KRAKOW, Poland, July 11, 2025 — Starbucks reported its sixth consecutive quarterly decline in same-store sales on Tuesday, even as the company aims for a turnaround. CEO Brian Niccol expressed optimism, stating the company’s comeback is ahead of schedule, drawing parallels to his experience reviving Chipotle Mexican Grill after its food-safety issues.
## Turnaround Strategy Yields Mixed Results for Coffee Giant
Starbucks faces its sixth straight quarter of declining same-store sales, but the CEO sees signs of momentum.
- Global same-store sales fell 2%, missing estimates.
- North American sales also declined but beat expectations.
- Revenue surpassed analyst projections.
- The company plans new menu items and app updates for 2026.
“While our financial results don’t yet reflect all the progress we’ve made, the signs are clear — we’re gaining momentum,” Niccol said in a video released with the earnings. Shares of the coffee giant saw a nearly 3% increase in after-hours trading.
For the fiscal third quarter ending June 29, the company reported adjusted earnings per share of 50 cents, though a direct comparison to the expected 65 cents was not immediately clear. Revenue climbed 4% to $9.5 billion, exceeding the $9.31 billion anticipated by Wall Street analysts.
Starbucks posted fiscal third-quarter net income of $558.3 million, or 49 cents per share, a significant drop from the $1.05 billion, or 93 cents per share, recorded a year prior. Excluding certain items, earnings stood at 50 cents per share. A one-time tax item and an investment in a store manager event negatively impacted earnings per share by 11 cents.
Despite the overall dip, global same-store sales fell 2%, a steeper decline than the estimated 1.3% decrease. However, North American locations performed better than anticipated, with sales down 2% compared to the projected 2.5% drop. Transaction volume decreased by 3%, but the average ticket size increased by 1%.
Niccol highlighted improvements in the U.S., noting increased partner engagement, higher customer connection scores, record shift completion, growth in non-Starbucks Rewards customer transactions, and more stores achieving positive transaction growth.
In China, Starbucks’ second-largest market, same-store sales grew by 2%. Transactions rose 6%, although the average ticket price decreased as the company lowered prices to remain competitive with rivals like Luckin Coffee.
Looking ahead to 2026, Starbucks has ambitious plans, including the introduction of protein cold foam, enhanced artisanal food options, coconut-water based beverages, a new app, and a revamped Rewards program.
Consumers walk in front of a Starbucks coffee shop in Galeria Krakowska shopping mall in central Krakow, Poland, on July 11, 2025.
