"Starbucks Corp. Chief Executive Officer Brian Niccol delivered the best evidence yet that his turnaround plan is taking hold, with the coffee chain posting unexpectedly strong growth and a solid outlook for the rest of the year. Global sales at established locations rose 4% in the most recent quarter, the company said in a statement. That topped even the most optimistic analyst expectations and built on positive results from the previous period after a lengthy slump."
"Starbucks on Wednesday also issued its first full-year outlook under Niccol. Sales from established locations are seen growing at least 3% in fiscal 2026, above the average of analyst estimates. The shares rose as much as 9.5%, the biggest intraday gain since April. Before the results, Starbucks stock had risen 5% since Niccol took over in 2024, versus a 29% gain for the S&P 500 Index over that time."
"Niccol's strategy has focused on improving service and speed while reducing menu complexity. It's a massive undertaking; Starbucks operates tens of thousands of locations across 80 countries. The company is also working to make its stores more inviting so customers linger and order more. Starbucks said in a call with analysts that it has so far renovated about 200 of its coffee shops, with plans to refresh more than 1,000 by the end of the fiscal year."
Starbucks reported 4% global comparable sales growth at established locations for the most recent quarter, exceeding optimistic analyst expectations. The company issued its first full-year outlook under Brian Niccol, projecting at least 3% comparable-store sales growth in fiscal 2026. Shares jumped as much as 9.5%, the largest intraday gain since April. Niccol's turnaround emphasizes improving service and speed, reducing menu complexity, and making stores more inviting. About 200 stores have been renovated so far, with plans to refresh over 1,000 by fiscal year-end. U.S. sales rose 4%, driven by higher transactions and spend per checkout. Prior to Niccol, Starbucks emphasized technology and mobile ordering to speed throughput.
Read at Los Angeles Times
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