Here's Why Starbucks Stock Popped Today After Reporting a Significant Drop in Sales

Core Viewpoint - Starbucks shares increased by 7% despite a 6% drop in global transactions in Q1 2025, indicating investor optimism about the company's turnaround plan [1][4]. Group 1: Financial Performance - Global same-store sales fell by 7% year-over-year in Q4 2024, with an 8% decline in transactions, but the 6% drop in Q1 2025 shows improvement [2]. - The operating margin decreased to 11.9% in Q1 2025 from 15.8% in the prior-year period, attributed to higher labor costs and the removal of extra charges for dairy substitutes [3]. - Earnings per share (EPS) are expected to decline further in Q2 2025 due to restructuring charges, but growth is anticipated thereafter on a year-over-year basis [6]. Group 2: Management and Strategy - Starbucks is reportedly on track with its turnaround plan, which was initiated under new CEO Brian Niccol, who was brought in with a significant compensation package [4]. - Despite the decline in profitability, management confirmed that the next dividend payment will be made as scheduled, maintaining consistency with previous payments [5]. - Investors are advised to remain patient as the company works towards achieving both top-line and bottom-line growth, which is not yet realized [7].