Starbucks reported its sixth straight quarter of same-store sales declines, but CEO Brian Niccol says a turnaround is ahead of schedule. The company beat Wall Street’s quarterly revenue estimates and reported comparable sales growth in China.
Niccol, who has experience turning around Chipotle Mexican Grill, stated that while the financial results don’t yet reflect all the progress made, the signs are clear – they’re gaining momentum. Shares rose 4% in extended trading after the earnings report.
For the quarter ended June 29, Starbucks reported $558.3 million in net income and 49 cents per share in adjusted earnings. Global same-store sales declined 2%, but North American cafes performed better than expected, with a smaller decline of 2%. Transactions fell 3% but average ticket rose 1%.
To bring back customers, Starbucks is focusing on hospitality by rolling out its “Green Apron Service” program. The chain is also rebuilding cafes to make them more comfortable again.
In China, same-store sales grew 2%, and transactions climbed 6% despite a weaker economy and increased competition. However, Starbucks plans to cut prices to compete better with rivals like Luckin Coffee.
The company remains committed to its China business, which could be valued at up to $10 billion, but is evaluating options for the stake. Looking ahead, Starbucks plans to invest $500 million in labor and launch new products, including protein cold foam and a refreshed Rewards program, by 2026.
Source: https://www.cnbc.com/2025/07/29/starbucks-sbux-q3-2025-earnings.html