Shares of international coffeehouse giant Starbucks (NASDAQ: SBUX) are up 13.7% in 2026 so far, as Wall Street reacted favorably to the company's Q4 2025 earnings report. From growing same-store sales to a 5% bump in global revenue and the opening of 128 net new coffeehouses around the world, it was the most triumphant earnings report since former Chipotle Mexican Grill CEO Brian Niccol took the helm of Starbucks in September 2024. I own shares in Starbucks, but despite the recent positive news, I won't ...

Core Insights - Starbucks is showing signs of a turnaround under CEO Brian Niccol, with positive same-store sales growth in the US and strong growth in China [1][2] Group 1: Turnaround Strategies - The company reported same-store sales growth in the US due to new product offerings like protein coffee, improved food options, and faster service [1] - At the NYC Investor Day, Starbucks announced plans for new drinks, an upgraded rewards program, and remodeled stores to enhance customer experience [2] - Niccol emphasized improved ordering times and better execution by employees as key factors in the turnaround [3] Group 2: Investor Day Highlights - Starbucks committed to adding 25,000 seats to US stores by the end of the fiscal year [5] - The company aims to create a new afternoon business peak supported by new energy drinks and food options [5] - A revised rewards program will launch on March 10, featuring three membership levels: Green, Gold, and Reserve, each with distinct benefits [5] Group 3: Growth and Financial Outlook - Starbucks sees potential to double its international store footprint, primarily through growth in China [6] - The company plans to cut $2 billion in expenses over the next two years [6] - Fiscal year 2028 earnings per share guidance is set at $3.35-$4.00, aligning with analyst estimates [6]

Texas Instruments - Texas Instruments reported an adjusted EPS of $1.27, slightly below expectations, with revenue at $4.42 billion, aligning with estimates. The Q1 revenue guidance is between $4.32 billion to $4.68 billion, which is better than market expectations [2][3] - Data center revenue surged 70% last quarter, indicating strong growth in this segment, which is becoming a new growth engine for the company. Management plans to break out data center revenue separately in future reports [3][4] - The industrial market showed recovery, with growth in the high teens percentage in Q4, driven by factory automation, industrial controls, and embedded systems. However, personal electronics revenue fell in the upper teens percentage [5] Starbucks - Starbucks reported an adjusted EPS of $0.56, which was below expectations, but revenue exceeded estimates at $9.92 billion compared to the expected $9.63 billion. The company is seeing a turnaround with traffic growth for the first time in two years [8][9] - Global same-store sales increased by 4%, and traffic grew by 3%, indicating positive momentum. The holiday season also contributed to strong sales, particularly with viral marketing efforts [10][11] - Despite some margin pressure due to turnaround costs and higher coffee prices, the overall sales and traffic growth are seen as key positive indicators for the company's future [9][10] AT&T - AT&T reported an adjusted EPS of $0.52, beating expectations of $0.46, with revenue at $33.47 billion, surpassing the anticipated $32 billion. The company added 421,000 new post-paid phone customers, in line with estimates [13][14] - The churn rate remained below 1%, indicating customer retention amidst a competitive pricing environment. The company also experienced growth in broadband, adding 283,000 new fiber customers [15][16] - However, the wireline business saw a decline of 7.5%, but overall growth in other segments helped offset this loss [16]

Core Insights - Wall Street is observing early signs of a turnaround for Starbucks, despite a quarterly earnings miss and a sixth consecutive quarter of declining same-store sales [1][2] Financial Performance - Starbucks reported weaker-than-expected earnings for its fiscal third quarter, with same-store sales decreasing for the sixth straight quarter [2] - The company's shares fell more than 1% in morning trading after initially rising 5% in extended trading, with a current market cap of approximately $104 billion [6] Traffic and Customer Engagement - Executives indicated that traffic improved sequentially every month during the quarter, suggesting potential recovery [2] - There was notable traffic growth from non-Starbucks Rewards members, a group that had previously been declining and contributing to sluggish sales [3] Strategic Initiatives - CEO Brian Niccol mentioned that the turnaround is ahead of schedule, supported by the accelerated rollout of the "Green Apron Service" labor program and mobile app enhancements [4] - Starbucks is planning to introduce new menu items in fiscal 2026, including protein cold foam and improved food options, which analysts believe will enhance same-store sales [5] Analyst Perspectives - Analysts are generally optimistic about Starbucks' recovery, with some expressing increased confidence in the company's innovation agenda [5] - However, there are mixed sentiments among investors regarding the effectiveness of Niccol's "Back to Starbucks" strategy, as the recovery is taking longer than expected [5]