Starbucks Corp. (NASDAQ:SBUX) is signaling a confident stride in its “Back to Starbucks” turnaround strategy under CEO Brian Niccol, despite reporting a significant squeeze on third-quarter fiscal year 2025 profits.
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What Happened: The company’s consolidated net revenue reached $9.5 billion, a 3% increase year-over-year, yet global comparable store sales declined by 2%.
This profit contraction is largely attributed to substantial investments in the foundational “Back to Starbucks” plan, including an allocation of over $0.5 billion in additional labor hours over the next year and a one-time investment in its Leadership Experience 2025 event.
“It’s clear, Back to Starbucks is the right plan. It is grounded in feedback from our customers and partners, and it’s rooted in what has always set us apart,” stated Brian Niccol during the earnings call.
The strategy prioritizes operational improvements. The “Green Apron Service” model, which Starbucks calls its “biggest investment ever in operating standards and customer service,” is now accelerating its rollout across all U.S. company-operated coffeehouses by mid-August.
Early pilots …