Revenue
Earnings
The consensus estimate for earnings per share in Q3 2025 is $0.64, which implies a decline of 31% from Q3 2024. In Q2 2025, adjusted EPS decreased 40% YoY to $0.41.
Points to note
In Q2, Starbucks saw its comparable store sales decline 1% both globally and across North America, mainly due to decreases in transactions. These declines were partly offset by increases in average ticket. International comp sales, on the other hand, grew 2%, with growth in transactions partly offset by a drop in average ticket. US comp sales declined 2% while China comp sales remained flat.
The company’s overall revenue growth last quarter was helped by net new company-operated store growth while profitability was weighed down by increased store investments. Margins were impacted by higher labor investments and restructuring costs.
Despite these headwinds, the coffee giant is seeing early benefits from its Back to Starbucks strategy. Its investments in its coffee houses, marketing and menu have helped improve the customer experience, which in turn have led to a deceleration in transaction declines, as well as positive comps in some international markets.
SBUX is also improving its digital capabilities, with updates to its app that will help in scheduling mobile order pickups and improve price transparency. Even though the implementation of its Back to Starbucks strategy across all its stores in the US will take time, some of the benefits from its initiatives may be reflected in the Q3 results. Starbucks anticipates its Q3 top line to follow normal seasonality.
The company’s bottom line is likely to see continued pressure from higher costs related to investments in labor, stores and other initiatives. Higher labor costs are likely to continue to weigh on margins.