Customers go 'Back to Starbucks' as company posts first U.S. growth in 2 years

"Starbucks same store sales were up 4% in the U.S. and 5% globally during the first quarter, thanks largely to a 3% rise in overall transactions. Despite well-documented store closures, the company says it still added 128 net new stores over the last quarter."

""Our Q1 results demonstrate our 'Back to Starbucks' strategy is working and we believe we're ahead of schedule," said Niccol during earnings. "It's great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning." As I reported last year, Niccol's thesis has been that better hospitality will drive more people to return to Starbucks-and that adding seats back to stores post-COVID is a way for the company to stand out."

"Starbucks revenue grew by 6% last quarter overall. However, Niccol is facing tighter margins than he was a year ago. Costs ranging from uplifting Starbucks stores, to increasing staffing and pay (albeit not appeasing unions), to tariffs on ever-more-expensive coffee beans have decreased margins from 16.7% to 11.9%."

Brian Niccol refocused Starbucks on customer-centric, hospitality-driven stores to spark a turnaround. After prior global sales declines, Q1 2026 earnings beat estimates and delivered the first U.S. same-store sales increase in eight quarters. Same-store sales rose 4% in the U.S. and 5% globally, supported by a 3% rise in transactions and 128 net new stores. Overall revenue grew 6%, while margins fell from 16.7% to 11.9% due to store investments, higher staffing and pay, and tariffs on coffee. Strategy elements include improved in-store experience, added seating, a simplified menu, ad campaigns, merch drops, and celebrity collaborations.

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