Starbucks Reports $37.2 Billion Revenue for Fiscal Year 2025, Operating Income Declines

Starbucks Corporation reported a total revenue of $37.2 billion for the fiscal year ending September 28, 2025, marking a 3% increase from $36.2 billion in the previous fiscal year. The growth was primarily driven by new company-operated store openings and increased revenue from the Global Coffee Alliance, despite a decline in comparable store sales and licensed store revenues. Operating income, however, decreased significantly to $2.9 billion, down from $5.4 billion in fiscal 2024, resulting in an operating margin of 7.9%, a contraction of 710 basis points attributed to restructuring costs and inflationary pressures.

In terms of strategic developments, Starbucks implemented its "Back to Starbucks" strategy, which included a restructuring plan that led to the closure of 627 coffeehouses. This initiative aimed to enhance customer experience and operational efficiency. The company also acquired 23.5 Degrees Topco Limited, converting 113 licensed stores to company-operated locations, which contributed to the revenue growth in the International segment, which saw a 7% increase in revenue compared to the previous year.

Operationally, Starbucks employed approximately 381,000 people worldwide as of September 28, 2025, with about 223,000 in the U.S. The company operated 21,514 stores globally, with 11,018 in North America and 10,496 in international markets. The North America segment accounted for 74% of total revenues, while the International segment contributed 21%. The company also reported a decline in customer transactions, with a 4% decrease in comparable transactions in North America, although average ticket prices increased by 2%.

Starbucks anticipates continued macroeconomic challenges, including fluctuating coffee prices and new tariffs, but remains optimistic about the potential of its "Back to Starbucks" initiatives to drive future growth. The company plans to focus on enhancing the customer experience through its Green Apron Service model and is looking forward to its new joint venture with Boyu Capital to accelerate growth in China. Starbucks aims to leverage its investments in store partners and product innovation to ensure long-term sustainable growth.