Starbucks reported flat comparable store sales in Q4 amid widespread closures as it continues to restructure the business under its “Back to Starbucks” strategy.
In North America and the U.S., FY2025 comparable store sales declined 2%, driven by a 4% drop in comparable transactions and partially offset by average tickets up 2%.
Starbucks announced it had closed 627 stores since September 25, of which 90% were in North America. The company lowered its FY2025 store count in North America by about 1%.
Yet, the Seattle-headquartered coffee giant is also converting pickup locations and opening stores with a “new coffee house prototype with lower build costs and optimized space utilization,” said CEO Brian Niccol in the prepared remarks.
One pillar of the “Back To Starbucks” strategy was its implementation of Green Apron Service, which extended store hours and added staff to upgrade the company’s level of customer service.
“Across our U.S. company operating portfolio, we more than tripled the percentage of coffee houses with positive transaction comps from a year ago, with year-over-year transactions improving across all regions and day parts,” Niccol said. “Notably, U.S. sales comps turned positive in September, driven by transactions, and remained positive through October, reflecting the momentum taking shape in our business.”
Company leadership said its delivery business has grown nearly 30% year-over-year in Q4, surpassing $1 billion.
In response to a question about inflation and the elevated price of green coffee, Niccol said the company is “trying to find offsets,” but it is expecting commodity costs to remain a headwind through the first half of 2026.
As foodservice players seek to deepen their presence in quick-service beverage, Starbucks is facing rising competition from the likes of Chick-Fil-A and Dutch Bros. Coffee, the latter of which also recently announced an ambitious move into ready-to-drink products.
When asked how Starbucks is competing against “emerging beverage brands,” Niccol said that Starbucks has “to be on our best offense, and our best offense is to make sure that we stand for the craft around our coffee, drinks and food.”
Starbucks stock was up this morning by about 1.3% to around $85.25 per share.