Starbucks stock pops on return to sales growth

Starbucks $SBUX stock was rising more than 6% on Wednesday morning, after coffee giant released quarterly results that show a long-awaited return to sales growth.

Here's what to know.

Revenue pop, stock pop

Revenue rose 6%, even as overall earnings fell. Global same-store sales grew a total 4% as the company reported both increasing ticket sizes and increasing same-store sales in North America and internationally. China sales were a particularly strong point, clocking in at 7% growth with a similar mix of order sizes growing and same-store sales increasing.

Year over year, the figures demonstrate a return to growth for the chain overall. Store count has also increased by about 700 stores over the same period. The company now has more than 41,000 stores worldwide, with about 48% licensed and 52% operated by the company.

Earnings contraction amid 'Back to Starbucks' effort

The earnings contraction, which saw both GAAP and non-GAAP margins hard hit, shrinking by hundreds of basis points, was “primarily driven by labor investments in support of ‘Back to Starbucks’ and inflationary pressures, largely driven by elevated coffee pricing and tariffs,” the release said. At the same time, the release trumpeted the “sales momentum,” driven by “customers choosing Starbucks more often.”

“Our Q1 results demonstrate our 'Back to Starbucks' strategy is working and we believe we're ahead of schedule,” said CEO Brian Niccol. The company has described the strategy as "our plan to revitalize Starbucks by focusing on what has always set us apart: a welcoming coffeehouse where people gather and where we serve the finest coffee."

Workers' strike continues

Even so, the Starbucks Workers United strike continues. The strike began in November 2025, overlapping with the period reported in Wednesday’s earnings release. The union seeks to increase staffing at stores, obtain higher per-hour pay, win more hours for part-time workers, and hopes for redress of labor-law violations. It represents some 11,000 Starbucks workers across 550 stores, per its website.

The earnings release makes no mention of the strike, aside from a boilerplate description of the “inherent risks of operating a global business, including changing conditions in our markets, local factors affecting store openings, protectionist trade or foreign investment policies, such as tariffs and import/export regulations, economic or trade sanctions, compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages.”