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Starbucks Reports Disappointing Q2 Revenues, Shares Slip

In its fiscal second-quarter financial report, Starbucks (SBUX) delivered revenue and earnings figures that fell short of analysts’ forecasts, causing a decline in its stock during after-hours trading on Tuesday.

The coffee powerhouse recorded revenues of $8.76 billion, marking a 2% increase compared to the same period last year, yet this figure did not meet the expectations set by analysts from Visible Alpha. Additionally, the company’s adjusted earnings per share were 41 cents, a drop from 68 cents year-over-year, and also below the anticipated figures from Wall Street.

Furthermore, Starbucks experienced a 1% decrease in global same-store sales—a decline that exceeded analysts’ predictions of 0.5%. This downturn was attributed to diminishing transaction volumes, although it was somewhat balanced by an increase in the amount spent per transaction.

The report comes as Starbucks embarks on the third quarterly update under CEO Brian Niccol, who is implementing his “Back to Starbucks” strategy. This initiative focuses on enhancing the customer experience within stores, aiming to make cafes more inviting, ensuring that orders are completed within a four-minute timeframe, and reinstating a condiment bar for customer convenience.

“Improving transaction comparisons in a challenging consumer market highlights the resilience of our brand and the effectiveness of our team’s efforts to get ‘Back to Starbucks.’ We’re making progress, and I see even greater potential ahead than I initially anticipated,” Niccol remarked.

Following these announcements, Starbucks shares fell more than 6% in extended trading. As of Tuesday’s market close, the stock has seen a total decline of approximately 7% since the beginning of 2025.

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