Starbucks turnaround plan ‘ahead of schedule’ despite Q3 sales dip
The sales decline was driven by a 2% decline in comparable transactions, partially offset by a 1% increase in average ticket
Starbucks has said a turnaround plan for the group is “ahead of schedule”, despite seeing global comparable store sales fall by 2% in its third quarter.
This decline was driven by a 2% decline in comparable transactions, partially offset by a 1% increase in average ticket.
In the quarter ended 29 June 2025, consolidated net revenues increased 4% to $9.5bn (£7.1bn), or a 3% increase on a constant currency basis.
Its operating income fell to $918.7m (£687m) in Q3 FY25 compared to $1.4bn (£1bn) in Q3 FY24, and a contracted operating margin was in part due to investments in support of its ‘Back to Starbucks’ turnaround plan, including additional labor and the Leadership Experience 2025.
Over the period, North America comparable store sales fell by 2%, driven by a 3% decline in comparable transactions and partially offset by a 1% increase in average ticket. US comparable store sales were also down by 2%, driven by a 4% decline in comparable transactions and partially offset by a 2% increase in average ticket.
Meanwhile, international comparable store sales were flat, driven by a 1% increase in comparable transactions and offset by a 1% decline in average ticket.
Over the period the company opened 308 net new stores, ending the period with 41,097 stores, with 53% company-operated and 47% licensed.
At the end of Q3, stores in the US and China comprised 61% of the company’s global portfolio, with 17,230 and 7,828 stores in the US and China, respectively.
Brian Niccol, chairman and chief executive officer, said: “We’ve fixed a lot and done the hard work on the hard things to build a strong operating foundation, and based on my experience of turnarounds, we are ahead of schedule.
“In 2026, we’ll unleash a wave of innovation that fuels growth, elevates customer service, and ensures everyone experiences the very best of Starbucks. We’re building back a better Starbucks experience and a better business.”
Cathy Smith, chief financial officer, added: “We are making tangible progress in our ‘Back to Starbucks’ strategy. In the quarter, we made a significant non-recurring investment in our Leadership Experience 2025 and also incurred a discrete tax item, which in the aggregate, negatively impacted Q3 EPS by $0.11. We are focused on growing back better and delivering durable, sustainable long-term growth.”
