Core Viewpoint - Concerns about an AI stock bubble are prevalent, prompting a look at Starbucks as a potential investment opportunity due to its recent recovery signs after two years of struggles [1][2]. Company Overview - Starbucks operates a chain of café restaurants and has undergone significant changes under new CEO Brian Niccol, shifting back to being a "third place" for customers rather than just a grab-and-go coffee shop [7]. Recent Performance - Starbucks has experienced stagnant and declining sales over the past two years, with only a 2% increase since 2021, while the S&P 500 rose over 75% in the same period [5]. - The company reported a 3% increase in comparable transactions per store and a 4% global sales growth in Q1 of fiscal 2026, marking the first sales growth in eight quarters [9]. - Consolidated net revenue grew 6% to $9.9 billion in the latest quarter, although operating margin fell by 640 basis points to 41.3% and earnings per share (EPS) decreased by 62% [10]. Strategic Initiatives - Starbucks plans to renovate 10% of its U.S. stores to enhance customer comfort, which includes adding comfier chairs and more power outlets to encourage longer stays [8]. - The company opened 128 new stores in the last quarter, bringing the total to 41,118 worldwide, with 52% being company-operated and 48% franchised [9]. Market Position - The stock has recovered by almost 11% over the past month, indicating positive momentum for the company following its latest earnings release [6]. - The international operations of Starbucks showed strong performance, with net revenue from these locations surging by 10.3% and operating income growing by 19.2% [10].