Seattle, July 30, 2025 — Starbucks shares climbed on Tuesday after the company reported better-than-expected quarterly earnings, signaling growing investor confidence in CEO Brian Niccol’s ongoing turnaround efforts.
Revenue for the quarter reached $9.46 billion, a 4% year-over-year increase, beating Wall Street forecasts. Despite a 47% drop in net income to $558 million, the performance exceeded expectations amid challenges including slower U.S. foot traffic and international headwinds.
Same-store sales in North America declined by 2%, while China, a key growth market for Starbucks, posted a 2% increase in comparable sales. The improvement in China was attributed to more competitive pricing and improved customer engagement strategies.
Niccol’s “Back to Starbucks” plan, launched earlier this year, focuses on restoring in-store service, enhancing product innovation, and improving operational efficiency. The company has invested over $500 million in additional labor hours to improve service quality across U.S. stores, while also streamlining store operations and updating layouts to better serve dine-in and drive-thru customers.
New prototype stores are also being rolled out with lower build costs, updated designs, and a stronger focus on convenience. Starbucks plans to refresh 1,000 stores by the end of 2026 as part of this effort.
Niccol emphasized the importance of returning to core values. “We are focused on delivering quality service and reconnecting with our customers. Our transformation is about restoring trust and creating long-term value,” he said during the earnings call.
Analysts reacted positively to the results, noting that while challenges remain, the company appears to be stabilizing. With product innovation, digital engagement, and store upgrades underway, Starbucks is positioning itself for stronger growth in the coming fiscal year.
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