Starbucks Reports Mixed Q3 Results Amid Turnaround Efforts

Starbucks' fiscal third-quarter earnings revealed a 4% revenue increase to $9.46 billion, beating expectations, but adjusted EPS plummeted 46% to $0.50. North American comparable sales remained stagnant at -2%, while international markets showed modest improvement.

CEO Brian Niccol framed the results as early signs of a turnaround, citing progress on operational challenges. "We're ahead of schedule on fixing the hard things," Niccol asserted, though acknowledged persistent headwinds from inflation and labor costs.

The coffee chain's Back to Starbucks initiative continues to weigh on margins. Investors appear caught between encouraging revenue growth and concerning profitability erosion, with international markets now outperforming the Core North American business.