Starbucks reported $9.91 billion in revenue for its fiscal first quarter, exceeding consensus revenue forecasts by roughly 2.6%, but delivered adjusted EPS of $0.56, falling short of the $0.59 consensus. Global comparable store sales rose 4%, driven by a 4% increase in North America and a 5% rise in international markets. U.S. comparable transactions grew 3%, marking the first increase in eight quarters, while average ticket grew 1%. Despite top-line strength, margin contraction from higher labor and coffee costs led to the earnings shortfall, underscoring ongoing pressure on profitability even as customer traffic rebounds.

In a regulatory filing, Starbucks disclosed that an independent security review identified credible threats to CEO Brian Niccol, prompting removal of the prior $250,000 annual cap on his personal use of the company’s private aircraft. Effective immediately, all of Niccol’s air travel—personal, commuting and business—must utilize Starbucks’ jet fleet. Personal flight costs will undergo quarterly board review, and any incremental expense deemed inappropriate will require reimbursement. Niccol, who joined Starbucks in September 2024, earned approximately $31 million in total compensation last year.

Under Niccol’s “Back to Starbucks” plan, digital platforms and in-store enhancements have accelerated growth ahead of schedule. The company reported its best U.S. same-store sales performance in two years, with a 4% rise in transactions and a 1% ticket lift. Investment in AI-powered tools, including a generative virtual assistant deployed across North American cafes, has eased mobile order bottlenecks. Starbucks also plans to redecorate over 1,000 stores by fall, expand its rewards program and leverage technology efficiencies in supply chain and support centers, aiming to convert renewed traffic momentum into sustainable margin recovery.