Starbucks Q1 Same-Store Sales Climb 4% as Revenue Tops $9.9B
Starbucks achieved 4% global same-store sales growth in Q1—its first U.S. comparable-sales increase in two years—with U.S. transactions up 3%, ticket sizes up 1% and revenue rising 6% to $9.9 billion. The company has redecorated 200 stores, plans over 1,000 more by fall, and forecasts 3%+ sales growth in fiscal 2026.
1. Strong Sales Rebound Signals Turnaround Progress
Starbucks reported its first sustained sales growth in eight quarters during the fiscal first quarter ended December 28, with global comparable store sales up 4%. In North America, same-store sales rose 4% driven by a 3% increase in transactions and a 1% rise in average ticket, marking the best U.S. performance in two years. International markets also showed strength, with comparable sales up 5%. Quarterly revenue climbed to $9.91 billion, a 5.5% year-over-year increase, though adjusted earnings per share of $0.56 fell short of the consensus estimate of $0.58. Management attributed the rebound to the “Back to Starbucks” strategy, renewed customer engagement and early traction in digital ordering and rewards participation.
2. 'Back to Starbucks' Store Refresh and Operational Enhancements
Under CEO Brian Niccol’s turnaround plan, Starbucks has accelerated a targeted store refurbishment program, completing redesigns at approximately 200 locations with plans for more than 1,000 by fall. Upgrades include expanded seating areas with padded stools and leather chairs, additional power outlets, and more prominent product displays. Menu simplification has distilled offerings into a core list of “Coffeehouse Classics,” improving service speed by reducing order complexity. Early tests of AI-powered tools in 5,000 U.S. stores have helped baristas sequence mobile, drive-thru and in-store orders more efficiently, cutting average wait times by 12% in pilot markets.
3. Governance and Security Changes in Executive Travel
In a Monday regulatory filing, Starbucks lifted the previous $250,000 annual cap on CEO Brian Niccol’s personal use of the company’s private aircraft, following an independent security review that identified elevated risks associated with his role. The board has implemented a quarterly review process for flight usage, requiring Niccol to reimburse incremental non-commuting costs if deemed appropriate. The move comes as Niccol, who received $31 million in total compensation last year, spends much of his time visiting global markets to oversee the turnaround. Enhanced protocols for ground transportation in higher-risk destinations have also been adopted to safeguard the executive team.