Starbucks reported a 4% year-over-year increase in U.S. comparable same-store sales in its fiscal first quarter, marking the first U.S. comps gain in eight quarters. Globally, customer traffic rose for the first time in two years, driving quarterly revenue to $9.92 billion, a 5.5% increase over the prior-year period. While earnings per share of $0.56 fell $0.03 short of consensus estimates, management highlighted the sales momentum as validation of its service-led initiatives and menu optimizations.

Terra Alpha Investments LLC increased its Starbucks position by 17.9% during the third quarter, acquiring 6,406 additional shares to bring its total to 42,273 shares, representing 3.6% of the fund’s portfolio and making Starbucks its 12th largest holding. The stake was valued at approximately $3.576 million at quarter end. Other institutional moves include Cooper Haims Advisors raising its stake by 3.0% and Diligent Investors adding 1.9%, reflecting growing confidence among long-term holders as Starbucks executes its turnaround plan.

Director Jørgen Vig Knudstorp purchased 11,700 shares on November 10 at an average cost of $85.00 per share, investing roughly $994,500 and increasing his ownership by 28.3% to 53,096 shares in total. Insider ownership remains minimal at 0.09%, but this significant transaction by a board member suggests management’s conviction in the company’s recovery trajectory and margin improvement efforts.

Under CEO Brian Niccol’s “Back to Starbucks” initiative, the company is prioritizing throughput, customer experience and streamlined operations. Starbucks reinstated full-year guidance of $2.15 to $2.40 in adjusted EPS for fiscal 2026, and set targets of over 5% annual sales growth and operating margins of 13.5% to 15% by fiscal 2028. Analysts project full-year EPS of $2.99, reflecting optimism that ongoing menu innovation, digital engagement and café redesigns will restore profitability and drive sustainable margin expansion.