Core Insights - Starbucks stock increased by over 6% following the release of quarterly results indicating a return to sales growth [1] Financial Performance - Revenue rose by 6%, while overall earnings declined; global same-store sales increased by 4% with higher ticket sizes in North America and internationally [2] - China sales showed strong performance with a 7% growth, driven by increased order sizes and same-store sales [2] - Year-over-year figures indicate a return to growth, with an increase of approximately 700 stores, bringing the total to over 41,000 worldwide, with 48% licensed and 52% company-operated [3] Strategic Initiatives - Earnings contraction was attributed to labor investments for the "Back to Starbucks" initiative and inflationary pressures, particularly from elevated coffee prices and tariffs [4] - The "Back to Starbucks" strategy aims to revitalize the brand by focusing on creating a welcoming coffeehouse environment and serving high-quality coffee, with the CEO stating that the strategy is ahead of schedule [4] Labor Relations - The ongoing Starbucks Workers United strike, which began in November 2025, seeks to address staffing levels, pay increases, and labor-law violations, representing around 11,000 workers across 550 stores [5] - The earnings release did not address the strike directly, only mentioning inherent risks associated with operating a global business, including labor strikes [6]

Financial Data and Key Metrics Changes - In Q1 fiscal 2026, global revenue increased by 5% to $9.9 billion, with operating margins at 10.1% and EPS at $0.56, down 19% year-over-year [7][21][26] - North America revenue grew by 3% to $7.3 billion, with comparable store sales also increasing by 4% [7][22] - International revenue rose by 10% to $2.1 billion, with comparable store sales growth of 5% [16][24] Business Line Data and Key Metrics Changes - North America saw a 4% increase in comparable store sales, driven by a 3% growth in transactions [22] - The U.S. company-operated sales comps were up 4%, marking the first transaction growth in eight quarters [8][22] - The international segment's comparable sales growth was led by strong performance in China, Japan, and the U.K. [16][24] Market Data and Key Metrics Changes - Starbucks Rewards' 90-day active members reached a record 35.5 million, with both rewards and non-rewards transactions growing year-over-year for the first time in eight quarters [8][22] - In China, comparable store sales grew by 7%, reflecting strong momentum and effective marketing [16][24] Company Strategy and Development Direction - The company is focused on its "Back to Starbucks" plan, aiming for sustained growth and profitability through improved customer service and operational efficiency [6][20] - Strategic investments are being made to enhance technology and streamline operations, with a new Chief Technology Officer appointed to drive improvements [10][20] - The company plans to open approximately 600-650 net new coffeehouses in fiscal 2026, with a focus on international expansion, particularly in China [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting that top-line growth is expected to lead to improved margins and earnings [19][34] - The company anticipates that pressures from product and distribution costs will begin to ease in the latter half of the fiscal year [25][32] - Management highlighted the importance of maintaining customer engagement and brand relevance through innovative marketing and menu offerings [15][19] Other Important Information - A joint venture with Boyu Capital in China is expected to enhance Starbucks' growth potential in the region, with a 60% interest being sold to Boyu [27][28] - The company is implementing a new labor model and refining its supply chain to improve efficiency and reduce costs [9][44] Q&A Session Summary Question: North America traffic performance and Green Apron service model - Management noted that North America comp results were driven by transactions, with about 0.5 points attributed to sales transfer from closed stores [36][37] Question: Additional cost opportunities - The company has identified a plan to track down $2 billion in costs over the next two years, focusing on efficiency across the P&L [43][44] Question: Earnings guidance for fiscal 2026 - The higher end of earnings guidance is contingent on maintaining strong comp performance and effective execution of the Green Apron service model [46][47] Question: Same-store sales momentum and service versus innovation - Management emphasized that a strong operating foundation enhances the effectiveness of marketing and innovation efforts [66][69] Question: Afternoon execution and competition - The company sees significant opportunities in the afternoon daypart and plans to enhance its offerings to compete effectively [55][60]

Core Viewpoint - El Pollo Loco has appointed Frank Garrido as an independent member of its Board of Directors, effective March 1, 2026, to enhance its growth strategy and operational expertise [1][2][3]. Group 1: Appointment Details - Frank Garrido, currently the Executive Vice President – Chief Restaurant Officer at Domino's Pizza, will join El Pollo Loco's Board following the retirement of Mark Buller, who served for 10 years [1][3]. - Garrido's extensive experience in restaurant operations and leadership is expected to add significant value as El Pollo Loco expands its presence in existing and new markets [2][3]. Group 2: Company Background - El Pollo Loco is recognized as the leading fire-grilled chicken restaurant in the U.S., with over 500 company-owned and franchised locations across several states, including Arizona, California, and Texas [4]. - The company has been acknowledged by USA Today as a "Best Restaurant for Quick, Healthy Food" for two consecutive years, highlighting its commitment to quality and innovative menu offerings [4].

Financial Data and Key Metrics Changes - In Q1 fiscal year 2026, global revenue increased by 5% to $9.9 billion, with operating margins at 10.1% and EPS at $0.56, down 19% from the prior year [5][18][24] - North America revenue grew 3% to $7.3 billion, with comparable store sales also increasing by 4% [5][19] - International segment revenue rose by 10% to $2.1 billion, with comparable sales growth of 5% [13][21] Business Line Data and Key Metrics Changes - North America saw a 4% increase in comparable store sales, driven by a 3% growth in transactions [5][19] - The U.S. company-operated transaction comps grew year over year for the first time in eight quarters, with Starbucks Rewards' active members reaching 35.5 million [6][20] - The international segment's comparable store sales in China grew by 7%, marking the third consecutive quarter of growth [13][22] Market Data and Key Metrics Changes - The U.S. licensed store portfolio revenue declined due to ongoing trends in grocery and retail channels, but growth was noted in business, college, and healthcare segments [21] - The international segment's growth was supported by strong performance in major markets like China, Japan, and the U.K. [21][22] Company Strategy and Development Direction - The company is focused on its "Back to Starbucks" plan, aiming for sustained growth and profitability through disciplined execution [4][5] - Strategic investments are being made to enhance operational foundations, with a focus on technology and supply chain improvements [8][19] - The company plans to open approximately 600-650 net new coffeehouses in fiscal 2026, with a significant portion in China [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, noting that top-line growth is expected to lead to improved margins and earnings [4][16] - The company anticipates that pressures from product and distribution cost inflation will begin to ease as the fiscal year progresses [23][29] - The outlook for fiscal 2026 includes expectations for 3% or better global comparable sales growth [27][30] Other Important Information - A joint venture with Boyu Capital was announced to enhance Starbucks' potential in China, with expectations to close the deal in spring 2026 [24][25] - The company has reduced its menu by approximately 25-30% to streamline offerings and focus on health and wellness platforms [78] Q&A Session Summary Question: North America traffic performance and Green Apron service model - Management noted that North America comp results were driven by transactions, with about 0.5 points attributed to sales transfer from closed stores [36] Question: Additional cost opportunities - The company is tracking down about $2 billion in costs over the next two years, focusing on efficiency across the P&L [41] Question: Earnings guidance for fiscal 2026 - Higher-end guidance is contingent on maintaining strong comp performance, supported by effective execution of the Green Apron service model [44][46] Question: Same-store sales momentum and non-rewards member growth - Management emphasized the importance of engaging both rewards and non-rewards customers, with a focus on broad marketing and menu innovation [48][50] Question: Afternoon execution opportunities - The company plans to enhance afternoon offerings with more relevant beverages and food, leveraging digital menu boards for better customer engagement [54][55]

Core Insights - FAT Brands has filed for Chapter 11 bankruptcy protection, aiming to reject leases for several closed company-owned restaurants, including locations for Johnny Rockets, Smokey Bones, and Yalla Mediterranean [1][4] - The company operates 18 restaurant chains with over 2,200 locations globally, primarily franchised, and directly owns approximately 150 locations [2] - CEO Andy Wiederhorn expressed confidence in the company's resilience and long-term growth potential, stating that the bankruptcy process will help strengthen its capital structure [3] Company Operations - FAT Brands has announced the closure of 14 Smokey Bones locations, 2 Johnny Rockets, and 5 Yalla Mediterranean locations, with the latter two only in California [4] - The company expects its restaurants to continue operating normally during the bankruptcy process [4] Location Details - Specific closures include locations in California, Florida, Georgia, Illinois, Massachusetts, Michigan, Ohio, Pennsylvania, and Virginia [6][9][12]

Starbucks returned to customer traffic growth for the first time in two years, signalling early progress in its turnaround while underscoring the cost pressures reshaping its earnings profile. The cof... ...

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Core Insights - Starbucks reported a Q1 earnings win, with a 4% global same-store sales growth, attributed to higher ticket sizes and transactions, marking the first comparable transaction growth in the US in eight quarters [1][2] Group 1: Sales Performance - North America and US comparable store sales increased by 4%, while international comparable store sales rose by 5%, with Chinese sales up by 7% following the announcement of a 60% stake sale in its China business to Boyu Capital [2] - The stock of Starbucks rose more than 7% in premarket trading following the earnings report [2] Group 2: Management Commentary - CEO Brian Niccol indicated that the Q1 report reflects growing momentum in the "Back to Starbucks" revitalization effort [3] - Niccol expressed excitement about the turnaround plan, emphasizing that top-line growth is being achieved through increased transactions, with clear plans to convert this growth into margin and earnings growth [4]

Core Insights - Starbucks shares reached levels not seen in nearly a year following the announcement of quarterly growth in a key sales metric at the fastest rate in two years [1] Company Performance - The coffee chain reported significant growth in a key sales metric, indicating strong performance and consumer demand [1]

"BACK TO STARBUCKS" PRIORITIES STARBUCKS Q1 FY26 - EARNINGS AT A GLANCE "Our Q1 results demonstrate our 'Back to Starbucks' strategy is working and we believe we're ahead of schedule. It's great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning." - Brian Niccol, chairman and ceo GLOBAL NET REVENUE 1,3 74% 21% 5% NORTH AMERICA INTERNATIONAL CHANNEL DEVELOPMENT $9.9B 5% YoY 2 COMP +4% +4% +4% U.S. +5% +7% China GLOBAL OPERATING MARGIN 1 10.1% - 18 ...