Starbucks reported $9.9 billion in revenue for the quarter ended December 28, surpassing consensus forecasts by roughly 2 percent, driven by a 4 percent gain in global comparable store sales. However, adjusted earnings per share of $0.56 fell short of the $0.58 consensus estimate, reflecting margin pressure from elevated labor investments and tariffs on key commodities. Despite a healthy 3 percent increase in U.S. transactions—the first growth in eight quarters—operating margins contracted by approximately 120 basis points year-over-year, prompting the stock to slip nearly 0.6 percent on Wednesday.

An independent security review commissioned by Starbucks identified credible threats to CEO Brian Niccol, resulting in a regulatory filing that eliminates the previous $250,000 annual cap on his personal use of the company’s private aircraft. Effective September 2025, all personal, commuting and business flights will be on the corporate jet, subject to quarterly review but with no spending limit reinstated. Under the new framework, Niccol must repay the incremental costs of non-commuting flights if the board deems reimbursement appropriate; last year, his total compensation package, including equity awards, amounted to approximately $31 million.

Under Chief Executive Niccol’s ‘Back to Starbucks’ plan, U.S. same-store sales rose 4 percent in Q1—its best performance in two years—while international comparable growth hit 5 percent. The company reported a 3 percent rise in U.S. transactions and a 1 percent increase in average ticket, driven by increased staffing, store updates and mobile-order sequencing improvements. Digital initiatives, including the rollout of the AI-powered Green Dot Assist and the hiring of former Amazon executive Anand Varadarajan as CTO, aim to drive further efficiencies. Management reiterated guidance for at least 3 percent same-store sales growth in fiscal 2026 and signaled margin recovery opportunities as tariff headwinds subside.