Starbucks touts turnaround in latest fiscal results
As Starbucks kicked off Investor Day in New York City on Thursday, the coffee giant highlighted improving sales and revenue.
The company said that in the most recent quarter ending in December, same-store sales rose by 4% and revenue increased by 6%, driven by holiday beverages, the annual Red Cup Day and the “Bearista” cup promotion. It marks Starbucks’ strongest financial performance since 2023.
Emphasis on appearance and customer service
Starbucks is investing hundreds of millions of dollars to upgrade the look and feel of its cafes while sharpening customer service — including a goal of preparing every drink in four minutes or less.
CEO Brian Niccol told CNBC, “This is really just the beginning,” referring to the company’s turnaround effort. He added that high-profile menu additions, including protein cold foam, have helped boost sales.
‘Back to Starbucks’ push
Niccol has led what the company calls the “Back to Starbucks” campaign, shifting focus back to the in-store experience by sprucing up cafes, increasing staffing and encouraging baristas to write friendly messages on cups after years of prioritizing mobile orders.
In a release, Niccol said, “Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule.”
The effort follows a restructuring plan announced in September that included closing more than 400 underperforming U.S. stores and laying off hundreds of corporate employees.
What’s ahead
For fiscal 2026, Niccol is projecting same-store sales growth of 3% or more.
CNBC reported Starbucks’ market value has slipped to $108 billion, with shares down roughly 5% over the past year as retailers navigate softer consumer spending, higher coffee prices and tariffs on imports.
Still, the company plans to open between 600 and 650 new cafes globally.
Starbucks currently operates 16,911 stores in the U.S. and about 8,000 in China, together accounting for more than 60% of its global footprint.
The Wall Street Journal also reported the company is looking to expand its lineup of energy drinks and afternoon food options.
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Ella Rae Greene, Editor In Chief
