Customers stroll in entrance of a Starbucks espresso store in Galeria Krakowska shopping center in central Krakow, Poland, on July 11, 2025.
Dominika Zarzycka | Nurphoto | Getty Photos
Starbucks on Tuesday reported its sixth straight quarter of same-store gross sales declines as the corporate implements a turnaround technique.
CEO Brian Niccol mentioned in an announcement that the corporate’s comeback is forward of schedule, primarily based on his previous expertise, which incorporates turning round Chipotle Mexican Grill after a sequence of food-safety scandals.
“Whereas our monetary outcomes do not but replicate all of the progress we have made, the indicators are clear — we’re gaining momentum,” Niccol mentioned in a pre-recorded video printed with the earnings report.
Shares of the corporate rose 4% in prolonged buying and selling.
Here is what the corporate reported for the quarter ended June 29 in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG:
- Earnings per share: 50 cents adjusted, it was not instantly clear if it was akin to the 65 cents anticipated
- Income: $9.5 billion vs. $9.31 billion anticipated
Starbucks reported fiscal third-quarter web revenue attributable to the corporate of $558.3 million, or 49 cents per share, down from $1.05 billion, or 93 cents per share, a yr earlier.
Excluding restructuring prices and different gadgets, the corporate earned 50 cents per share. A discrete tax merchandise and a one-time funding internet hosting the corporate’s three-day occasion for U.S. retailer managers weighed on the corporate’s earnings per share by 11 cents.
Internet gross sales rose 4% to $9.5 billion.
However world same-store gross sales declined 2%, a steeper drop than estimates of a 1.3% lower, in line with StreetAccount estimates.
Nevertheless, Starbucks’ North American cafes carried out higher than anticipated. The chain’s North American same-store gross sales fell 2%, a smaller decline than the two.5% projected Wall Avenue, in line with StreetAccount. Transactions fell 3%, however common ticket rose 1% within the quarter.
“Within the U.S., accomplice engagement is rising, buyer connection scores are up, shift completion is at a report excessive, non-Starbucks Reward buyer transactions returned to progress, and extra coffeehouses are delivering optimistic transaction comps,” Niccol mentioned within the video.
And in China, the corporate’s second-largest market, Starbucks reported same-store gross sales progress of two% for the quarter. Transactions climbed 6%, however common ticket fell. Starbucks has minimize costs for its drinks in China to compete higher with lower-priced rivals, like Luckin Espresso.
This quarter marked the primary time in a yr and a half that the corporate’s China enterprise noticed its same-store gross sales improve. Beneath stress from elevated competitors, a weaker economic system and the distraction of the struggling U.S. enterprise, Starbucks has been weighing promoting a stake in its China enterprise, which general might be valued at as much as $10 billion, CNBC has beforehand reported.
Looking forward to fiscal 2026, Starbucks has large plans. Niccol mentioned that the chain will launch protein chilly foam, improved artisanal meals choices, coconut-water primarily based drinks, a brand new Starbucks app and a “refreshed” Rewards program.
