Starbucks' earnings report on Wednesday showed a first-quarter win, and its stock rose in response.
The coffee giant reported 4% same-store sales growth globally, driven by higher ticket sizes and transactions, and posted its first comparable transaction growth in the US in eight quarters.
North America and US comparable store sales increased 4%, while international comparable store sales increased 5%, and Chinese sales increased 7% after Starbucks announced in November that it was selling a 60% controlling stake in its China business to Boyu Capital.
Starbucks' stock opened about 9% on Wednesday morning.
CEO Brian Niccol said during a call with investors on Wednesday that the Q1 report reflects growing momentum in his "Back to Starbucks" revitalization effort.
"I'm most excited that our turnaround plan is coming to life in the way we envision, first turn around the top line, and then earnings growth will follow," Niccol said. "And I'm delighted to say we are now achieving top-line growth driven by transactions, and we have clear plans on how we expect to turn top-line growth into margin and earnings growth."
Starbucks still has work to do, though, Niccol said. While the chain is making good on its promise to get customers their orders within four minutes during its busiest times, he said, its stores don't consistently meet that goal during slower times of the day.
The four-minute goal was one of the early changes Niccol outlined after becoming Starbucks' CEO in 2024.
"There still is opportunity, frankly, to get the entire business — every transaction — to be under four minutes," Niccol said.
