In Q3 2025, Starbucks saw U.S. store sales drop 2%, with transactions down nearly 4%, while China comps rose 2%, driven by 6% more transactions and beverage innovation. The company is relying on China’s growth to balance softer U.S. results, with local pricing and delivery growth boosting momentum in China. Despite U.S. challenges, China’s innovation and strength in delivery offer a counterbalance. Starbucks’ stock has risen 21.7% in the past year, outperforming the industry. Competitors Dutch Bros and Chipotle have also seen stock movement, with Starbucks trading at a lower forward price-to-sales ratio than the industry average. Analysts predict a decline in Starbucks’ fiscal 2025 EPS, followed by a rise in fiscal 2026 EPS, with the stock currently rated as a Zacks Rank #4 (Sell).

Read more at Zacks Investment Research: Can China Momentum Balance Starbucks’ U.S. Comps Challenges? – August 8, 2025