Starbucks' Q3 results have shown that its "Back to Starbucks" strategy is working, especially throughout the U.S. Market.
Starbucks Corporation has reported financial results for its 13-week fiscal third quarter ended June 29, 2025, which highlighted that Q3 consolidated net revenues were up four percent.
Global comparable store sales declined one percent, driven by a two percent decline in comparable transactions, partially offset by a one percent increase in average ticket. North America comparable store sales declined two percent, driven by a three percent decline in comparable transactions, partially offset by a one percent increase in average ticket; U.S. comparable store sales declined two percent, driven by a four percent decline in comparable transactions, partially offset by a two percent increase in average ticket.
International comparable store sales were flat, driven by a one percent increase in comparable transactions, offset by a one percent decline in average ticket; China comparable store sales increased two percent, driven by a six percent increase in comparable transactions, partially offset by a four percent decline in average ticket.
The company opened 308 net new stores in Q3, ending the period with 41,097 stores: 53 percent company-operated and 47 percent licensed. At the end of Q3, stores in the U.S. and China comprised 61 percent of the company’s global portfolio, with 17,230 and 7,828 stores in the U.S. and China, respectively.
Consolidated net revenues increased four percent to USD 9.5 billion, or a three percent increase on a constant currency basis. GAAP operating margin contracted 680 basis points year-over-year to 9.9 percent, primarily driven by deleverage, investments in support of “Back to Starbucks,” including additional labour and Leadership Experience 2025, and inflation. Non-GAAP operating margin contracted 660 basis points year-over-year to 10.1 percent, or contracted 650 basis points year-over-year on a constant currency basis.
An effective tax rate of 31.8 percent compared to 24.8 percent in the prior year, the increase was primarily driven by the discrete impact of changes in indefinite reinvestment assertions for certain foreign entities of approximately 850 basis points.
“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,” commented Brian Niccol, chairman and chief executive officer.
“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.”
“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 USD 0.11,” commented Cathy Smith, chief financial officer.
“We are focused on growing back better and delivering durable, sustainable long-term growth.”
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