Starbucks 3 88% Drop Amid Mixed Earnings and 83rd-Tier Volume Plunge

On July 31, 2025, Starbucks (SBUX) fell 3.88% with a trading volume of $1.5 billion, a 63.91% decline from the prior day’s volume, ranking it 83rd in market activity. The stock’s performance followed mixed third-quarter fiscal 2025 earnings, where revenue exceeded estimates but earnings fell short, driven by a 2% global decline in comparable store sales. U.S. comps dropped 2%, with transaction volume down nearly 4%, as management cited the challenge of lapping aggressive prior-year discounting that had inflated sales artificially. Despite this, U.S. company-operated transaction comps improved for three consecutive quarters, and non-Rewards customer growth marked a positive trend since the pandemic recovery.

Starbucks reported a 2% increase in average ticket size, reflecting a strategic shift away from deep discounting. The company reduced discounted transactions by a third to enhance customer value perception, particularly among younger demographics. International performance was buoyed by China’s 2% comp growth, supported by beverage innovation and stronger delivery sales. Management acknowledged an uncertain consumer environment for the fourth quarter but expressed confidence in operational improvements, including the expansion of its “Green Apron Service” model, expected to stabilize sales growth by fiscal 2026.

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