Consumers walk in front of a Starbucks coffee shop in Galeria Krakowska shopping mall in central Krakow, Poland, on July 11, 2025.
Dominika Zarzycka | Nurphoto | Getty Images
Starbucks on Tuesday reported its sixth straight quarter of same-store sales declines as the company implements a turnaround strategy.
CEO Brian Niccol said in a statement that the company’s comeback is ahead of schedule, based on his past experience, which includes turning around Chipotle Mexican Grill after a series of food-safety scandals.
“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 pre-recorded video published with the earnings report.
Shares of the company rose nearly 3% in extended trading.
Here’s what the company reported for the quarter ended June 29 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 50 cents adjusted, it was not immediately clear if it was comparable to the 65 cents expected
- Revenue: $9.5 billion vs. $9.31 billion expected
Starbucks reported fiscal third-quarter net income attributable to the company of $558.3 million, or 49 cents per share, down from $1.05 billion, or 93 cents per share, a year earlier.
Excluding items, the company earned 50 cents per share. A discrete tax item and a one-time investment hosting the company’s three-day event for U.S. store managers weighed on the company’s earnings per share by 11 cents.
Net sales rose 4% to $9.5 billion.
But global same-store sales declined 2%, a steeper drop than estimates of a 1.3% decrease, according to StreetAccount estimates.
However, Starbucks’ North American cafes performed better than expected. The chain’s North American same-store sales fell 2%, a smaller decline than the 2.5% projected Wall Street, according to StreetAccount. Transactions fell 3%, but average ticket rose 1% in the quarter.
“In the U.S., partner engagement is rising, customer connection scores are up, shift completion is at a record high, non-Starbucks Reward customer transactions returned to growth, and more coffeehouses are delivering positive transaction comps,” Niccol said in the video.
And in China, the company’s second-largest market, Starbucks reported same-store sales growth of 2% for the quarter. Transactions climbed 6%, but average ticket fell. Starbucks has cut prices for its drinks in China to compete better with lower-priced rivals, like Luckin Coffee.
Looking ahead to 2026, Starbucks has big plans. Niccol said that the chain will launch protein cold foam, improved artisanal food options, coconut-water based drinks, a new Starbucks app and a “refreshed” Rewards program.
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