A Starbucks coffee shop in Bosto, Mass. The chain has trimmed its offerings in U.S. stores in an effort to simplify its menu.Charles Krupa/The Associated Press
Starbucks SBUX-Q reported a bigger-than-expected rise in first-quarter comparable sales on Wednesday, as demand rebounded in the U.S. after nearly two years in early signs of success of CEO Brian Niccol’s turnaround efforts.
The company’s shares rose 5 per cent in premarket trading after it also reinstated its full-year targets ahead of its first investor day under Niccol on Thursday in New York.
Niccol has focused on reviving the company’s coffeehouse culture in the U.S. to bring back consumers and fend off newer rivals.
Starbucks has trimmed nearly 30 per cent of its offerings in U.S. stores at the end of 2025 as part of simplifying its menu. Over the last year, the company has shed items such as olive-oil infused beverage line Oleato, and several “frappuccino” beverages to focus on its key lattes.
Comparable sales rose 4 per cent in North America, marking their first gains in nearly two years. The company has shed hundreds of underperforming stores, including its flagship Seattle roastery, and has also tried to lower back-end operational costs.
In the reported quarter, customer traffic was also up on key promotional days such as the annual Red Cup day in December, as well as its holiday merchandise collection item, the Bearista Cold Cup in November, according to data from Placer.ai.
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The company reported a 4-per-cent rise in quarterly global comparable sales, compared with estimates of 2.25 per cent, according to data compiled by LSEG.
Starbucks expects fiscal 2026 global same-store sales to grow 3 per cent or higher, compared with estimates of a 2.94-per-cent rise.
The company expects fiscal 2026 adjusted profit to be US$2.15 to US$2.40 per share, the mid-point of which is below estimates of US$2.35.