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. — Image credit: John Keeble/Getty Images

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Summary

Starbucks' key numbers

Starbucks says same-store sales rose 4% last quarter, while revenue climbed 6%.

Upbeat outlook

The optimistic outlook comes as the company rolls out its “Back to Starbucks” campaign, focused on refreshed cafes and stronger in-person service.

Plan to add coffeehouses

The company plans to open between 600 and 650 new coffeehouses in 2026.

Full story

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.

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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.

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.

Craig Nigrelli

Craig Nigrelli is an anchor and reporter for Straight Arrow News.

Tags: Starbucks

Why this story matters

Starbucks' renewed focus on in-store experiences and operational changes indicates a strategic effort to boost revenue and adapt to changing consumer habits amid economic challenges and increased market competition.

In-store experience

Starbucks is shifting focus from digital to in-store customer service, investing in upgrades and aiming for faster service, which may shape its ability to attract and retain customers.

Business strategy

According to CEO Brian Niccol, Starbucks is enacting the "Back to Starbucks" strategy, including store improvements, menu innovations and a restructuring that may impact long-term profitability and workforce structure.

Market challenges

The company faces declining market value, softer consumer spending and higher costs, motivating ongoing adaptation and global expansion to remain competitive.

Get the big picture

Synthesized coverage insights across 48 media outlets

Context corner

The turnaround effort, called "Back to Starbucks," was implemented by CEO Brian Niccol to restore growth after nearly two years of declining or stagnant sales, emphasizing faster service, a simplified menu and store updates.

Do the math

Starbucks' revenue for the quarter was $9.9 billion (up 6% year-over-year). Same-store sales were up 4% globally and in the US, transactions increased by 3% and average spend per visit rose 1%. Adjusted earnings per share were $0.56.

Oppo research

Opponents and critics, particularly from labor organizations, have pointed out issues such as store closures and ongoing concerns about working conditions, leading to strikes even as the company reported sales growth.

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Sources

Bias comparison

Media outlets on the left emphasizes Starbucks' positive "turnaround" and "momentum," using terms like "accelerate" and "gaining steam" to highlight sales growth.
Media outlets in the center , while acknowledging "demand rebounds," crucially detail a 62% "plunge" in net profit, attributing it to "tariffs and labor investments"—a significant figure de-emphasized by both left and right.
Media outlets on the right portray "strong" sales, attributing success to "holidays and a viral bear cup," de-emphasizing broader corporate strategy.

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Media landscape

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48 total sources

Key points from the Left

Starbucks reported a 4% increase in same-store sales for the October-December period, exceeding Wall Street's expectation of 2.3%, according to analysts polled by FactSet.
Revenue rose by 6% to $9.9 billion for the quarter, surpassing Wall Street's expectation of $9.65 billion.
Despite a strike by over 1,000 unionized workers to disrupt Starbucks' Red Cup Day, U.S. traffic increased and some stores were only briefly closed.

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No coverage from Far Left sources 0 sources
No coverage from Left sources 0 sources
See Hide headlines from Lean Left sources 9 sources

Key points from the Center

On Wednesday, Starbucks Corporation reported global same-store sales rose by 4% and net sales increased by 6% to $9.92 billion for the quarter ended Dec. 28.
CEO Brian Niccol has emphasized reviving the coffeehouse experience, and Starbucks trimmed nearly 30% of U.S. menu offerings last year to focus on key lattes.

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See Hide headlines from Center sources 22 sources

Key points from the Right

Starbucks reported a 4% rise in same-store sales for the October-December period, exceeding Wall Street's expected 2.3%, according to analysts polled by FactSet.
Revenue increased by 6% to $9.9 billion for the quarter, beating Wall Street expectations of $9.65 billion.

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