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 stated 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 collection of food-safety scandals.
“Whereas our monetary outcomes do not but mirror all of the progress we have made, the indicators are clear — we’re gaining momentum,” Niccol stated in a pre-recorded video printed with the earnings report.
Shares of the corporate rose practically 3% in prolonged buying and selling.
This 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 objects, 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 keeping with StreetAccount estimates.
Nonetheless, 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 keeping 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 file excessive, non-Starbucks Reward buyer transactions returned to development, and extra coffeehouses are delivering optimistic transaction comps,” Niccol stated within the video.
And in China, the corporate’s second-largest market, Starbucks reported same-store gross sales development 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.
Waiting for 2026, Starbucks has huge plans. Niccol stated 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.
