Starbucks on Wednesday reported robust gains in sales last quarter, which it said was a sign that the coffee giant’s turnaround plan was progressing faster than expected.

Sales at U.S. stores open for at least a year were up 4% in the quarter ending Dec. 28, versus the prior year, surpassing analysts’ forecasts.

“We’re pleased with our progress, and we believe we remain ahead of schedule, and we’re confident on our path forward,” Brian Niccol, the chain’s CEO, told analysts and investors on a call Wednesday morning. “But we also recognize that we’re still in our turnaround.”

Niccol, who joined Starbucks in late 2024, has focused on addressing frequent customer complaints, from long waits for coffees to a lack of seating. Increased competition from other coffee chains, as well as belt-tightening by some consumers, had also led to subdued results in recent years.

In the past year, Niccol has moved quickly, putting his mark on the top executive ranks; reducing corporate head count by 2,000 employees; shuttering underperforming stores; adding staff at the company’s stores to improve service times; and spending to remodel some locations.

On the call, Niccol highlighted that restaurants that had increased the number of employees working during peak hours were getting customers their beverages and food, on average, in under the company’s four-minute target.

Starbucks has also reduced the total number of menu offerings by as much as 30% in the past year. At the same time, it has introduced new items, like drinks with protein cold foam toppings, that are being well received, the company said.

Last quarter, the company had more foot traffic, and the average amount that customers spent per visit was also up. Some of the gains in traffic may have come from the release of a holiday-themed glass cup that became a viral sensation.

During the quarter, revenues rose 5%, to $9.9 billion. But profit was down more than 60%, to $293 million, with expenses rising sharply as the company hired more workers in stores. Margins also took a hit from higher wholesale coffee prices and tariffs, the company said.

Overall, global same-store sales rose 4% from a year ago, with sales from international markets climbing 5%. China stood out, with gains of nearly 7%.

This article originally appeared in The New York Times.

https://www.courant.com/2026/01/29/starbucks-says-turnaround-ahead-of-schedule-as-sales-rebound-3/