Starbucks Shares Rise on Revenue Growth Despite Global Sales Decline

Starbucks reported a mixed fiscal third quarter in 2025, with revenue rising 4% year-over-year to $9.46 billion, surpassing analyst expectations, while adjusted earnings per share fell 46% to $0.50, missing estimates. Global same-store sales declined by 2%, marking the sixth consecutive quarter of decline, though the Chinese market showed a 2% increase, the first growth in over a year. CEO Brian Niccol expressed optimism about the company's turnaround plan, stating it is progressing faster than anticipated, supported by initiatives such as reducing wait times, redesigning stores, and enhancing customer engagement. Notable strategies include the "Back to Starbucks" plan, which focuses on speeding service and increasing customer time in cafes, alongside operational efficiencies like algorithm-driven order sequencing and expanded free refills. Despite the ongoing sales challenges, improvements in employee engagement, customer connection, and a positive outlook on the China business, which has attracted interest from potential buyers, contributed to a 4% rise in Starbucks' stock during after-hours trading. Analysts and investors remain cautiously optimistic but seek more details on the timeline and costs related to the transformation efforts.