Starbucks CEO Brian Niccol touts turnaround progress, stronger U.S. sales and improving customer traffic.
- Starbucks CEO Brian Niccol said its two-year-old turnaround plan is improving customer experiences and sales.
- More than 80% of North American company-operated cafes posted positive comparable sales in Q4.
- Niccol said Starbucks is ahead of schedule on its fiscal 2028 goals.
Starbucks Corp. (SBUX) stock is eyeing its third straight weekly gain as CEO Brian Niccol says the company's turnaround is progressing faster than expected. Strong U.S. sales, improving customer traffic and better store experiences are driving momentum for the coffeehouse giant.
Starbucks stock inched 0.8% lower overnight, ahead of Friday. The stock has gained 4.6% this week. Starbucks is also heading for its best month since April.
Starbucks ’ Turnaround Strategy Gains Traction
During the fourth-quarter earnings call, Starbucks CEO Brian Niccol said the company's Back to Starbucks initiative, launched two years ago, is delivering results by improving the customer experience, strengthening employee support and bringing greater consistency to its coffeehouse operations.
“Our plan is working. More customers are visiting us because the Starbucks experience is better,” said Niccol. He said Starbucks is reaching more markets through its licensing and distribution businesses. The company is also turning more of its sales growth into profit, showing that its recovery goes beyond attracting more customers.
According to Niccol, more than 80% of Starbucks' company-operated locations across North America recorded comparable-sales growth in Q4, compared with fewer than half in the year-ago period.
“Inventory availability is at an all-time high with daily delivery now reaching close to 90% of our North America company-operated coffeehouses.”
“Today, Back to Starbucks is our growth plan. To conclude, fiscal '26 was a tremendous year of progress and results, and it gives us confidence in our trajectory. We're ahead of schedule in relation to our fiscal '28 framework, and we see a clear path to consistent comp growth and stronger earnings in fiscal '27.”
Starbucks Fiscal 2027 Forecast Sends Mixed Signals
For fiscal 2027, Starbucks sees adjusted earnings of $3.15 to $3.25 per share. However, the company expects revenue to contract by about 1%. Starbucks is looking for a 4% increase in North American comparable-store sales.
In Q4, Starbucks generated $9.14 billion in revenue, below the $9.23 billion analysts anticipated, according to Fiscal.ai. North American locations delivered 7.7% comparable-sales growth.
SBUX Stock: Retail View
On Stocktwits, retail sentiment around the stock remained ‘bearish’’.
A user said, “Strong US comp. The renovation of the stores is working.”
SBUX stock has gained 25% year-to-date.
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