Starbucks is making headlines as its stock experiences an upsurge, thanks to a notable increase in customer traffic for the first time in two years.
On December 2, 2025, pedestrians were seen gliding down an escalator, passing under the iconic Starbucks logo in Manhattan, New York City.
According to a report released on Wednesday, Starbucks has delivered mixed results for its latest quarterly performance. While the company reveals that its turnaround strategy is successfully enhancing customer traffic, it simultaneously puts pressure on its profit margins.
CEO Brian Niccol expressed optimism in a statement, saying, "Our Q1 results illustrate that our 'Back to Starbucks' initiative is yielding positive results, and we believe we are progressing faster than anticipated. It’s encouraging to witness sales momentum as more customers choose Starbucks more frequently, and we see this as just the start of our journey."
In another significant update, Starbucks unveiled its financial outlook for fiscal 2026, marking its first forecast since it paused projections back in October 2024. The coffee giant anticipates adjusted earnings per share to land between $2.15 and $2.40, which falls slightly below Wall Street's average estimate of $2.35 per share, according to LSEG data. Additionally, Starbucks expects a minimum growth rate of 3% in same-store sales both globally and within the United States.
In premarket trading, shares surged over 8%, reflecting investor confidence.
To provide a clearer picture, here are the key figures from the company's quarter ending December 28, juxtaposed against analyst expectations compiled by LSEG:
* Earnings per Share: Adjusted earnings came in at 56 cents, marginally below the anticipated 59 cents.
* Revenue: The company reported revenue of $9.92 billion, outpacing expectations of $9.67 billion.
Starbucks indicated a net income of $293.3 million for the fiscal first quarter, translating to 26 cents per share. This is a decline from the previous year’s net income of $780.8 million, or 69 cents per share, largely due to costs associated with the turnaround strategy, alongside rising coffee prices and tariffs that impacted profit margins during the quarter. When excluding costs related to restructuring and impairments, the earnings stood at 56 cents per share.
Sales figures saw a 6% increase, reaching $9.92 billion, driven by the company achieving its second consecutive quarter of same-store sales growth. Notably, global same-store sales grew by 4%, significantly surpassing StreetAccount’s estimate of 2.3%. Traffic increased by 3%, representing the first surge in transactions over the past two years.
In the U.S., same-store sales also rose by 4%, buoyed by strong demand for seasonal offerings such as the popular "Bearista" cup and classic items like the peppermint mocha. Earlier in November, Niccol had declared the launch of the holiday menu as the most successful day ever for Starbucks in North America.
Internationally, same-store sales outside the U.S. climbed by 5%. Notably, in China, which ranks as Starbucks' second-largest market, same-store sales soared by 7%. During this quarter, the company announced a plan to establish a joint venture with Boyu Capital to manage its operations in China, with the deal expected to finalize by the second quarter of fiscal 2026, pending regulatory approvals.
Starbucks’ forecast for fiscal 2026 includes the continuity of its retail operations in China for the latter half of the fiscal year.
Furthermore, the company opened 128 new locations during this quarter. Looking ahead, Starbucks is aiming to launch between 600 to 650 new company-owned and licensed cafes in fiscal 2026, a move that follows the closure of roughly 400 U.S. locations last year.
Investors are eagerly awaiting further insights into Niccol's strategic vision during an investor day scheduled for Thursday in New York City, where executives are set to unveil new long-term financial goals.
