This report does not constitute a rating action. In the second quarter of fiscal 2025 (ended March 30, 2025), Starbucks' global comparable store sales declined 1% due to a 2% decline in comparable transactions, partially offset by a 1% increase in average ticket. This follows a first-quarter comparable store sales decline of 4% due to a 6% decline in comparable transactions, partially offset by a 3% increase in average ticket. While this reflects sequential improvement in operating performance, we continue to expect a weak fiscal 2025 as the company aims to reengage its customer. In fiscal 2025, we project global revenue growth of less than 1%, S&P Global Ratings-adjusted EBITDA margin contraction of almost 200 basis points (bps), resulting in
