Starbucks’ (SBUX) turnaround has been achieved and it now appears to be a period of caffeinated growth.
“I think we’ve gone back to being just a growing company. I think the turning point has come. And now we have all these growth opportunities in front of us because we have a solid foundation,” Starbucks CEO Brian Niccol said on Sozzi Unleashed.
Starbucks reported better results than the fiscal fourth quarter on Thursday evening, posting adjusted earnings of $0.80 per share versus an estimate of $0.71.
In addition to the evolution of the results, three highlights were particularly striking.
Global same-store sales jumped 7.2%, and US same-store sales accelerated to 7.7%, driven by good ticket and transaction expansion. The company reaffirmed its strength in the cold drinks and food sector.
Strong sales led to a 460 basis point increase in operating margin to 14%.
Starbucks also offered initial fiscal 2027 adjusted earnings guidance of $3.15 to $3.25 per share, ahead of the $3.14 estimate.
Niccol said the company is revamping its drive-thru to unleash the power of AI, offering more caffeine-free afternoon drinks (think drinks with collagen) and new portable foods to match.
“After a strong quarter that showed significant margin improvement and continued revenue momentum, we believe Starbucks has raised the bar for excellence,” said Danilo Gargiulo, an analyst at Bernstein.
103.89 -1.62 (-1.54%)
At 1:53:25 p.m. EDT. Open market.
Follow Brian Sozzi on X @BrianSozzi, InstagramAnd LinkedIn. Any advice on stories? Email him at brian.sozzi@yahoofinance.com.
Gn bussni
