Starbucks (SBUX) earnings Q4 2025

Starbucks on Wednesday reported that its quarterly same-store sales returned to growth for the first time in nearly two years, showing that its turnaround strategy is winning over lapsed customers.

The coffee chain’s global same-store sales rose 1%, lifted by international markets. Its U.S. same-store sales were flat for the quarter but turned positive in September. Wall Street was projecting global same-store sales declines of 0.3% and a 0.9% decrease in U.S. same-store sales.

“Critical moment for our company, we’re really proud of where we are,” CEO Brian Niccol said in an interview on CNBC’s “Squawk on the Street” on Thursday.

Domestic same-store sales turned positive in September, and the company has held onto that momentum through October, Niccol said on the company’s conference call. However, CFO Cathy Smith cautioned analysts against cheering too soon.

“Turnarounds are difficult to forecast, and while we have good reason to believe that our U.S. company-operated [same-store sales] should build through the year, we also know that recoveries are not always linear,” she said.

The company suspended its annual forecast a year ago, and it is not expecting to release a near- or long-term outlook until an investor day slated for late January.

Shares of Starbucks fell more than 1% in morning trading Thursday.

Here’s what the company reported for the quarter ended Sept. 28 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 52 cents adjusted vs. 56 cents expected
• Revenue: $9.57 billion vs. $9.35 billion expected

The coffee giant reported fiscal fourth-quarter net income attributable to Starbucks of $133.1 million, or 12 cents per share, down from $909.3 million, or 80 cents per share, a year earlier.

Excluding restructuring costs, litigation settlements and other items, Starbucks earned 52 cents per share. During the quarter, the company closed 627 locations and laid off roughly 900 nonretail employees as part of a restructuring plan.

In addition to the restructuring plan, Starbucks has been investing heavily in labor, including adding assistant store managers to many North American cafes. The added labor costs weighed on its operating margin this quarter.

Net sales rose 5% to $9.57 billion.

To revive U.S. sales, Starbucks has focused on improving the in-store experience for customers and cutting service times to under four minutes per order. More than 80% of company-operated locations have an average service time of four minutes or less, even as the chain saw a rise in traffic after it launched its fall menu, according to Niccol.

The company’s marketing efforts have switched from promotions and limited-time items to highlighting its coffee and trendy innovation, like protein-packed cold foam.

The strategy has succeeded in winning back some U.S. customers. Smith said that the number of…