Starbucks opened the year with a 15% gain in its share performance during the first three weeks of 2026, marking its best January in five years. This rally reflects growing investor confidence in the company’s ability to execute on its turnaround agenda, even after a year in which the stock underperformed the broader market. The Seattle-based chain also reported same-store sales growth of 6% in its largest U.S. markets for the first half of fiscal Q2, driven by higher ticket averages and increased frequency among Rewards members.

Since Brian Niccol took the helm 15 months ago, Starbucks has simplified its core menu by removing more than 20 low-volume beverages and discontinued underperforming U.S. stores—approximately 4% of its domestic footprint. Investments in store redesigns and barista training have coincided with a 12% rise in average transaction size and a 9% increase in order accuracy scores based on company data. Enhancements to the loyalty program this quarter, including accelerated point accrual on cold beverages, have driven a 10% uptick in active Rewards members year-over-year.

To standardize customer experience across its nearly 17,000 U.S. locations, Starbucks is rolling out a new “coffeehouse coach” role, with 500 positions expected by mid-year. These coaches will oversee training, operational consistency and customer engagement metrics at high-volume stores. Concurrently, the company plans to pilot back-of-house robotic systems for box unloading and mug washing in select test markets, targeting a 20% reduction in barista non-customer–facing tasks and allowing more focus on service and hospitality.

Starbucks is set to release Q1 earnings before the market opens on Wednesday, January 28, with analysts forecasting a modest year-over-year decline in EPS due to elevated labor and commodity costs. UBS has maintained a Neutral stance on the stock, citing a need for clear evidence that cost pressures are stabilizing. At the upcoming Investor Day, management is expected to outline long-term margin targets, detail capital allocation plans through 2028 and provide updates on physical AI deployments and sustainability investments that could shape the next phase of growth.