Starbucks suffers global sales drop as protests brew

Global coffee giant Starbucks reported a sharper-than-expected 2% decline in comparable store sales worldwide for the April to June 2025 quarter, highlighting growing challenges in its key markets.

Sales in North America, which includes its largest market, also dropped 2%, marking the company’s sixth consecutive quarterly decline in same-store sales in the United States.

Internationally, sales were flat, while China—its second-largest market—posted a modest 2% increase in comparable store performance.

Despite these headwinds, the company’s revenue rose 3.8% year-over-year to USD9.5 billion for the three-month period ending June 29, driven by store expansion and pricing strategies. However, profitability took a major hit.

Starbucks’ net income fell 47% to USD558.3 million, and its earnings per share plummeted 47.3% to USD0.49 compared to the same period last year.

The sales slump comes as the company continues to face public backlash and boycotts in various regions over its perceived links to the Israel-Gaza conflict—adding further pressure to a brand once known for its global resilience.

With demand cooling and controversies heating up, Starbucks now faces the challenge of stirring renewed interest while regaining consumer trust in an increasingly competitive and politically charged landscape.