Starbucks released its fiscal third-quarter results for 2025, revealing a mixed financial picture. The company’s “Back to Starbucks” turnaround strategy is showing some positive signs, but significant challenges remain. Consolidated net revenues grew 4% year-over-year to $9.5 billion, surpassing analyst expectations. However, profitability took a hit, with both GAAP and non-GAAP earnings per share (EPS) declining sharply. The drop in EPS was attributed to one-time investments in strategic initiatives, including the “Leadership Experience 2025” and a new “Green Apron Service” operating model aimed at improving the customer and employee experience.
Despite the revenue increase, global comparable store sales fell for the sixth consecutive quarter, declining by 2%. North America comparable store sales also saw a 2% decrease, driven by a drop in transactions. A bright spot was China, where comparable store sales grew by 2%, a positive development in a key market. Starbucks leadership remains optimistic, pointing to improvements in employee engagement and customer satisfaction scores in the U.S. and a pipeline of new product and app innovations slated for 2026. The company is betting that these foundational investments, while impacting near-term profitability, will pave the way for sustainable long-term growth.
For a deeper dive into the numbers and a full transcript of the earnings call, you can find the complete report here: https://investor.starbucks.com/news/financial-releases/news-details/2025/Starbucks-Reports-Q3-Fiscal-Year-2025-Results/default.aspx
