Starbucks Investor Day Shows Turnaround Momentum

At Starbucks Investor Day on Jan. 29, 2026, Starbucks Corp. (SBUX) reported progress in its "Back to Starbucks" turnaround plan, highlighting stronger sales and the first U.S. transaction growth in eight quarters. The company also unveiled remodel, artificial intelligence (AI), and loyalty initiatives aimed at restoring growth.

Q1 Results and FY26 Guidance

On Jan. 28, Starbucks reported Q1 fiscal 2026 results for the quarter ended Dec. 28, 2025, with consolidated net revenues of $9.9 billion, up 5.0% year-over-year. Global comparable-store sales rose 4.0%, driven by a 3.0% increase in transactions and a 1.0% rise in average ticket size. North America comparable-store sales increased 4.0%, with U.S. transactions up 3.0%, marking the first positive U.S. transaction growth in eight quarters. International comparable sales grew 5.0%, led by China’s 7.0% increase and a 5.0% rise in transactions.

Diluted earnings per share fell 19% year-over-year to $0.56, while operating margin ranged from 10.1% to 11.9%, down roughly 180 basis points. The global store count reached 41,118, up 1.0% with a net addition of 128 stores. The company reported 35.5 million active Rewards members over the prior 90 days.

For fiscal 2026, Starbucks guided to comparable sales growth of at least 3.0%, 600 to 650 net new stores globally, and earnings per share between $2.15 and $2.40. Management said coffee- and tariff-related cost pressures should peak in the second quarter, easing in the second half. A new operating structure is expected to add roughly 40 basis points annually to margins.

Progress on the Back to Starbucks Plan

Starbucks has completed about 200 coffeehouse remodels so far, mostly overnight, at an average cost of $150,000 each, and aims to exceed 1,000 remodels by the end of fiscal 2026 (September 2026). The company is expanding in-store service features, including a refreshed spring menu with new espresso, matcha, and chai beverages, along with expanded bakery and wellness options such as protein drinks and snacks.

Service enhancements include an expanded Green Apron Service model, additional condiment bars, and more visible barista engagement. The company introduced a coffeehouse coach role that broadens the assistant manager function, expecting about three years of store tenure. About 90% of retail leader hires have come from within, and more than 7,000 partners were promoted to management last quarter. Starbucks also reduced roughly 40 operational metrics to focus on customer experience, peak-period staffing, scheduling, and inventory.

Investor Day materials highlighted technology upgrades, including broader deployment of Green Dot Assist, an AI tool delivering recipes to barista tablets, plans for AI-driven scheduling based on demand and weather, and a new point-of-sale system. These changes support a goal to serve more than 1 billion espresso shots annually in four minutes or less. The company plans to deploy the Mastrena Presta espresso shot puller in 2026 and introduce the Mastrena 3 in 2027, which will halve quad-shot pull time.

The loyalty program returned to a three-tier structure, adding a longer birthday treat window and a new 60-star tier offering $2 off any purchase.

Outlook and Longer-Term Plans

Starbucks plans to continue its remodel and equipment upgrades through fiscal 2026 and beyond. The company flagged multi-year objectives through fiscal 2028 focused on revenue growth, additional store expansion, AI-powered customization, and margin improvement.