Starbucks Is Carrying Out a Major Revamp. There Are Signs It's Working.

Core Insights - Starbucks is experiencing a resurgence in business, particularly among loyal customers and new visitors, indicating a successful turnaround strategy [1][2][8] Financial Performance - The company reported a 5% year-over-year increase in revenue for the fiscal fourth quarter, reaching $9.6 billion, surpassing analyst expectations of $9.1 billion [9] - Adjusted earnings per share were 52 cents, which fell short of the anticipated 55 cents [9] - Same-store sales in the U.S. turned positive in September after six consecutive quarters of decline, with a global growth of 1% year-over-year [3][8] Strategic Initiatives - The "Back to Starbucks" campaign, initiated by CEO Brian Niccol, focuses on improving order management and creating a more inviting café environment [5][8] - The company is investing in staffing, technology, and café renovations while also closing some locations and laying off white-collar workers [5][4] Market Reaction - Starbucks shares have seen a decline of about 25% since reaching their peak in March, reflecting market volatility despite recent improvements in business performance [6]