Jan 28 (Reuters) - Starbucks reported a bigger-than-expected rise in first-quarter comparable sales on Wednesday, as demand rebounded in the U.S. after nearly two years in early signs of success of CEO Brian Niccol's turnaround efforts.
The company's shares rose 5% in premarket trading after it also reinstated its full-year targets ahead of its first investor day under Niccol on Thursday in New York.
Niccol has focused on reviving the company's coffeehouse culture in the U.S. to bring back consumers
and fend off newer rivals.
Starbucks has trimmed nearly 30% of its offerings in U.S. stores at the end of 2025 as part of simplifying its menu. Over the last year, the company has shed items such as olive-oil infused beverage line Oleato, and several "frappuccino" beverages to focus on its key lattes.
Comparable sales rose 4% in North America, marking their first gains in nearly two years. The company has shed hundreds of underperforming stores, including its flagship Seattle roastery, and has also tried to lower back-end operational costs.
In the reported quarter, customer traffic was also up on key promotional days such as the annual Red Cup day in December, as well as its holiday merchandise collection item, the Bearista Cold Cup in November, according to data from Placer.ai.
The company reported a 4% rise in quarterly global comparable sales, compared with estimates of 2.25%, according to data compiled by LSEG.
Starbucks expects fiscal 2026 global same-store sales to grow 3% or higher, compared with estimates of a 2.94% rise.
The company expects fiscal 2026 adjusted profit to be $2.15 to $2.40 per share, the mid-point of which is below estimates of $2.35.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Sriraj Kalluvila)
