Starbucks’ ambitious “Back to Starbucks” turnaround strategy is beginning to bear fruit. The coffee giant announced on October 29, 2025, that global comparable store sales rose 1% in the quarter ending September 28 — the company’s first growth in seven quarters.
The company’s North America segment posted flat sales, while its international operations climbed 3%. Both figures represent major improvements over 2024, when North American sales were down 6% and international sales dropped 9%.
“We’re a year into our ‘Back to Starbucks’ strategy, and it’s clear that our turnaround is taking hold,” said Starbucks Chairman and CEO Brian Niccol. “The return to global comp growth gives me confidence that we’re on the right path.”
Key Performance Overview
| Metric | Q3 2025 Result | Q3 2024 Result | Change (YoY) |
|---|---|---|---|
| Global Comparable Sales | +1% | -7% | + 8 pts |
| North America Comparable Sales | 0% | -6% | +6 pts |
| International Comparable Sales | +3% | -9% | + 12 pts |
| U.S. & Canada Store Count | 18,300 (post-reduction) | 18,500 | – 1% |
| Renovation Plans | 1,000 stores | — | In progress |
According to Chief Financial Officer Cathy Smith, this quarter was “a milestone quarter in getting ‘Back to Starbucks.’” Smith emphasized that the turnaround is part of a multi-year effort to stabilize operations and restore growth:
“We remain focused on driving our topline while managing costs that are within our control to deliver durable, sustainable growth and long-term shareholder value,” she said.
Inside the “Back to Starbucks” Turnaround Strategy
When Niccol took the helm in 2024, Starbucks was grappling with slowing sales, operational inefficiencies, and customer experience inconsistencies. His “Back to Starbucks” plan, first outlined in a September 2024 letter, aims to refocus the brand on its foundational strengths while modernizing its operations for the digital age.
Core Pillars of the Turnaround Strategy
| Focus Area | Objective | Actions Taken |
|---|---|---|
| Barista Empowerment | Improve service quality and employee satisfaction | Provided new tools, streamlined processes, and better scheduling |
| Customer Experience | Reinforce Starbucks’ position as a “community coffeehouse” | Reintroduced personalized service and store-level autonomy |
| Supply Chain Optimization | Improve logistics and reduce waste | Revamped supplier contracts and inventory systems |
| Digital Platform Enhancement | Modernize the mobile ordering experience | Upgraded app capabilities and AI-powered recommendations |
| Store Footprint Optimization | Align physical locations with brand standards | Closed underperforming stores and began 1,000 renovations |
“We need to reestablish ourselves as the community coffeehouse,” Niccol said during the company’s 2024 earnings call, underscoring his vision to reconnect Starbucks with its cultural and experiential roots.
Strategic Store Closures and Renovations
As part of the brand’s rejuvenation, Starbucks announced plans to close approximately 1% of its stores in North America — about 200 locations — that did not align with its profitability or brand experience standards.
The company now operates 18,300 stores across the U.S. and Canada, with plans to add new stores strategically while renovating 1,000 existing locations to meet modern design, sustainability, and customer experience criteria.
These closures are not a retreat but a recalibration. “We’re ensuring every store offers an environment consistent with the Starbucks brand promise,” Niccol stated in a September announcement.
Global Growth Driven by International Markets
While North American performance has stabilized, Starbucks’ international business is now the engine of growth. The 3% increase in comparable sales was led by Asia-Pacific and Latin America, regions that are seeing growing middle-class populations and increased coffee culture adoption.
“Starbucks continues to resonate strongly in international markets where customers see it as an aspirational brand,” said Dr. Elaine Porter, Senior Analyst at Global Retail Insights. “Niccol’s localization strategy — adapting menus and experiences to regional preferences — has been key.”
In China, Starbucks is expanding its delivery partnerships and in-store technology, while markets like India and Brazil are seeing investments in new formats, such as compact express outlets.
Financial Discipline Meets Digital Innovation
The turnaround strategy isn’t just about operations — it’s about financial discipline paired with digital transformation. Starbucks has emphasized improving unit economics, tightening operating margins, and enhancing mobile engagement to boost profitability.
Digital channels now account for a growing share of transactions, with the Starbucks app and rewards program driving repeat visits. Niccol said that enhancing the app’s functionality was crucial to restoring customer loyalty:
“Digital isn’t replacing the coffeehouse — it’s enhancing it. It’s about offering customers choice, speed, and a sense of connection.”
Expert Analysis: Starbucks’ Path to Sustainable Growth
1. Brian Niccol, CEO, Starbucks:
“We’re on a multi-year journey to rediscover the essence of Starbucks — our people, our customers, and our communities. The early results show the strategy is working.”
2. Cathy Smith, CFO, Starbucks:
“This quarter’s global comp growth marks a turning point. It’s the result of discipline, consistency, and focus on controllable costs.”
3. Dr. Elaine Porter, Global Retail Insights:
“Starbucks’ focus on operational efficiency and local adaptation is restoring investor confidence. The next phase will test its ability to sustain momentum globally.”
4. David Han, Senior Market Strategist at EquityTrend:
“Niccol’s turnaround playbook mirrors his success at Chipotle — simplifying operations, elevating brand experience, and reestablishing cultural relevance.”
Why This Quarter Matters?
This quarter represents a critical validation point for Starbucks’ long-term strategy. After seven consecutive quarters of decline or stagnation, the company’s ability to post positive global comp growth signals that the fundamentals are improving.
If Starbucks can maintain its current trajectory — balancing cost control, digital innovation, and customer experience excellence — analysts believe it could return to mid-single-digit growth by late 2026.
“Starbucks’ turnaround isn’t about chasing trends,” said Dr. Porter. “It’s about rediscovering what made it iconic — the connection between people and coffee.”
Frequently Asked Questions
What is the “Back to Starbucks” strategy?
It’s CEO Brian Niccol’s multi-year turnaround plan focused on employee empowerment, customer experience, digital innovation, and operational efficiency.
How did Starbucks perform in the latest quarter?
Global comparable store sales rose 1%, marking the first positive growth in seven quarters.
What regions drove the growth?
The international segment posted a 3% increase, while North America remained flat but improved from last year’s 6% decline.
Is Starbucks closing stores?
Yes, Starbucks plans to close about 1% of underperforming stores in North America but will renovate 1,000 and open new, more efficient locations.
What’s next for Starbucks in 2026?
The company plans to expand digital engagement, optimize store layouts, and drive sustainable growth across emerging international markets.
Who leads Starbucks’ turnaround efforts?
CEO Brian Niccol and CFO Cathy Smith are spearheading the “Back to Starbucks” strategy.