Starbucks (SBUX) posted its first quarter of North America and US same-store sales growth in two years on Wednesday as the company continues its turnaround efforts under CEO Brian Niccol.
In its fiscal first quarter ended Dec. 28, Starbucks reported US and North America same-store sales rose 4%, topping estimates for a 2% rise. The increase was driven a 3% increase in foot transactions and a 1% increase in the average ticket.
Starbucks last reported positive same-store sales for its US and North Ameica unit in the first quarter of its fiscal 2024. Starbucks stock rose as much as 4% following the results.
The company reported same-store sales in China increased 7% in the latest quarter, more than the 2.5% increase Wall Street expected. Foot traffic was up 5% in the region, while the average ticket size was up 2%. Over 60% of Starbucks’ store base is in the US and China. During the quarter, Starbucks sold a majority stake in its China business to Boyu Capital in a deal that valued the business at $4 billion.
Global same-store sales posted a second consecutive quarter of growth, increasing by 4%, more than the 2% increase expected.
Overall, Starbucks reported adjusted earnings per share of $0.56, missing forecasts for EPS of $0.59. Revenue came in ahead of estimates, tallying $9.9 billion against expectations for $9.65 billion, according to Bloomberg data.
“Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule,” CEO Brian Niccol wrote in the release.
There is a “clear line of sight to topline strength into sustainable earnings growth that positions us for long-term profitable growth,” CFO Cathy Smith added.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].
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