Starbucks Reports First Global Sales Gain in Seven Quarters Amid Profit Miss

Starbucks reported its first positive same-store sales growth in nearly two years, driven by a 3% rise in international sales and operational improvements under CEO Brian Niccol, despite adjusted profits missing Wall Street expectations. The company’s fiscal fourth-quarter revenue rose 5% to $9.6 billion, beating estimates, while adjusted EPS dropped to $0.52 from $0.80 a year earlier, missing analyst targets. International markets, particularly China with over 8,000 stores and record revenues, contributed significantly to growth, whereas U.S. sales showed mixed results with ongoing challenges in traffic and margin compression due to higher coffee bean prices. New initiatives like the Green Apron Service and menu innovations aimed at improving customer experience and service efficiency have shown early traction. Investor sentiment shifted to bullish amid signs of a turnaround, although concerns about profit declines, labor tensions, and store rationalization persist. Starbucks also declared a $0.62 quarterly dividend, signaling confidence in its long-term strategy and shareholder returns.