Starbucks earnings: Company posts first quarter of US sales growth in 2 years as CEO Niccol says plan is 'working'
Starbucks earnings: Company posts first quarter of US sales growth in 2 years as CEO Niccol says plan is 'working'
Brooke DiPalmaWed, January 28, 2026 at 3:18 PM UTC
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Starbucks (SBUX) posted its first quarter of North America and US same-store sales growth in two years on Wednesday as the company continues its turnaround efforts under CEO Brian Niccol.
In its fiscal first quarter ended Dec. 28, Starbucks reported US and North America same-store sales rose 4%, topping estimates for a 2% rise. The increase was driven by a 3% increase in comparable transactions and a 1% increase in the average ticket.
"It is clear from our top line results that are back to Starbucks plan is working, and our turnaround is taking hold," CEO Brian Niccol said in a call with investors, adding that the viral Bearista Cup, healthier food choices, and a stronger value perception drove results.
Starbucks last reported positive same-store sales for its US and North America unit in the first quarter of its fiscal 2024. Starbucks stock rose more than 5% following the results.
The company also reported that same-store sales in China increased 7% in the latest quarter, more than the 2.5% increase Wall Street expected. Foot traffic was up 5% in the region, while the average ticket size was up 2%. Over 60% of Starbucks' store base is in the US and China. During the quarter, Starbucks sold a majority stake in its China business to Boyu Capital in a deal that valued the business at $4 billion.
Niccol said the partnership will help the coffee giant to "expand into more cities, deliver exceptional coffee experiences, create new career opportunities for partners and strengthen Starbucks' position as a global brand for long-term growth."
Global same-store sales posted a second consecutive quarter of growth, increasing by 4%, more than the 2% increase expected.
Overall, Starbucks reported adjusted earnings per share of $0.56, missing forecasts for earnings per share of $0.59. Revenue came in ahead of estimates, tallying $9.9 billion against expectations for $9.65 billion, according to Bloomberg data.
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Since Niccol took the helm, he's reduced the menu by 25% to 30%. He said Starbucks is now planning to introduce more "health and wellness" options and an "afternoon platform," including items like sparkling water and blended personalized energy drinks, as well as "snackable" protein and fiber options.
CHANGZHOU, JIANGSU, CHINA - 2026/01/17: The iconic green Starbucks logo hangs above the entrance of a mall location, with "Order Online, Pick Up In-Store" signage on the glass. (Photo by Sheldon Cooper/SOPA Images/LightRocket via Getty Images) (SOPA Images via Getty Images)
For the full fiscal year, the company expects same-store sales growth to increase by 3% or better, led by a 3% or better US same-store sales growth. It expects earnings to be in the range of $2.15 to $2.40.
"Our Q1 performance demonstrates the momentum that we're building in our business and gives us confidence we are on the right path," CFO Cathy Smith added on the call, "We remain focused on driving top line performance and managing our costs to deliver sustainable, profitable long-term growth."
It also expects to open between 600 to 650 new locations, including 150 to 175 in the US, after shuttering locations in late 2025.
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].
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