Dive Brief:

• Starbucks saw U.S. comparable store sales decline 2% in its Q3 fiscal year 2025 for the period ended June 29, per its latest earnings report. The decline was partially offset by a 2% increase in average ticket.
• CEO Brian Niccol cited marketing as one of the factors, alongside operational improvements, that is helping to drive the brand’s turnaround efforts, which he said are ahead of schedule.
• Despite notching its sixth straight quarter of same-store sales declines, Starbucks beat Wall Street revenue estimates and is seeing improvements in customer value perceptions of the brand.

Dive Insight:

Starbucks’ same-store sales are still in decline, but the chain and CEO Niccol are confident that its “Back to Starbucks” turnaround effort is working. Along with operational improvements as part of its Green Apron Service roll out, the executive said marketing is having a positive effect on the business.

“We've got a couple of things working in our favor, much better marketing and I think a stronger operating system right now, and I think we're going to continue to drive against both of those things going forward,” he said on the earnings call.

Customer value perceptions of Starbucks are near two-year highs, driven by gains among Gen Z and millennial consumers who make up over half of the brand’s customer base, which Niccol said were a sign that the chain’s marketing is working.

The chain saw growth in nondiscounted transactions among rewards members, and non-rewards customers delivered transaction growth year-over-year for the first time since the post-pandemic recovery. Starbucks has 34 million 90-day active members in its rewards program, and it is planning “significant” improvements for early 2026, including features focused on growing loyalty, brand love and engagement.

Starbucks this year has made significant investments in marketing as part of its turnaround efforts. The chain in January began airing a spot, set to The Ting Ting’s song “That’s Not My Name,” focused on how Starbucks baristas write names and messages on customer cups. A spot that aired during the Super Bowl pre-game show looked to reintroduce the brand’s story and identity — an effort Niccol said during a previous earnings call was resonating with consumers. 

Both spots were created with Stagwell-owned agency Anomaly, which won Starbucks’ creative business at the top of the year just months after the chain handed those duties to WPP — one of many setbacks the holding company has faced this year.