Starbucks Slides to 167th in Trading Volume Amid U.S. Sales Drop, Bets on Beverage Innovation for Recovery

On August 19, 2025, Starbucks (SBUX) closed down 1.74% with a trading volume of $0.58 billion, ranking 167th in market activity. The stock has declined 18.4% over the past six months, underperforming the broader industry’s 7.6% drop. A forward price-to-sales ratio of 2.7 underscores its valuation discount relative to peers, though analysts note a 32.6% year-over-year decline in fiscal 2025 earnings per share and a projected 22.4% rebound in 2026.

Starbucks faces ongoing pressure in its U.S. market, where third-quarter comparable sales fell 2% in fiscal 2025. CEO Brian Niccol emphasized a pivot to beverage innovation under the “Back to Starbucks” strategy, targeting health-conscious and premium experiences. Launches like protein cold foam—offering 15 grams of sugar-free protein—have shown early demand, leveraging Cold Foam’s 23% annual growth. The company is also testing coconut water-based drinks, gluten-free options, and artisanal baked goods to broaden daypart appeal. Operational integration of these innovations with the Green Apron Service model aims to maintain service speed while enhancing in-store experiences.

Despite these efforts, execution risks linger as competitors intensify. Strategic focus on Gen Z and millennial engagement remains critical, but market share challenges persist amid rising costs and margin compression. Analysts highlight the need for differentiation amid a crowded beverage landscape.

A backtest of a strategy purchasing the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 yielded a 1.98% average daily return. Over the past year, the total return was 7.61%, with a Sharpe ratio of 0.71, indicating modest risk-adjusted performance.