Starbucks Sees Robust Same-Store Sales. Can the Stock's Momentum Continue?

Core Insights - Starbucks is showing signs of a turnaround with global same-store sales growth accelerating in its fiscal first quarter [1] - The company has implemented strategies under CEO Brian Niccol to boost sales, including adding baristas, menu innovation, and brand marketing [2] Sales Performance - Global same-store sales rose 4%, with traffic climbing 3% and average ticket increasing 1%, marking the first increase in traffic in two years [3] - In North America, comparable-store sales also climbed 4%, with traffic up 3%, compared to flat same-store sales in the prior quarter [5] - International same-store sales jumped 5%, with traffic rising 3% and average ticket up 2% [5] - China's same-store sales increased by 7%, with a 2% rise in average ticket and traffic [6] Financial Results - Overall sales increased by 6% to $9.92 billion, surpassing analysts' estimates of $9.67 billion, while adjusted earnings per share (EPS) fell 19% to $0.56, missing the consensus of $0.59 [7] - The company expects global same-store sales growth of 3% or better for fiscal 2026 and plans to open 600 to 650 new shops [8] Future Outlook - Starbucks anticipates slight operating margin improvement for the year, with more significant progress expected in the second half [8] - The company is regaining sales momentum, although this has resulted in lower operating margins and profits [9] - The stock has not moved much in the past five years but may be poised for a breakout if momentum continues [10]