New York, January 28, 2026, 14:37 EST — Regular session
- Starbucks shares climbed roughly 1% after an initial surge that soared over 10%
- Global comparable sales in Q1 climbed 4%, driven mainly by higher transaction volume; however, margins took another hit
- Jan. 29 investor day is the next key event, with investors seeking a clearer picture on margin guidance
Starbucks Corp shares climbed roughly 1% to $96.56 in Wednesday afternoon trading, bouncing back after earlier swinging from a 10%-plus jump down to a momentary slide.
The coffee chain posted its first U.S. sales growth in two years, signaling progress under CEO Brian Niccol, who took the helm from Chipotle in September 2024. Executives pointed to protein-infused drinks and cold-foam options as key drivers in drawing customers back. Yet investors remain frustrated, with margins stuck flat for eight quarters running. All focus now shifts to Thursday’s investor day. “Tomorrow is going to be a big day,” said Nick Setyan, analyst at Mizuho Securities. Niccol, meanwhile, cautioned on the post-earnings call that hitting the four-minute service target consistently will take time. 1
Starbucks reported a 4% rise in global comparable store sales for its fiscal first quarter ending Dec. 28, with China leading the way at 7% growth and U.S. transactions up 3%. Revenue climbed 6% to $9.9 billion. However, non-GAAP earnings per share dipped to $0.56, and operating margin contracted by 290 basis points to 9.0%, despite adding 128 net new stores for a total of 41,118 locations. CFO Cathy Smith expressed confidence in converting sales momentum into earnings growth. The company projected fiscal 2026 non-GAAP EPS between $2.15 and $2.40. Starbucks also said its China retail joint venture with Boyu Capital is expected to close this spring, pending regulatory approval. 2
Starbucks shares reacted as investors digested the Federal Reserve’s choice to keep interest rates unchanged, intensifying focus on how long elevated borrowing costs will weigh on consumer spending. 3
A Reuters report from the day before highlighted ongoing supply-chain issues at Starbucks, pointing to problems with an AI-driven inventory tool alongside outdated systems that hamper ordering and forecasting. Starbucks acknowledged the shortages are easing and confirmed efforts to upgrade its systems. Yet Spencer Michiel, a consultant from Back of House, noted that balancing shortage avoidance without generating expensive waste remains “a tightrope to walk.” 4
A filing with the U.S. Securities and Exchange Commission revealed Starbucks submitted its earnings release in a Form 8-K on Wednesday. 5
Yet the stock’s pullback after the morning spike highlights what investors want to see: clear evidence that a labor-intensive turnaround can boost margins. Rising coffee prices, inconsistent service speeds, and any slip-ups in execution could easily stall the sales gains reported this quarter.
The China transaction remains a key variable. Designed to overhaul Starbucks’ approach in its second-largest market, the deal still awaits approvals, and the timing will be critical for maintaining guidance credibility.
Thursday’s investor day on January 29 will be the next key moment, as traders seek clarity on long-term sales and margin goals — plus a clearer timeline for translating sales gains into consistent earnings.
