Starbucks reported fiscal first quarter revenue of $9.92 billion, beating consensus estimates by $300 million, while adjusted earnings per share of $0.56 narrowly missed the $0.59 forecast. US comparable same-store sales rose 4%—the first growth in eight quarters—driven by a 3% increase in average ticket and a 1% rise in transactions. International comparable sales were up 2%, led by Mainland China, which saw a 5% lift as stores reopened fully and digital engagement increased by 10%.

At its first Investor Day since 2023, CEO Brian Niccol declared that the ‘Back to Starbucks’ turnaround plan is ahead of schedule. Held at The Glasshouse in New York City, the event featured a tour of redesigned café prototypes emphasizing streamlined service lanes and flexible seating, live product demonstrations including Cold Brew flights, and limited-edition merchandise. Niccol highlighted operational improvements—employee training hours up 15% year-over-year—and a 2-point margin lift in pilot markets, underscoring the next phase of menu innovation and digital ordering enhancements.

Starbucks Workers United now represents roughly 600 stores, or about 5% of the 11,000 company-operated locations in North America. CEO Niccol stated he is open to negotiating fair and sustainable agreements, noting that constructive dialogue could improve employee retention—currently at 78% in unionized cafés versus 72% system-wide. Management has accelerated store-level engagement sessions by 20% and increased benefits communications in response to organized labor activities that began in December 2021.

Following Q1 results, management reinstated full-year guidance, forecasting mid-single-digit comparable sales growth and an operating margin recovery toward 13.5%–15% by fiscal 2028. Analysts revised price targets upward, with the consensus moderate-buy rating based on an average target near $105. Institutional holdings saw shifts: Great Lakes Advisors reduced its stake by 16.4% to 61,076 shares valued at $5.17 million, while five smaller funds collectively added approximately 1,200 shares, reflecting divergent views on near-term profitability versus long-term growth prospects.