STARBUCKS’ GLOBAL COMPARABLE STORE SALES DROP IN APRIL-JUNE QUARTER

Wed 30 July 2025:

US coffee chain Starbucks’ global comparable store sales decreased a larger-than-expected 2% year-on-year in the April-June quarter, according to the firm’s financial results released Tuesday.

Comparable store sales in North America also fell by 2%.

Starbucks’ international comparable store sales were flat in the same period, while sales in China increased by 2%.

The coffee chain’s revenue rose 3.8% year-over-year to $9.5 billion in the three months ending June 29.

The company’s profit, however, dropped 47% to $558.3 million during the same period.

The coffee chain’s earnings per share also decreased 47.3% year-over-year to $0.49.

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Starbucks, one of the companies facing protests and boycotts over Israel’s attacks on Gaza, also reported its sixth consecutive quarterly decline in US same-store sales.

The boycotts linked to the Gaza war, starting in October 2023, significantly impacted Starbucks’ sales and operations. Sparked by Starbucks suing its Workers United union over a “Solidarity with Palestine” tweet, the boycott gained traction via the BDS movement and social media, with #boycottstarbucks amassing millions of views.

This led to a 4% drop in global same-store sales and a 15% decline in net income ($772 million) in Q2 2024, the worst since the pandemic. In the Middle East, franchisee Alshaya Group laid off 2,000 workers due to a 38% revenue drop in Malaysia and declines across Muslim-majority countries.

Starbucks also faced vandalism and protests globally, prompting a $3 million Gaza aid donation to counter reputational damage. Economic factors like inflation contributed, but boycotts were a key driver.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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