Starbucks earnings: Company posts first quarter of US sales growth in 2 years as turnaround continues

Core Insights - Starbucks reported its first quarter of same-store sales growth in North America and the US in two years, indicating a successful turnaround under CEO Brian Niccol [1][2] - The company achieved a 4% increase in same-store sales in the US and North America, surpassing the expected 2% growth, driven by a 3% rise in foot transactions and a 1% increase in average ticket size [1][4] - Global same-store sales also grew by 4%, exceeding the anticipated 2% increase, marking the second consecutive quarter of growth [4] Financial Performance - Starbucks reported adjusted earnings per share (EPS) of $0.56, which fell short of the forecasted EPS of $0.59 [4] - Revenue for the quarter reached $9.9 billion, surpassing expectations of $9.65 billion [4] - In China, same-store sales increased by 7%, significantly above the expected 2.5% growth, with foot traffic up by 5% and average ticket size up by 2% [3] Strategic Moves - The company sold a majority stake in its China business to Boyu Capital, valuing the business at $4 billion [3] - CEO Brian Niccol emphasized that the results demonstrate the effectiveness of the "Back to Starbucks" strategy, suggesting the company is ahead of schedule in its turnaround efforts [4] - CFO Cathy Smith highlighted a clear path to sustainable earnings growth, positioning the company for long-term profitable growth [5]