Overview

• Starbucks reported a 660-basis-point operating margin plunge in the third quarter; U.S. same-store sales fell 2 percent; traffic dropped 4 percent; earnings per share tumbled 46 percent; the company issued no forward guidance.
• CEO Brian Niccol is investing $500 million in labor over the next year while focusing on staff training, store refurbishments and menu simplification to restore Starbucks’ customer experience.
• The Green Apron service model is being expanded nationwide this summer after an eight-week pilot in 1,500 stores aimed at boosting speed and consistency during peak hours.
• More than 600 Starbucks stores in the U.S. have voted to unionize and the National Labor Relations Board has accused the company of retaliating against pro-union employees, including the high-profile Memphis 7 case.
• Pressure on Starbucks’ underperforming stock, down nearly 5 percent in 2025 versus an 89 percent five-year gain for the S&P 500, has intensified calls to expand delivery as a growth driver.