround efforts thus far — saw flat comparable stores in the July-to-September quarter. On its face, that’s nothing to write home about. But zooming in, Starbucks saw comps turn positive in the month of September, and that momentum has continued through October. That month-to-month cadence is encouraging and bodes well for Starbucks’ ability to meet Wall Street’s same-store sales expectations for the current holiday quarter. Better yet, the positive comps are being driven by transactions, not higher prices or bigger orders, in a sign that customers are feeling better about the brand and the kind of service they’ll get at cafes. During the quarter, the full rollout of Starbucks’ new operating and staffing model — dubbed Green Apron Service — took effect at company-owned U.S. stores. On the earnings call, Niccol said it’s paying off, with more than 80% of locations meeting his “4 minutes or less” service goal. That was true even with the seasonal return of pumpkin spice lattes and other fall drinks, leading to a pickup in transactions. “I think the fourth quarter marked a turn for us in our U.S. operations,” Niccol said on the call. “So, clearly not declaring any victory. We still have a lot of work in front of us, but it’s clear we’re moving in the right direction. And I believe we’re in the process of building the best Starbucks yet.” Another highlight from the quarter: Same-store sales in the fiercely competitive Chinese market rose a slightly better-than-expected 2%, fueled by a 9% increase in comparable transactions. That was partially offset by a 7% drop in spending per customer, known as average ticket size. But with Starbucks cutting prices in China to better compete with local rivals, a decline in ticket size was expected. The most important thing is that Starbucks has now delivered back-to-back quarters of positive comps in China following a brutal stretch of declines. Considering Starbucks is actively shopping part of its China business, it helps that the business is growing again. Put it all together, and the subdued market reaction Wednesday night is a classic case of good quarter, bad group. Indeed, Jim Cramer indicated Wednesday night that Starbucks is a buy at its current prices. Accordingly, we’re reiterating our buy-equivalent 1 rating and price target of $100. Commentary Starbucks mostly delivered on the topline in the fourth quarter, both companywide and in the key U.S. and China markets. However, skeptics of the Starbucks story will be quick to point to its performance on profitability metrics — both adjusted EPS and adjusted operating margin — to justify staying on the sidelines. Why? One of the key prongs of the Starbucks bear case is that Niccol’s decision to significantly increase staffing at U.S. stores and spend lots of money remodeling locations will limit the company’s earnings power, capping the stock’s ultimate upside. While it is true that Starbucks’ operating margins have missed Street expectations for three quarters, our view is that Niccol’s efforts will drive meaningful topline growth and, when coupled with cost discipline in other parts of the business, including the corporate office, the company will be able to deliver satisfactory earnings growth. We’re willing to be patient to see it through. Starbucks plans to provide formal 2026 and long-term guidance at an investor day in January. Hopefully, that event will provide investors with clarity on the timeline for an earnings inflection. For now, CFO Cathy Smith offered some assurances on the earnings growth dynamic Wednesday night. “It starts with topline. We hope to continue to see those transactions grow, and we are optimistic there. We’ve got the right plan in place that [Niccol has] outlined. And then over time, earnings are going to lag. So, we’ve said that you grow topline first, and then the earnings will follow. We are taking all the necessary actions now, though, to make sure that every single transaction is more profitable going forward, and that’s where I would leave it for now.” On that note, Starbucks closed 627 stores in the quarter as part of its restructuring plan announced in September; the vast majority were in the U.S. or Canada. During the conference call, Smith explained these stores didn’t fit the company’s standard for customer experience, and many weren’t making money. The result of these closures will reduce North America’s revenue but contribute a slightly positive impact to operating margins. (Jim Cramer’s Charitable Trust is long SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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Mithos project aims to develop AI solutions for multimodal transport
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A boozy Colin Farrell filmed a ‘Minority Report’ scene 46 times
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From ‘Christy’ To ‘The Housemaid’
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Julian Schnabel Talks Death, Immortality at Tribeca Festival Lisboa
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‘Hello Kitty’ Movie Sets 2028 Release Date From Warner Bros.
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Lachlan Murdoch’s top adviser Siobhan McKenna resigns from News Corp | News Corporation
Lachlan Murdoch’s top adviser – News Corp’s Australian broadcasting chief Siobhan McKenna – has resigned from the company following the sale of the Foxtel Group to global sports streaming service DAZN.
As chief executive of broadcasting for News Corp, McKenna’s role had significantly diminished after the pay TV and streaming business, which includes Kayo, Binge and Hubbl, was sold to the European broadcaster in April.
A former partner at McKinsey & Company, McKenna was Murdoch’s key adviser in the epic family trust case, which saw him take control of his father’s global media empire and secure the future of the Australian stable of newspapers, magazines and news channels.
The 53-year-old businessperson was heavily involved in the negotiations with Rupert Murdoch’s three “objecting children” in the Nevada court case, which was settled in the US last month. The three oldest siblings received an estimated US$1.1bn each for their shares in the business.
McKenna will leave the company at the end of the year, staff were told by News Corp’s global chief executive, Robert Thomson, in an email on Thursday morning.
“Her decision, and it is her decision, is essentially epochal as Siobhan has been a transformational force during her years with News Corp,” Thomson said.
“The word ‘visionary’ is often abused, but not in Siobhan’s case, as her ability to perceive the future from the haze-shrouded shapes on the horizon is nonpareil. She is irreplaceable.”
Siobhan McKenna has been a key lieutenant of Lachlan Murdoch. Photograph: Drew Angerer/Getty Images McKenna and Lachlan set up the private investment company Illyria 20 years ago, having both great success with Nova Entertainment and significant losses when he took over the Ten network in 2012 before it went into voluntary administration in 2017.
The Albanese government appointed McKenna as chair of Australia Post in 2022, citing her commercial, strategic, digital and technology experience.
Thomson said McKenna navigated Sky News Australia and Foxtel through a “treacherous tech landscape” and made them into “global success stories”.
“The worth of Foxtel was instinctively appreciated by the global leader in sports streaming, DAZN, which recently acquired the company, and with whom we have an ongoing partnership,” he said.
“Sky was transformed from a traditional broadcaster to a digital powerhouse whose efficacious impact stretches far beyond the borders of Australia. The success of both companies marks a profound turning point for our company and a professional inflexion point for Siobhan.”
Lachlan is the chair of News Corp, the parent company of more than two dozen publications including the Wall Street Journal, The Times and the New York Post, after he succeeded his father in 2023 and executive chair and CEO of Fox Corporation.
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AGL signs renewable energy offtake deal for Western Australian unit – Reuters
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Black hole collisions explained by new simulations of OJ 287 system
Black hole collisions explained by new simulations of OJ 287 system
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MHI-MS to Conduct Demonstration Testing of Vehicle Transport Robots at Nakagusuku Port in Okinawa– Project to Realize “People- and Earth-Friendly Vehicle Transport” that Eases Workloads in Harsh Working Conditions and Curbs CO₂ Emissions —
Vehicle transport robots
Tokyo, October 30, 2025 – Mitsubishi Heavy Industries Machinery Systems (MHI-MS), a part of Mitsubishi Heavy Industries (MHI) Group, will conduct demonstration testing of finished vehicle logistics (FVL) using vehicle transport robots to autonomously move automobiles. Following a proposal adopted for “Testbed Support Subsidy Program”(Note1) conducted by Okinawa Prefecture, demonstration testing is scheduled to begin on December 1 this year at the prefecture’s temporary vehicle storage yard (motor pool) at Nakagusuku Port (Uruma, Okinawa Prefecture).
Vehicle transport robots are used to autonomously move finished vehicles at automobile manufacturing plants, motor pools, and for automated valet parking at shopping malls, theme parks, and airports.(Note2) The system enables automated transport even if the vehicle itself is not equipped with autonomous driving capabilities or communication functions, and can be widely utilized in motor pools for both new and used cars without the need for vehicle modification or extensive installation of equipment on the infrastructure side, and without major changes to current operations.
MHI-MS has been jointly developing the first advanced automated transport robot business in Japan with Stanley Robotics, a French venture company, since 2021. As of October 2025, seven core patents have been registered in Japan for automated transport robots, which will drive market expansion. In consideration of the unique conditions in Japan, domestic development of a customizable system was completed in March this year.
Okinawa, the site of the demonstration testing for finished vehicle transport, is a region with a high rate of private car ownership, with the number of private cars owned per capita of the population over the age of 20 exceeding the national average. Used cars especially are preferred by many prefectural residents because they are less expensive than new cars, and play an important role in the infrastructure supporting everyday life. In addition, because of the many tourist arrivals in Okinawa from Japan and abroad, the number of rental car registrations is one of the highest in Japan. Registered rental cars are replaced every few years and sold on the market as used cars. In this way, the used car market supports Okinawa’s industry and the everyday lives of people.
The Nakagusuku Port Motor Pool is mainly used for temporary storage of used cars prior to shipping, and transport services such as the loading and unloading of used cars are conducted at the site on a regular basis. In addition, the outdoor work environment has become harsher due to global warming, so reducing the physical burden on workers and ensuring a sustainable working style is an urgent matter. Strategies to address labor shortages due to the declining birth rate and aging population have also become a concern. In addition, the application of DX (digital transformation) technologies for vehicle management, such as visualization of the storage location of used cars, was also a factor for future consideration.
MHI-MS decided to participate in this program in Okinawa Prefecture to demonstrate the effectiveness of vehicle transport robots as a solution to such challenges. The demonstration testing will evaluate the potential for improving the working environment, and responding to labor shortages, as well as “human-centered robot utilization” such as robot-based yard management systems and DX to handle vehicle location information. The tests will also evaluate the potential contribution to decarbonization efforts by confirming supplemental benefits such as curbing CO2 emissions through reduced driving of gasoline-powered vehicles.
Going forward, as a company committed to creating new value for society and solving future societal issues through mechatronics, MHI-MS will establish a new future for finished vehicle transport that is friendly to both people and the planet.
- 1 “Testbed Support Subsidy Program (Okinawa Prefecture Subsidy Program)” provides support for proof-of-concept experiments within Okinawa Prefecture by companies with innovative digital technologies and services, with the aim of furthering innovation and solutions to societal issues.
See the following website for more information about the program.
https://testbedislandokinawa.com(Japanese) - 2 When the driver stops at a designated berth close to the facility, the vehicle transport robot moves the vehicle to a vacant space, taking over parking on behalf of the driver. The process is reversed when retrieving the vehicle, with the robot transporting the vehicle back to the berth at the time specified by the driver in advance using the smartphone app. For drivers, there is no need to find a parking space or park, and no concerns about brushing against the adjacent car when opening the door.
Related Press Releases
“MHI Group to Deliver Japan’s First Systems for Automated Valet Parking and Automated Transportation of Finished Vehicles” (October 27, 2021)
https://www.mhi.com/news/21102702.html“MHI Group to Begin Demonstration Testing of Automated Valet Parking System Using AGV Robots at Outlet Mall in Chiba” (June 13, 2022)
https://www.mhi.com/news/220613.html“MHI-MS Completes Domestic Registration of Core Patents for Vehicle Transport Robots” (September 11, 2024)
https://www.mhi.com/jp/news/24091101.html (Japanese)“MHI-MS Completes Domestic Development of Vehicle Transport Robot” (March 4, 2025)
https://www.mhi.com/news/250304.htmlContinue Reading
- 1 “Testbed Support Subsidy Program (Okinawa Prefecture Subsidy Program)” provides support for proof-of-concept experiments within Okinawa Prefecture by companies with innovative digital technologies and services, with the aim of furthering innovation and solutions to societal issues.