starbucks is back — at least that’s what executives said at the company’s investor presentation in New York City on Thursday.
“Starbucks is back today,” said Chief Brand Officer Treci Lieberman. “One in three consumers say Starbucks is their first choice for coffee or tea on the go.”
Her declaration comes more than a year after CEO Brian Nicol joined the company and began a turnaround strategy dubbed, of course, “Return to Starbucks.” The plan was primarily aimed at improving the in-store experience at the coffee chain, which has prioritized mobile ordering and profits at the expense of customers and employees. The strategy included small changes like reintroducing condiment bars and requiring baristas to use a Sharpie to write personal messages, as well as big investments like hiring more baristas and renovating the cafe at a cost of $100,000 per cup.
“Frankly, the shine has returned to Starbucks both here in the U.S. and around the world,” Nicol said Thursday.
The company’s latest financial results appear to show that customers are returning and the turnaround is taking hold. As a result, Starbucks plans to look forward, not backward, this year.
“In fiscal 2026, we will shift to attack and innovation,” Nicol said. “While our ‘Back to Starbucks’ plans and broader transformation are far from over, we are confident in our strategy, progress, pace of change and the opportunities ahead of us.”
The coffee chain projects global and U.S. same-store sales growth of at least 3%, revenue growth of at least 5% and earnings per share of $3.35 to $4 by fiscal 2028. The company also plans to add more than 2,000 cafes worldwide in fiscal 2028, including 400 brand-new company-owned U.S. stores.
“This is just a turning point for us; our ambitions extend far beyond this timeline,” Nichol said.
In the coming months, Starbucks plans to reintroduce tiers to its loyalty program and launch energy refreshers and more efficient espresso machines in an effort to meet these new financial goals.
Starbucks investors appeared less confident than executives Thursday, with the company’s stock down more than 1% in morning trading. The stock has fallen about 12% over the past year, dropping Starbucks’ market value to about $109 billion. In addition to skepticism about the company’s recovery, investor concerns about a broader decline in consumer spending and soaring coffee prices are weighing on the company’s valuation.
“It’s just the beginning.”
The investor day comes a day after the company released its first quarter earnings report.
The coffee chain’s foot traffic increased for the first time in two years, and same-store sales rose 4%. A year ago, the company’s same-store sales were down 4% and transaction value was down 6%.
CEO Brian Nicol told CNBC’s “Squawk Box” Thursday morning that the company is making progress on some of its goals, such as making every drink in under four minutes.
“This is really just the beginning,” Niccol said of the company’s turnaround.
But while Starbucks’ turnaround strategy is paying off in sales, investments in its restaurants and workforce weighed on profits in the first quarter. The company’s quarterly earnings per share fell short of Wall Street expectations.
Executives on Wednesday released the company’s full-year outlook for the first time since Nicol put it on hold more than a year ago, shortly after joining the company’s leadership team. Starbucks expects fiscal 2026 adjusted earnings per share to be in the range of $2.15 to $2.40, with global and U.S. same-store sales growth of at least 3%.
Menu changes such as protein cold foam have helped Starbucks attract both regular and infrequent customers, Nicol told CNBC’s Andrew Ross Sorkin. Going forward, the company plans to further innovate its menu, as well as make changes to its rewards program and improve its digital experience, he added.
Of course, much of that innovation will focus on Starbucks drinks. Lieberman said in an investor presentation that the coffee chain plans to launch a premium version of chai this spring that doesn’t contain sugar.
Starbucks also plans to introduce Energy Refresher, the latest expansion of its $2 billion drink line. The new addition contains more caffeine than the original refresher, giving drinkers almost the same effect as caffeinated soda.
Starbucks China base
Executives also shared more details about the company’s international operations, which are set to undergo a major shake-up as Starbucks forms a joint venture with Boyu Capital to operate in China, the company’s second-largest market.
Following completion of the transaction in the second quarter of fiscal 2026, and subject to regulatory approvals, Boyu will own up to a 60% interest in the joint venture.
Although the partnership will reduce overseas revenue, the division’s asset-light model is expected to boost Starbucks’ profits in the long run. Over the past 10 years, mcdonalds and coca cola The companies pursued similar strategies, refranchising their international restaurant and bottler franchises to reduce operating costs and increase profits.
Starbucks’ international profit margin for fiscal 2025 was 13%. Starbucks International CEO Brady Brewer said the company expects profit margins to rise to the high teens once the joint venture is established.
Both fiscal 2026 and fiscal 2028 forecasts assume that the company will continue to operate Starbucks retail stores in China. The company expects margins to increase as part of the plan, but overall profits may not increase immediately.
Under the joint venture model, the company’s earnings per share in fiscal 2028 would be about 15 cents lower, CFO Kathy Smith said.
“What I’m saying is that’s our current plan for the Chinese market,” Smith said. “We fully expect to actually see higher growth in China with our new partners…so we think we can offset some of that going forward.”
