Starbucks (SBUX) has released its financial results for the third quarter of the year, revealing a mixed performance. While the company reported earnings per share (EPS) of $0.52, which fell short of the Wall Street expectation of $0.56, its revenue totaled $9.60 billion, surpassing the anticipated $9.35 billion. Year-over-year, revenue saw an increase of 5%.
In a notable positive development, Starbucks achieved a 1% rise in global same-store sales, driven primarily by growth in international markets, signaling a potential recovery. Although U.S. same-store sales remained flat in the third quarter, they did post positive results in September. Analysts had previously forecasted a slight decline in both global and U.S. same-store sales, making this turnaround particularly noteworthy.
Starbucks’ CEO, Brian Niccol, expressed optimism about the company’s “Back to Starbucks” turnaround strategy, stating that the recent sales growth is indicative of the strategy’s success in attracting both returning and new customers. This plan, which aims to revitalize the brand, included the closure of 627 retail locations and the reduction of 900 employees as part of a larger restructuring effort.
Following the financial report, shares of Starbucks rose by 2%, although the stock has experienced a 6% decline year-to-date in 2025. Analysts maintain a consensus Moderate Buy rating on Starbucks stock based on 21 ratings, which include 13 Buy recommendations, seven Holds, and one Sell. The average price target stands at $99.16, suggesting a potential 13.69% upside from current trading levels.
The mixed financial results highlight both challenges and hopeful signs for Starbucks as it continues to navigate through its turnaround strategy and adapt to changing market conditions.