Starbucks reported first-quarter revenue of $9.92 billion, exceeding consensus by $300 million, but earnings per share of $0.56 fell three cents short of analyst forecasts. Global comparable store sales grew 4% year-over-year, marking the second consecutive quarter of positive comps and the first U.S. transaction growth in eight quarters. Despite the top-line beat, operating income contracted and EPS declined 19% from the prior year, driven by elevated input costs and tight coffee futures markets. The stock initially jumped 5% on the surprise revenue beat before retreating as investors weighed margin pressures and questioned the sustainability of CEO Brian Niccol’s service-led turnaround.

At its 2026 Investor Day, management laid out a financial framework through fiscal 2028 calling for at least 5% consolidated net revenue growth, 3% global comparable store sales growth and 2%–3% of revenue contribution from new stores. The plan envisions adding over 2,000 net new locations—including 400 in the U.S.—while lifting non-GAAP operating margins to 13.5%–15% and achieving non-GAAP EPS of $3.35 to $4.00. Executives highlighted milestone achievements such as fully rolling out the Green Apron Service model in North America, delivering sub-four-minute peak throughput, and completing over 200 store remodels to enhance the coffeehouse experience.

Starbucks plans to open approximately 650 new stores this year, bringing total U.S. locations to more than 16,600. However, investors remain focused on the productivity of legacy stores: every one-percentage-point shift in U.S. same-store sales across 16,000 units equates to hundreds of millions in revenue impact. While China saw 7% comp growth, U.S. comps held at 4%, underscoring the need for sustained ticket and traffic improvement. Cowen & Co. maintained a “Hold” rating and raised its price target to $89, reflecting cautious optimism around expansion risk and domestic demand trends.

Beginning March 10, Starbucks will relaunch its Rewards program with three tiers—Green, Gold and Reserve—to incentivize more frequent visits and higher spend. The new structure offers tiered star-earning rates (1.0–1.7 stars per dollar) and benefits such as non-expiring stars for higher tiers, exclusive merchandise events and a new 60-star reward tier for $2 off any purchase. With 35.5 million active U.S. members driving nearly 60% of revenue, management expects the enhanced loyalty framework to bolster visit frequency, increase average tickets and unlock incremental revenue through deeper personalization and premium experiences.