Starbucks said Tuesday it’s confident that improved store operations and new products — including a cold foam protein drink — will soon help turn around the company’s lagging U.S. sales.
In the meantime, slow U.S. demand continues to be a drag on the company’s results.
Starbucks reported that its revenue rose 4% to $9.5 billion in its fiscal third quarter. That was better than the $9.3 billion Wall Street expected, according to analysts polled by FactSet.
But same-store sales, or sales at locations open at least a year, fell 2% in the April-June period. That was a bigger decline than Wall Street expected, and it was the sixth straight quarter that the Seattle-based company reported lower same-store sales.
Same-store sales were up in China, Starbucks’ second-largest market. Starbucks has been looking for a partner that can help it expand in China, particularly in smaller cities. Chairman and CEO Brian Niccol said Starbucks was evaluating around 20 offers.
“We remain committed to our China business and want to retain a meaningful stake,” Niccol told investors during a conference call on Tuesday. “The intense interest in partnering with us is a testament to the great team, strong brand and long-term opportunity for Starbucks in China. It really is a vote of confidence.”
But even as its sales picked up in China, Starbucks' same-store sales in the U.S. fell 2% in in the April-June period. U.S. customers spent more per order, but transactions fell 4%, the company reported.
Niccol expressed optimism about a new program setting hospitality standards and staffing levels to better handle peak hours. The “Green Apron Service” model showed so much promise in an eight-week test at 1,500 stores that Starbucks plans to roll it out across the U.S. starting in mid-August, the company said.
New software is also helping stores sequence orders, cutting down on wait times. Niccol said 80% of in-store orders are now made in four minutes or less, a target he set last fall.
“I think we’ll become famous for Green Apron Service and be the defining customer service company that I think Starbucks should be,” Niccol said.
Niccol said improving store operations and paring back Starbucks' menu was necessary before layering in new products. In addition to protein drinks, Starbucks plans to introduce new baked goods and a new dark roast coffee next year. It will also test beverages made with coconut water, customizable energy drinks, and gluten-free and high-protein foods.
Niccol said Starbucks has been working closely with employees to develop new food and drink items that can be prepared quickly and consistently. In the past, he said, the company would often develop new menu items at its headquarters and then hope baristas figured out how to make them.
“Those days are over,” Niccol said.
Niccol said Starbucks is also trying to encourage customers to linger in its stores. It's closing or modifying some of its approximately 90 mobile order-only storefronts and it is developing a store prototype with 32 seats and a drive-thru window that costs 30% less than the company's current store design.
Starbucks is spending heavily to turn itself around. One big expense in the third quarter was a two-day meeting in Las Vegas where the company hosted 14,000 store managers and regional leaders.
The company said its net income fell 47% to $558 million in the April-June period. Adjusted for one-time items, its earnings fell 46% to 50 cents per share for the quarter. That was lower than the 65 cents analysts had forecast.
Starbucks shares rose 3% in after-hours trading.
FILE - This is the Starbucks sign on Black Friday shoppers line at a Starbucks kiosk in the Walden Galleria in Buffalo, NY., Friday, Nov. 29, 2024. (AP Photo/Gene J. Puskar, File)
SAN FRANCISCO (AP) — Coach Steve Kerr spoke with Warriors forward Jonathan Kuminga during the morning shootaround Thursday about the player's situation being out of the rotation for more than a month now with expectations he will be traded before the deadline next month.
“We talked this morning and that’s all private,” Kerr said. “I will keep coaching him, he’ll be part of the team, he’ll be here. It is what it is.”
Kerr discounted any issues between them as being reason Kuminga has reportedly requested a trade from the team after not being used in the last 14 games since Dec. 18 and 17 of 18 — though he has been listed as injured for nine games this season.
“Our relationship is fine,” Kerr said before Golden State's 126-113 win over the New York Knicks. “There's not a whole lot I can say about the other stuff. It is what it is, difficult situation for everybody and part of this league, part of the job. We just keep moving forward.”
Kuminga has been training much of the time on his own, shooting on the Warriors’ practice floor out of the eyes of fans at Chase Center. He wears a black hood over his head on the end of the bench during games. Perhaps Kuminga and the Warriors weren't a great fit from Day 1 — not that it's his fault — and he might be eager to leave and start fresh elsewhere. If so, the Golden State brass might want to make sure he doesn't get hurt before trying to trade him.
Yet nobody has taken issue with his work ethic, at least not publicly. Kuminga, selected seventh overall in the 2021 draft, has been known to stay long after games shooting on the arena's main floor.
“It’s not a distraction at all. It’s a very unique situation but our job is just to keep playing, keep winning, it’ll resolve itself one way or the other,” Stephen Curry said.
The 23-year-old from the Democratic Republic of the Congo has appeared in just 18 games total with 13 starts, averaging 11.8 points, 6.2 rebounds and 2.6 assists.
On Sept. 30, he agreed to a two-year contract that could be worth up to $46.5 million if the team were to exercise its option for 2026-27. Kuminga had had a $7.9 million qualifying offer in hand since June 29 but was also weighing other options and he missed media day.
He has long had the support and confidence of teammates — like Jimmy Butler saying he has been having Kuminga over and continuing to encourage him.
“We love JK in this locker room, that's not going to change,” Butler said postgame. “If he happens to not be in here, we'll still rock with JK. I speak for everybody. We love the guy. I wish him the best here, I wish him the best wherever. It doesn't change. We don't listen to the noise, I hope he don't listen to the noise he keep coming here with a smile doing what he's supposed to do and being the ultimate pro.”
Kuminga missed much of last season with a right ankle injury. He averaged 15.3 points, 4.6 rebounds and 2.2 assists in 24.3 minutes over 47 games with 10 starts. He also scored 15.3 points per game over eight playoff games while shooting 48.4% from the floor and making 40% of his 3-point attempts. That included a career-best 30-point performance in Game 3 of the Western Conference semifinals against the Minnesota Timberwolves.
Kerr said the uncertainty around Kuminga's future “won't be a distraction.”
“Jonathan's a great young guy, his teammates like him,” Kerr said. "He's handling himself well.”
AP NBA: https://apnews.com/NBA
Golden State Warriors forward Jonathan Kuminga, middle, sits near the team bench during the first half of an NBA basketball game against the New York Knicks in San Francisco, Thursday, Jan. 15, 2026. (AP Photo/Jeff Chiu)
Golden State Warriors forward Jonathan Kuminga (1) and Utah Jazz center Oscar Tshiebwe (34) swap jerseys after the Warriors defeat the Jazz during an NBA basketball game, Saturday, Jan. 3, 2026, in San Francisco. (AP Photo/Justine Willard)
