financetom
Business
financetom
/
Business
/
Starbucks posts steeper-than-expected drop in global sales on tepid demand
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Starbucks posts steeper-than-expected drop in global sales on tepid demand
Jul 29, 2025 1:29 PM

(Reuters) -Starbucks ( SBUX ) reported a bigger-than-expected fall in third-quarter global comparable sales on Tuesday, as cautious consumer spending cooled demand at the coffee chain operator.

The company saw overall same-store sales decline 2% for the quarter ended June 29, its sixth straight quarterly contraction. Analysts on average had estimated a 1.19% dip, according to data compiled by LSEG.

CEO Brian Niccol has pushed for a simplified menu, freshly baked food items, cups with handwritten messages and quicker service as he tries to drive a brand reset since taking the helm in last August.

He has also pledged to increase investments in staffing in all 10,000-plus Starbucks ( SBUX )-owned U.S. stores by the end of the summer.

"We are making tangible progress in our 'Back to Starbucks' ( SBUX ) 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 11 cents," CFO Cathy Smith said.

In its largest North America market, same-store sales fell 2%, compared with 2% drop last year.

Customer visits to the coffee chain operator were down an average 0.1% from April to June, data by research firm Placer.ai showed. That was better than a 0.9% drop in the prior three months, suggesting that Niccol's "Back to Starbucks ( SBUX )" initiative and recent menu innovations were beginning to drive a turnaround, Placer.ai said.

The company's shares were down 1% at $92 in volatile extended trading.

(Reporting by Savyata Mishra in Bengaluru; Editing by Anil D'Silva)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Silicon Labs Q3 revenue rises 24%, beats estimates
Silicon Labs Q3 revenue rises 24%, beats estimates
Nov 4, 2025
Overview * Silicon Labs ( SLAB ) Q3 revenue grows to $206 mln, beating analyst expectations * Adjusted EPS for Q3 was $0.32, reflecting operational performance * Company missed analyst estimates for net income and operating income Outlook * Company expects Q4 revenue between $200 mln and $215 mln * Silicon Labs ( SLAB ) sees Q4 GAAP EPS between...
BRIEF-Wright Flood Completes The Acquisition Of Poulton Associates
BRIEF-Wright Flood Completes The Acquisition Of Poulton Associates
Nov 4, 2025
Nov 4 (Reuters) - Brown & Brown Inc ( BRO ): * WRIGHT FLOOD COMPLETES THE ACQUISITION OF POULTON ASSOCIATES, LLC Source text: Further company coverage: ...
InspireMD Q3 revenue beats estimates on commercial launch of CGuard Prime
InspireMD Q3 revenue beats estimates on commercial launch of CGuard Prime
Nov 4, 2025
Overview * InspireMD ( NSPR ) Q3 revenue grows 39% yr/yr, beating analyst expectations * Net income for Q3 beats analyst estimates despite larger net loss * Company attributes revenue growth to U.S. launch and international market penetration Outlook * InspireMD ( NSPR ) highlights strong demand for its CGuard Prime globally * Company emphasizes strategic focus on U.S. commercial...
AdaptHealth Q3 revenue beats estimates
AdaptHealth Q3 revenue beats estimates
Nov 4, 2025
Overview * AdaptHealth ( AHCO ) Q3 revenue rose 1.8% yr/yr, beating analyst expectations * Adjusted EBITDA for Q3 increased 3.5% yr/yr * Company reduced debt by $50 mln in Q3, totaling $225 mln yr-to-date Outlook * Company maintains FY 2025 net revenue guidance of $3.18 bln to $3.26 bln * AdaptHealth ( AHCO ) projects FY 2025 adjusted EBITDA...
Copyright 2023-2026 - www.financetom.com All Rights Reserved