Starbucks Reports First Global Same-Store Sales Growth in Seven Quarters

Starbucks reported its first global same‑store sales gain in seven quarters, with global comps up 1% for the period ended Sept. 28 (North America flat, international +3% with strength in China), a result management attributes to its “Back to Starbucks” turnaround. Revenue rose roughly 5–5.5% to about $9.6 billion, but net income plunged about 85% to ~$133 million and adjusted EPS of $0.52 missed estimates as the company absorbed roughly $1 billion of restructuring costs tied to store closures and workforce reductions. The company closed 627 stores (over 90% in North America), reduced corporate headcount by about 900 (on top of earlier cuts), and saw operating margins compress as it invested in labor and other changes. Starbucks said improvements came from extra staffing, better morning service, new menu items (e.g., protein cold‑foam), revised barista training (L.A.T.T.E.), and store/technology upgrades to speed orders, but warned the turnaround will be a multi‑year effort and deferred fuller guidance until January. Market reaction was mixed — shares initially rose in extended trading after the comp surprise but later fell — and analysts remain cautious amid ongoing restructuring and labor tensions.