People walk onto an escalator under a Starbucks coffee sign in Manhattan on Dec. 2, 2025 in New York City.
Spencer Platt | Getty Images
Starbucks on Wednesday reported mixed quarterly results as the company’s turnaround propels traffic growth for the first time in two years but weighs on its bottom line.
“Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule,” CEO Brian Niccol said in a statement. “It’s great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”
Here’s what the company reported for the quarter ended Dec. 28 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 56 cents adjusted vs. 59 cents expected
- Revenue: $9.92 billion vs. $9.67 billion expected
Excluding items, Starbucks earned 56 cents per share.
Net sales rose 6% to $9.92 billion, driven by the company’s second straight quarter of same-store sales growth.
Global same-store sales increased 4%, topping StreetAccount estimates of 2.3%. Traffic grew 3%, marking the first time that the company’s transactions have grown in two years.
U.S. same-store sales also rose 4%, fueled by demand for its holiday offerings, like its viral “Bearista” cup and classics menu items like the peppermint mocha. In November, Niccol said the holiday menu launch was the best-ever day for the company’s North American business.
Outside the U.S., Starbucks’ international same-store sales increased 5%.
China, the company’s second-largest market, saw same-store sales grow 7%. During the quarter, the company announced its plans to form a joint venture with Boyu Capital to run its business in China. The deal is expected to close in the second quarter of fiscal 2026, pending regulatory approval.
The company also opened 128 net new locations during the quarter.
Investors are expecting to hear more details about Niccol’s strategy on Thursday at an investor day held in New York City. Executives will also share the company’s new long-term financial targets.