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Will New Beverage Innovation Revive Starbucks' U.S. Comparable Sales?
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Key Takeaways
Starbucks' U.S. comparable sales fell 2% in Q3 2025, pressuring its core market performance.
The Back to Starbucks plan centers on beverage innovation tied to health and premium trends.
New drinks like protein cold foam and coconut water-based teas aim to boost transaction growth.
Starbucks Corporation (SBUX - Free Report) continues to face pressure in its core U.S. market, where comparable sales slipped 2% in the third quarter of fiscal 2025. Management is clear that turning around domestic performance will require more than operational fixes, it needs a wave of menu innovation to reenergize customers.
CEO Brian Niccol emphasized that the company is building momentum with its “Back to Starbucks” strategy, laying the groundwork for 2026 as the year of innovation. Starbucks is targeting beverages that align with consumer trends in health, customization and premium experiences.
A key launch is protein cold foam, a no-sugar option that adds 15 grams of protein to any cold beverage. Early testing showed strong demand, tapping into Cold Foam’s 23% year-over-year growth. Beyond that, Starbucks is experimenting with coconut water-based tea and coffee drinks, gluten-free and high-protein foods, and a new artisanal baked case to broaden appeal across dayparts.
The innovation push is carefully designed to avoid operational disruption. Starbucks is embedding barista feedback early in product development, ensuring drinks can be executed consistently within service time goals. By layering new beverages onto the newly rolled out Green Apron Service, a standardized operating model focused on speed and hospitality, the company hopes to pair menu excitement with a stronger in-store experience.
With Gen Z and millennial customers already driving engagement, Starbucks sees beverage innovation as a catalyst to restore positive transaction growth in the United States. While execution risks remain, the strategy signals that Starbucks is betting big on new drinks to reignite its sales momentum.
Competitors Raising the Bar in Beverage Innovation
Starbucks’ innovation drive comes as rivals intensify their beverage strategies. McDonald’s (MCD - Free Report) , through its McCafé lineup, has been expanding cold and specialty drink options at accessible price points. MCD’s nationwide footprint and value-driven approach allow it to capture customers seeking convenience and affordability, a direct challenge to Starbucks’ premium positioning.
Meanwhile, Dutch Bros Coffee (BROS - Free Report) continues to win younger consumers with its vibrant, customizable drinks and energy-based beverages. Its emphasis on drive-thru speed and community-centric brand appeal has fueled rapid expansion, making it a growing disruptor in the specialty beverage space.
With McDonald’s leveraging scale and value, and Dutch Bros resonating with Gen Z, Starbucks’ upcoming beverage innovations, from protein cold foam to artisanal offerings, will need to strike a balance between differentiation and broad appeal to revive U.S. comparable sales.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have lost 18.4% in the past six months compared with the industry’s decline of 7.6%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Starbucks trades at a forward price-to-sales ratio of 2.7, below the industry’s average of 3.81.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2025 EPS implies a decline of 32.6% year over year and the same for 2026 indicates a rise of 22.4%. The EPS estimates for fiscal 2025 and 2026 have declined in the past 30 days.
Image: Bigstock
Will New Beverage Innovation Revive Starbucks' U.S. Comparable Sales?
Key Takeaways
Starbucks Corporation (SBUX - Free Report) continues to face pressure in its core U.S. market, where comparable sales slipped 2% in the third quarter of fiscal 2025. Management is clear that turning around domestic performance will require more than operational fixes, it needs a wave of menu innovation to reenergize customers.
CEO Brian Niccol emphasized that the company is building momentum with its “Back to Starbucks” strategy, laying the groundwork for 2026 as the year of innovation. Starbucks is targeting beverages that align with consumer trends in health, customization and premium experiences.
A key launch is protein cold foam, a no-sugar option that adds 15 grams of protein to any cold beverage. Early testing showed strong demand, tapping into Cold Foam’s 23% year-over-year growth. Beyond that, Starbucks is experimenting with coconut water-based tea and coffee drinks, gluten-free and high-protein foods, and a new artisanal baked case to broaden appeal across dayparts.
The innovation push is carefully designed to avoid operational disruption. Starbucks is embedding barista feedback early in product development, ensuring drinks can be executed consistently within service time goals. By layering new beverages onto the newly rolled out Green Apron Service, a standardized operating model focused on speed and hospitality, the company hopes to pair menu excitement with a stronger in-store experience.
With Gen Z and millennial customers already driving engagement, Starbucks sees beverage innovation as a catalyst to restore positive transaction growth in the United States. While execution risks remain, the strategy signals that Starbucks is betting big on new drinks to reignite its sales momentum.
Competitors Raising the Bar in Beverage Innovation
Starbucks’ innovation drive comes as rivals intensify their beverage strategies. McDonald’s (MCD - Free Report) , through its McCafé lineup, has been expanding cold and specialty drink options at accessible price points. MCD’s nationwide footprint and value-driven approach allow it to capture customers seeking convenience and affordability, a direct challenge to Starbucks’ premium positioning.
Meanwhile, Dutch Bros Coffee (BROS - Free Report) continues to win younger consumers with its vibrant, customizable drinks and energy-based beverages. Its emphasis on drive-thru speed and community-centric brand appeal has fueled rapid expansion, making it a growing disruptor in the specialty beverage space.
With McDonald’s leveraging scale and value, and Dutch Bros resonating with Gen Z, Starbucks’ upcoming beverage innovations, from protein cold foam to artisanal offerings, will need to strike a balance between differentiation and broad appeal to revive U.S. comparable sales.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have lost 18.4% in the past six months compared with the industry’s decline of 7.6%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Starbucks trades at a forward price-to-sales ratio of 2.7, below the industry’s average of 3.81.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2025 EPS implies a decline of 32.6% year over year and the same for 2026 indicates a rise of 22.4%. The EPS estimates for fiscal 2025 and 2026 have declined in the past 30 days.
Image Source: Zacks Investment Research
Starbucks currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.