Starbucks (SBUX) Q3 2025 earnings summary

Executive summary

• Q3 FY25 consolidated net revenues rose 4% year-over-year to $9.5 billion, driven by new store openings, but global comparable store sales declined 2% due to lower U.S. transactions partially offset by higher average ticket.

• GAAP EPS was $0.49, down 47% year-over-year, and non-GAAP EPS was $0.50, down 46%, reflecting margin contraction and one-time investments.

• The company is in the early stages of a turnaround, focusing on operational improvements, partner engagement, and customer experience, with major investments in the Green Apron Service model and digital innovation.

• Store count reached 41,097 globally, up 4% year-over-year, with 308 net new stores opened in Q3 and U.S. and China comprising 61% of the portfolio.

• The company continued its “Back to Starbucks” strategy, including the acquisition of 23.5 Degrees Topco Limited, converting 113 UK licensed stores to company-operated.

Financial highlights

• Consolidated net revenues increased 4% to $9.5 billion compared to Q3 FY24; constant currency growth was 3%.

• GAAP operating margin contracted 680 bps to 9.9%; non-GAAP margin contracted 660 bps to 10.1%, primarily due to deleverage and increased labor hours.

• Net earnings attributable to shareholders fell 47% year-over-year to $558.3 million; Q3 EPS was $0.49, down from $0.93.

• Store operating expenses as a percentage of company-operated store revenues increased to 55.6% from 50.9% year-over-year.

• Cash and investments totaled $4.7B as of June 29, 2025, up from $3.8B at September 29, 2024.

Outlook and guidance

• Leadership expects to accelerate innovation and growth in 2026, focusing on customer service and operational improvements.

• No official guidance provided, but Q4 is expected to remain conservative due to ongoing transformation and uncertain consumer environment.

• Over $500 million in additional labor hours will be invested in the U.S. company-operated portfolio over the next year.

• Capital expenditures for fiscal 2025 are expected to be moderately lower than fiscal 2024.

• Investor day scheduled for early 2026 to share long-term strategy and financial aspirations.