Starbucks reported net revenues of $9.9 billion for its fiscal first quarter, a 6 percent increase year-over-year and above the consensus estimate of $9.65 billion. This performance was driven by the first U.S. comparable-sales growth in two years, with global same-store sales up 4 percent—powered by a 3 percent rise in transactions and a 1 percent increase in average ticket. International markets also contributed, with a 5 percent increase in comparable-store sales and a standout 7 percent gain in China following the pending joint venture with Boyu Capital.

Despite top-line strength, Starbucks’ GAAP operating margin contracted by 290 basis points to 9.0 percent, while non-GAAP margin fell 180 basis points to 10.1 percent. Rising input costs—particularly elevated coffee pricing and tariffs—along with labor investments under the “Back to Starbucks” plan and one-time restructuring expenses in the U.S. drove the decline. GAAP earnings per share slid 62 percent to $0.26, and non-GAAP EPS of $0.56 missed the Zacks consensus of $0.58, down 19 percent from a year ago.

Starbucks opened 128 net new stores during the quarter, ending with 41,118 locations worldwide—61 percent company-operated and 39 percent licensed—with the U.S. and China accounting for 16,911 and 8,011 stores respectively. The company is executing its “Back to Starbucks” turnaround by closing underperforming kiosks, investing in barista training, simplifying menus and enhancing loyalty rewards. In China, the planned sale of a 60 percent stake to Boyu Capital not only drove a discrete tax charge but also freed up capital and operational focus for rapid expansion in that market.

Starbucks reaffirmed its full-year targets, forecasting at least 3 percent growth in comparable-store sales globally and in the U.S., with consolidated net revenues rising at a similar pace. Non-GAAP earnings per share are projected between $2.15 and $2.40, and the company expects to open approximately 600–650 net new stores. The board declared a quarterly cash dividend of $0.62 per share, marking 63 consecutive quarters of payouts and underscoring management’s commitment to returning capital to shareholders.