Starbucks Reports First U.S. Sales Growth in Two Years
Starbucks CEO Brian Niccol speaks with FOX Business’ Liz Claman from the company’s leadership conference, where he weighs in on top priorities and growth strategies, as well as adding protein cold foam to drinks in menu innovation.
Demand is rebounding at Starbucks, signaling that CEO Brian Niccol’s turnaround efforts are working.
The company reported on Wednesday that sales at North American stores open for at least a year rose by 4%. This growth was primarily driven by a 3% increase in purchases from existing customers and a 1% rise in the average amount spent per transaction. Notably, this marks the first uptick in store sales in eight quarters.
Globally, sales at stores also increased by 4%, as existing customers bought more and spent slightly more per purchase.
STARBUCKS ROLLS OUT CHANGES, INCLUDING FREE REFILLS; BRINGS BACK CONDIMENT BARS
The global coffee chain, which revamped its strategy and launched a turnaround plan under Niccol in September 2024, exceeded Wall Street expectations on sales and revenue, although it fell short on profit, known as earnings per share estimates.
Starbucks reported revenue of $9.9 billion and reinstated its full-year targets on Wednesday. The company’s stock has risen by $16.24 this year, reflecting a 19.34% increase.
People pass by a Starbucks coffee shop in Manhattan, New York, United States on Jan. 15, 2025. (Mostafa Bassim/Anadolu via Getty Images / Getty Images)
The company will host its first investor day under Niccol on Thursday in New York, as he aims to steer the chain back to its coffeehouse roots and encourage customers to linger rather than rush through.
STARBUCKS REVERSES OPEN BATHROOM POLICY
“Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working, and we believe we’re ahead of schedule,” Niccol stated. “It’s great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”
Niccol has consistently asserted that the company is progressing well in its turnaround plan, even before the latest earnings report.
Starbucks CEO Brian Niccol looks on during the Golden Bear Pro-Am prior to the Memorial Tournament presented by Workday 2025 at Muirfield Village Golf Club on May 28, 2025 in Dublin, Ohio. (Michael Reaves/Getty Images / Getty Images)
In September, Niccol informed FOX Business that the coffee chain was “ahead of schedule” in its turnaround, although he acknowledged that the journey was far from complete.
THE NEW STARBUCKS STRATEGY: WILL CEO BRIAN NICCOL’S PLAN WORK?
Niccol is banking on an “aggressive” redesign, an enhanced rewards program, and a variety of new food and beverage items to drive momentum and reverse the decline in traffic.
This isn’t Niccol’s first turnaround; he previously helped Taco Bell and Chipotle navigate their challenges. He became Starbucks’ third CEO in two years, taking the helm of a company facing pressure from unionization campaigns nationwide and back-to-back disappointing fiscal quarters as traffic declined a year ago.
A worker at a Starbucks coffee shop makes a drink at the Detroit Metro Airport in Michigan. (Jim West/UCG/Universal Images Group via Getty Images / Getty Images)
Starbucks stores in the U.S. have continued to experience a decline in store visits during a time when broader environmental factors have made consumers more mindful of their spending habits.
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However, Niccol remains confident in the company’s trajectory, noting that several initiatives have been implemented faster than he initially anticipated. This includes a new protein menu set to launch at the end of September and the Green Apron Service model. This service model utilizes tools like its Smart Queue to streamline orders across mobile pickup, drive-thru, and café, reducing wait times for customers.
Starbucks CEO Brian Niccol speaks with FOX Business’ Liz Claman from the company’s leadership conference, where he weighs in on top priorities and growth strategies, as well as adding protein cold foam to drinks in menu innovation.
Demand is rebounding at Starbucks, signaling that CEO Brian Niccol’s turnaround efforts are working.
The company reported on Wednesday that sales at North American stores open for at least a year rose by 4%. This growth was primarily driven by a 3% increase in purchases from existing customers and a 1% rise in the average amount spent per transaction. Notably, this marks the first uptick in store sales in eight quarters.
Globally, sales at stores also increased by 4%, as existing customers bought more and spent slightly more per purchase.
STARBUCKS ROLLS OUT CHANGES, INCLUDING FREE REFILLS; BRINGS BACK CONDIMENT BARS
The global coffee chain, which revamped its strategy and launched a turnaround plan under Niccol in September 2024, exceeded Wall Street expectations on sales and revenue, although it fell short on profit, known as earnings per share estimates.
Starbucks reported revenue of $9.9 billion and reinstated its full-year targets on Wednesday. The company’s stock has risen by $16.24 this year, reflecting a 19.34% increase.
People pass by a Starbucks coffee shop in Manhattan, New York, United States on Jan. 15, 2025. (Mostafa Bassim/Anadolu via Getty Images / Getty Images)
The company will host its first investor day under Niccol on Thursday in New York, as he aims to steer the chain back to its coffeehouse roots and encourage customers to linger rather than rush through.
STARBUCKS REVERSES OPEN BATHROOM POLICY
“Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working, and we believe we’re ahead of schedule,” Niccol stated. “It’s great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”
Niccol has consistently asserted that the company is progressing well in its turnaround plan, even before the latest earnings report.
Starbucks CEO Brian Niccol looks on during the Golden Bear Pro-Am prior to the Memorial Tournament presented by Workday 2025 at Muirfield Village Golf Club on May 28, 2025 in Dublin, Ohio. (Michael Reaves/Getty Images / Getty Images)
In September, Niccol informed FOX Business that the coffee chain was “ahead of schedule” in its turnaround, although he acknowledged that the journey was far from complete.
THE NEW STARBUCKS STRATEGY: WILL CEO BRIAN NICCOL’S PLAN WORK?
Niccol is banking on an “aggressive” redesign, an enhanced rewards program, and a variety of new food and beverage items to drive momentum and reverse the decline in traffic.
This isn’t Niccol’s first turnaround; he previously helped Taco Bell and Chipotle navigate their challenges. He became Starbucks’ third CEO in two years, taking the helm of a company facing pressure from unionization campaigns nationwide and back-to-back disappointing fiscal quarters as traffic declined a year ago.
A worker at a Starbucks coffee shop makes a drink at the Detroit Metro Airport in Michigan. (Jim West/UCG/Universal Images Group via Getty Images / Getty Images)
Starbucks stores in the U.S. have continued to experience a decline in store visits during a time when broader environmental factors have made consumers more mindful of their spending habits.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
However, Niccol remains confident in the company’s trajectory, noting that several initiatives have been implemented faster than he initially anticipated. This includes a new protein menu set to launch at the end of September and the Green Apron Service model. This service model utilizes tools like its Smart Queue to streamline orders across mobile pickup, drive-thru, and café, reducing wait times for customers.
