Starbucks sales dipped in its third quarter, despite CEO Brian Niccol claiming the coffee giant’s turnaround plan is “ahead of schedule”.
For the 13 weeks to 29 June 2025, Starbucks reported a 2% decline in global and North America comparable store sales, while international store sales fell flat.
Operating income also suffered over the quarter, decreasing by 36% to $918.7m (£687.5m) in North America, with a 5% decline in its international segments to $272.7m (£204m).
It comes as costs related to the company's ‘Back to Starbucks’ strategy begin to add up. Niccol launched the turnaround plan just days into his role as CEO last September. It aims to boost sales and address issues from long waiting times to frustrated staff.
In the most tangible change so far, Niccol announced plans last month to roll out a new staffing model across 11,000 North American stores, putting more baristas front and centre to improve employee morale and the customer experience.
However, Starbucks expects to spend more than $500m (£374m) on extra wages in US sites next year, according to CFO Cathy Smith.
Meanwhile, total net revenues increased by 4% to $9.5bn (£7.1bn) over the quarter and by 2% to $6.9bn (£5.1bn) in North America, primarily due to new company-operated store growth of 5% over the past 12 months.
Internationally, net revenues rose by 9% to $2bn (£1.4bn), which it also attributed to new company-operated store growth of 7% over the year.
Starbucks opened 308 net new stores over the period, ending with 41,097 sites. The US and China now comprise 61% of the company’s global portfolio.
“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,” said Niccol.
He stated that in 2026, Starbucks will "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,” he added.
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