Starbucks earnings: Company posts first quarter of US sales growth in 2 years as CEO Niccol says plan is 'working'

Core Insights - Starbucks reported its first quarter of same-store sales growth in North America and the US in two years, with a 4% increase, surpassing the expected 2% rise [1][2] - The company’s CEO, Brian Niccol, highlighted that the turnaround strategy is effective, driven by initiatives like the viral Bearista Cup and healthier food options [2] - Global same-store sales also increased by 4%, exceeding the anticipated 2% growth [4] Financial Performance - For the fiscal first quarter ended December 28, Starbucks reported adjusted earnings per share of $0.56, slightly below the forecast of $0.59, while revenue reached $9.9 billion, exceeding expectations of $9.65 billion [5] - The company anticipates same-store sales growth for the full fiscal year to be 3% or better, with US same-store sales growth also expected to be 3% or better [7] Market Expansion and Strategy - Same-store sales in China rose by 7%, outperforming the expected 2.5% increase, with foot traffic up by 5% and average ticket size up by 2% [3] - Starbucks sold a majority stake in its China business to Boyu Capital for a valuation of $4 billion, which is expected to enhance its market presence [3][4] - The company plans to introduce more health and wellness options and an "afternoon platform" with new product offerings [6] Management Commentary - CFO Cathy Smith emphasized the momentum in business performance and the focus on sustainable, profitable long-term growth [8]