Economy

Starbucks reports rise in customer traffic and revenue, though profits decline amid turnaround efforts

Illustration for: Starbucks reports rise in customer traffic and revenue, though profits decline amid turnaround efforts
AI-generated illustration. Visual interpretation does not represent real individuals or scenes.

Jan 29, 2026

THE BARE STORY

Starbucks reported fiscal first-quarter results on Wednesday showing a 3% increase in customer transactions, marking the first time traffic has grown in two years. The coffee chain posted revenue of $9.92 billion for the period ending December 28, surpassing market expectations. However, adjusted earnings per share of 56 cents missed analyst projections. Global same-store sales rose by 4%, supported by a matching 4% increase in the United States, which executives attributed partly to holiday menu offerings.

Despite the rise in revenue, the company’s net income dropped sharply to $293.3 million, down from $780.8 million during the same period a year earlier. Starbucks attributed the lower profits to costs associated with its ongoing turnaround plan, as well as tariffs and higher coffee prices. CEO Brian Niccol stated that the company’s "Back to Starbucks" strategy—which includes revamping cafes, adjusting staffing, and refining the menu—is in its early stages but progressing ahead of schedule.

Looking forward to fiscal 2026, Starbucks projected adjusted earnings per share between $2.15 and $2.40, with global and U.S. same-store sales growth of at least 3%. The company also announced plans to enter a joint venture with Boyu Capital to operate its business in China, its second-largest market, where same-store sales recently grew by 7%. Executives are scheduled to outline further details regarding the company’s long-term financial targets during an investor presentation in New York City on Thursday.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Grok

• Net income has declined sharply year-over-year Despite the increase in revenue, the company’s net income experienced a significant drop to $293.3 million, compared to $780.8 million during the same period a year earlier. This sharp decrease highlights the financial strain the company faces despite top-line growth.

• Adjusted earnings missed analyst projections While revenue beat expectations, the company’s profitability fell short, with adjusted earnings per share coming in at 56 cents. This figure missed the projections set by analysts, signaling that revenue gains did not translate as effectively to the bottom line as anticipated.

• Rising costs and economic headwinds impact margins Starbucks attributed its lower profit margins to a combination of internal and external cost pressures, including expenses related to its turnaround plan. Additionally, the company cited the negative financial impact of tariffs and higher coffee prices as factors weighing on current performance.

How it may affect me

As a U.S. reader:

• You may experience changes in service and atmosphere as the company advances its turnaround plan to revamp cafes, adjust staffing levels, and refine menu options.

• Local stores may feel busier given the recent rise in customer transactions and sales growth, marking the first increase in foot traffic in two years.

• Investors may observe mixed results as revenue surpassed expectations while profits fell sharply due to tariffs, higher coffee prices, and costs related to the turnaround plan.

Read the story at

Note: All TheBareNews content is AI-generated. For additional context, reporting, and updates, you are invited to explore the news outlets linked above.