Starbucks reported a 4% year-over-year increase in U.S. comparable same-store sales in its fiscal first quarter, driven by a mix of higher average ticket and the first uptick in global store traffic in two years. Management highlighted that traffic gains were broad-based across core markets, with China comparable sales rising mid-single digits as mobility restrictions eased. The company’s newly introduced menu innovations and loyalty promotions contributed to a 5.5% increase in total revenue to $9.92 billion, exceeding the consensus outlook of $9.62 billion.

In the third quarter, Terra Alpha Investments LLC added 6,406 shares to its Starbucks position, bringing its total holding to 42,273 shares—a 17.9% increase. The stake, valued at $3.576 million per the latest SEC filing, represents approximately 3.6% of Terra Alpha’s portfolio and ranks Starbucks as the fund’s 12th largest holding. This move underscores growing institutional confidence in the coffee chain’s turnaround strategy; overall, hedge funds and other institutions now own more than 72% of the company’s outstanding shares.

Starbucks delivered adjusted earnings per share of $0.56 for the quarter, slightly below the $0.59 consensus, while reporting a net margin of 3.63% and a negative return on equity of 28.66%. Despite the EPS miss, operating profit rose modestly as management narrowed the gap between the 50-day and 200-day moving average of profitability metrics. The company reaffirmed its full-year EPS guidance range of $2.15 to $2.40 and set FY 2028 targets of over 5% annual sales growth and operating margins of 13.5%–15%, reflecting management’s focus on margin expansion through cost discipline and menu optimization.