Starbucks returns to comparable store sales growth with 1% global increase in Q3 2025

GLOBAL – Starbucks has reported a return to global comparable store sales growth, marking its first increase in seven quarters.

Comparable store sales rose 1% across its global estate, driven by a 3% rise internationally, supported by a 6% increase in transactions.

The US market saw flat overall sales but moved into positive territory in September 2025.

Consolidated net revenues for the fiscal third quarter reached US$9.6 billion, representing a 5% increase year-over-year.

North America net revenues rose 3% to US$6.9 billion, despite a decline in licensed store revenue. The international segment’s net revenues grew 9% to US$2.1 billion compared to the prior year.

Chairman and CEO Brian Niccol stated, “We’re a year into our ‘Back to Starbucks’ strategy, and it’s clear the turnaround is taking hold.”

Niccol took over in September 2024, focusing on reducing operational complexity and enhancing the in-store experience.

The company recorded a US$1 billion restructuring charge related to the closure of 627 stores, primarily in North America, and laid off 900 employees.

These actions negatively impacted profitability. Fiscal Q3 net income attributable to Starbucks was US$133.1 million, down from US$909.3 million the previous year.

Operating margin shrank by 1,150 basis points year-over-year to 2.9%, driven mainly by restructuring costs, inflation, labor investments for the turnaround, and deleveraging efforts.

Starbucks ended the quarter with 40,990 stores worldwide, after 107 net closures. The US and China together represent 61% of the global footprint, with 16,864 stores in the US and 8,011 in China.

Chief Financial Officer Cathy Smith described the quarter as a milestone in the “Back to Starbucks” turnaround, delivering global comparable sales growth for the first time in nearly two years.

As part of its recovery, Starbucks is prioritizing strategic expansion, focusing on optimizing its store footprint by closing underperforming urban locations and growing drive-thru and suburban stores, which have demonstrated 12% sales growth.

The brand is also investing in technology innovations, including mobile ordering and in-store prioritization algorithms, to enhance operational efficiency and customer experience.

Its “Back to Starbucks” strategy features a renewed emphasis on premium coffee quality, sustainability goals, and tailored local menus that blend global consistency with cultural sensitivity.

This multifaceted approach aims to reverse traffic declines and maximize brand loyalty amid a competitive market environment, positioning Starbucks for sustainable long-term growth.

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