SEATTLE, October 30, 2025: Starbucks Corporation reported on Wednesday that global comparable-store sales increased by 1 percent in the fiscal fourth quarter ending September 28, marking its first period of positive same-store growth in nearly two years. The Seattle-based coffee chain generated revenue of approximately 9.57 billion dollars for the quarter, representing a 5 percent year-over-year increase and surpassing Wall Street expectations.
Comparable-store sales in the United States were unchanged from the prior year, while international markets recorded a 3 percent increase. In China, one of the company’s largest international markets, transactions rose about 9 percent, though average spending per order declined roughly 7 percent. Starbucks reported adjusted earnings per share of 0.52 dollars, below analyst projections of about 0.56 dollars.
Net income fell sharply to approximately 133 million dollars, down from the previous year’s level, while the company’s operating margin contracted to about 2.9 percent compared with 14.4 percent in the same quarter last year. The company said quarterly results reflected significant restructuring expenses and operational adjustments. During the period, Starbucks closed 627 stores, more than 90 percent of them in North America, resulting in a net reduction of 107 company-operated locations worldwide.
International markets drive the company’s quarterly growth
The company also confirmed that approximately 900 corporate roles were eliminated as part of its cost-management program. Starbucks cited elevated costs for coffee beans and other commodities as key factors affecting profitability. The company noted that its U.S. segment experienced lower average ticket sizes, while international operations benefited from stronger customer traffic that offset declines in average spending per visit.
Chief Executive Officer Brian Niccol, who assumed leadership in August 2024, said the results represented measurable progress in stabilizing the business after six consecutive quarters of declining same-store sales. He highlighted that the company’s renewed focus on operational efficiency and customer experience contributed to the modest sales rebound. Starbucks did not issue a full-year forecast for fiscal 2026 but said it plans to provide an updated financial outlook in January.
International operations offset U.S. market stagnation
Following the earnings announcement, the company’s shares traded with limited movement as investors assessed the balance between sales recovery and margin pressure. Analysts described the return to positive same-store sales growth as a turning point, though they noted that operating profitability remains constrained by higher input costs and restructuring-related charges. The 1 percent increase in comparable sales breaks a prolonged period of declines and reflects stronger performance across key international markets.
Starbucks delivered its first quarterly same-store sales increase since late 2023, supported by international momentum and improved store traffic. However, the results also underscored the continued impact of restructuring costs and commodity inflation on margins, leaving profitability well below historical levels as the company works to sustain its operational recovery. – By Content Syndication Services.