Starbucks’ Turnaround Is ‘Ahead of Schedule’ as Sales Beat Expectations
The coffee chain got a sales boost thanks to faster service times and a $30 bear cup.
Starbucks is getting the caffeine boost it badly needed. The coffee giant reported same-store sales up 4% last quarter, surpassing analyst forecasts and marking its best U.S. performance in two years.
Since taking over in late 2024, CEO Brian Niccol has transformed operations — cutting the menu by 30%, adding staff to meet a four-minute service goal, and closing 600 stores. But one unexpected hit was a $30 bear-shaped holiday cup that became so viral it sold out almost instantly, with resellers charging over $100 on eBay.
Global same-store sales rose 4% from a year ago, with China climbing nearly 7%. Revenue increased 5% to $9.9 billion, though profit fell more than 60% to $293 million as the company invested heavily in hiring more store workers. Starbucks shares jumped about 5% Wednesday.
Starbucks is getting the caffeine boost it badly needed. The coffee giant reported same-store sales up 4% last quarter, surpassing analyst forecasts and marking its best U.S. performance in two years.
Since taking over in late 2024, CEO Brian Niccol has transformed operations — cutting the menu by 30%, adding staff to meet a four-minute service goal, and closing 600 stores. But one unexpected hit was a $30 bear-shaped holiday cup that became so viral it sold out almost instantly, with resellers charging over $100 on eBay.
Global same-store sales rose 4% from a year ago, with China climbing nearly 7%. Revenue increased 5% to $9.9 billion, though profit fell more than 60% to $293 million as the company invested heavily in hiring more store workers. Starbucks shares jumped about 5% Wednesday.
