Starbucks Reports Q3 2025 Results, Signals Strong Momentum and Innovation Wave Ahead

Seattle, July 30, 2025 (Qahwa World) – Starbucks Corporation (Nasdaq: SBUX) yesterday reported its financial results for the third quarter of fiscal year 2025, ending June 29. The results reflect steady progress under the company’s “Back to Starbucks” strategy and mark a pivotal step in what leadership says is a foundation for transformative innovation in 2026.

“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,” said 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.”

While Starbucks acknowledged that the full financial impact of these improvements is not yet fully reflected in Q3 performance, Niccol said momentum is building — especially in the U.S. market, where partner (employee) engagement is increasing, customer connection scores are rising, and non-Rewards customer transactions have returned to growth.

The company also noted that more U.S. stores are now delivering positive comparable transactions, and shift completion rates reached record highs — evidence, Niccol said, of growing operational strength.

Green Apron Service Model and Store Transformation

A central component of this operational turnaround is Starbucks’ new Green Apron Service model, described as the company’s largest investment ever in customer experience. The model is designed to bring greater speed, craftsmanship, and human connection to every coffeehouse.

It includes:

• Smarter staffing strategies

• Advanced order sequencing systems

• Defined service standards

According to Niccol, the model is already showing results in terms of faster service, stronger sales, and improved customer satisfaction — and will roll out nationwide next month.

Starbucks is also reinvesting in its physical spaces. Niccol said the company is “uplifting coffeehouses” with more seating, warmth, and texture, and building new stores with a 30% lower cost to build, while enhancing the customer experience.

Innovation Plans for 2026

With this new operating foundation in place, Starbucks is preparing to launch a wave of innovation in 2026. The company unveiled several upcoming initiatives, including:

• Protein Cold Foam: A first-of-its-kind modifier delivering 15 grams of protein.

• A bold new 1971 Dark Roast and reimagined artisanal bakery offerings

• Test beverages featuring coconut water, along with gluten-free, high-protein food and customizable energy drinks

• A new Starbucks mobile app, improved Mobile Order & Pay, and an updated Rewards program designed to increase engagement and deepen loyalty.

Over $2 Billion in International Revenue

Starbucks also highlighted international growth as a key contributor to its momentum. For the first time, international revenue exceeded $2 billion in the quarter. Notably, comparable sales in China — a vital growth market — turned positive, while expansion efforts are continuing in Canada, the U.K., Mexico, Türkiye, and other global markets.

Financial Notes and EPS Impact

Chief Financial Officer Cathy Smith confirmed that Starbucks made a one-time investment in its Leadership Experience 2025 initiative and recorded a discrete tax expense during the quarter, which collectively reduced earnings per share (EPS) by $0.11.

“We are making tangible progress in our ‘Back to Starbucks’ strategy,” Smith said.
“We are focused on growing back better and delivering durable, sustainable long-term growth.”

Full GAAP and non-GAAP reconciliations are available on the Starbucks Investor Relations site.

Conclusion: A Better Starbucks Ahead

Niccol closed the Q3 earnings presentation by affirming the company’s broader mission:

“We aren’t just getting back to Starbucks — we’re building the best Starbucks yet.”

With foundational improvements in place, a strong pipeline of innovations on the horizon, and global momentum accelerating, Starbucks is positioning itself not just for a recovery — but for a reimagined future.