Starbucks Logs 3% Traffic Growth as Its Comeback Starts to Brew
StarbucksSBUX did something it hasn’t managed since early 2024 — it got more people back through the door. The coffee chain posted its first traffic increase in nearly two years, with transactions up 3% in its fiscal first quarter as customers returned to cafes drawn by holiday favorites and improved service. CEO Brian Niccol’s “Back to Starbucks” turnaround is landing faster than expected, even as earnings miss estimates.
- Global same-store sales (SSS) rose 4%, with US locations matching that performance, marking their strongest showing since late 2023.
- Revenue climbed 6%, though profit plunged 62% as investments in workforce improvements, tariffs, and elevated coffee prices squeezed margins.
Brewing for the future: For fiscal 2026, the Seattle-based chain guided to adjusted EPS of $2.15–$2.40, with at least 3% global SSS growth. Momentum has carried into January, with CFO Cathy Smith saying the top line is tracking as expected in the turnaround. China added another tailwind, posting 7% SSS growth as Starbucks moves toward a joint venture with Boyu Capital to deepen its market presence. The recovery is still underway, but momentum is finally percolating again.