Starbucks has released its earnings report for the second quarter of 2025, showing a 1% decline in global same-store sales, falling short of analyst expectations which forecasted a 0.26% drop. This comes as a slight improvement from the previous quarter's 4% decline. Reuters reported that the U.S. market continues to challenge Starbucks, with same-store sales also decreasing by 1% domestically.
Despite efforts to improve profitability, Starbucks reported adjusted earnings per share at $0.41, below the anticipated $0.49. The company's net income has dropped by 50%, now standing at $384 million. On a positive note, Starbucks saw a 2% increase in international comparable sales, attributed in part to the stabilization of the Chinese market after four consecutive quarters of decline.
In response to these challenges, Starbucks CEO Brian Niccol highlighted strategic initiatives under the "Back to Starbucks" plan, which prioritize enhancing the coffeehouse experience and improving service speed. As part of this strategy, the company is increasing store staffing and slowing the implementation of automation to enhance customer service, countering the industry's focus on technology-driven cost reductions. Additionally, Starbucks is shifting away from heavy reliance on promotions and loyalty programs, favoring more comprehensive marketing campaigns.