Business Brands

Starbucks stock drops as revenues disappoint

by The Curator

Updated June 02, 2025

Starbucks stock drops as revenues disappoint

Starbucks shares fell late on Tuesday after the global coffee-shop chain reported a big drop in revenue and profit.

The second quarter results disappointed Wall Street as the Seattle-headquartered coffee giant saw a 4% drop in same-store sales, alongside a 6% decline in foot traffic to its outlets.

Group revenue was down nearly 2% to $8.56 billion, significantly below Wall Street estimates of $9.13 billion.

Starbucks said net income for the quarter was $772 million, equating to 68 cents per share, and it was down 15% from this time last year. Wall Street forecasts expected 79 cents per share.

As a reaction, the share price fell 10% in 'afterhours' trading.

Laxman Narasimhan, Starbucks' chief executive, told investors that the results " do not reflect the power of our brand, our capabilities, or the opportunities ahead".

Instead, he blamed "a highly challenging environment".

He added that the company has a clear plan to address its challenges and it will focus on executing that plan.

Explore Bias:

Financial media reporting focuses on Starbucks' financial struggles and the broader economic context of its disappointing performance.

Some outlets emphasize the sharp stock price drop, potentially highlighting investor concerns more than operational details. Other reports, whilst reporting the same facts, frame it as a temporary setback, yet some analysis point to the potential for more systemic issues within the company.

All reports come immediately after the release of the figures and will be followed up in due course with more considered, analytical detail.

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