Starbucks executives struck a confident tone Thursday during the company’s investor presentation in New York City, declaring that the coffee giant’s long-running turnaround effort is beginning to pay off and positioning the brand for renewed growth in the years ahead.
“Starbucks is back today,” Chief Brand Officer Tressie Lieberman told investors, citing internal data showing that one in three consumers now name Starbucks as their first choice for coffee or tea consumed away from home.
The declaration comes more than a year after CEO Brian Niccol took the helm and launched a sweeping recovery effort branded “Back to Starbucks.” The strategy was designed to address mounting criticism that the company had prioritized mobile ordering and short-term profitability at the expense of the in-store experience for both customers and employees.
Under Niccol’s leadership, Starbucks has refocused on its cafes with a mix of symbolic and substantial changes. Smaller touches included the return of condiment bars and the requirement that baristas use Sharpies to write personal messages on cups. At the same time, the company made heavier investments, adding labor hours, increasing staffing levels, and spending roughly $100,000 per location to revamp cafes.
“Frankly, the shine is back on Starbucks, both here in the United States and around the world,” Niccol said during the presentation.
Recent financial results appear to support that optimism. Starbucks reported that customer traffic rose in its most recent quarter for the first time in two years, driving same-store sales growth of 4%. That marked a sharp reversal from the same period a year earlier, when same-store sales declined 4% as transactions fell 6%.
Buoyed by those signs of recovery, Niccol said the company is preparing to shift its posture from repair to expansion.
“In fiscal 2026, we’re going to be shifting to play offense and to innovate,” he said. “We’re not finished with our ‘Back to Starbucks’ plan or our broader transformation, but I am confident in our strategy, our progress, the pace of change and the opportunity ahead of us.”
Looking ahead, Starbucks laid out ambitious financial and operational targets. By fiscal 2028, the company projects global and U.S. same-store sales growth of at least 3%, revenue growth of at least 5%, and earnings per share between $3.35 and $4. Starbucks also plans to open more than 2,000 new cafes globally that year, including 400 net new company-owned locations in the United States.
“This is just a waypoint in our turnaround,” Niccol said. “Our ambitions extend well beyond this timeline.”
To support those goals, Starbucks plans several initiatives in the coming months, including the reintroduction of tiers to its loyalty program, the rollout of Energy Refreshers, and the deployment of more efficient espresso machines. The company is also targeting consolidated operating margins of 13.5% to 15% by fiscal 2028.
Chief Financial Officer Cathy Smith said reaching pre-pandemic margin levels will require both revenue growth and disciplined cost management, including $2 billion in cost reductions.
“For us, pricing is going to be our last lever,” Smith said, emphasizing that maintaining a strong value perception among customers remains critical.
Despite management’s confidence, investors reacted cautiously. Starbucks shares fell more than 1% in morning trading Thursday and are down roughly 12% over the past year, leaving the company with a market value of about $109 billion. Investor concerns include skepticism about the durability of the turnaround, signs of softer consumer spending, and persistently high coffee prices.
The investor day followed the release of Starbucks’ fiscal first-quarter earnings report on Wednesday. While sales momentum improved, profits were pressured by higher labor and restaurant investment costs, causing the company’s quarterly earnings per share to miss Wall Street estimates.
Niccol acknowledged that the turnaround remains in its early stages. Speaking “Squawk Box,” he said the company has made progress toward its goal of producing every drink in under four minutes but cautioned against declaring victory too soon.
“This is really just the beginning,” he said.
Executives also provided Starbucks’ first annual outlook in more than a year, after Niccol suspended guidance shortly after becoming CEO. For fiscal 2026, the company projects adjusted earnings per share between $2.15 and $2.40 and same-store sales growth of at least 3% globally and in the U.S.
Menu innovation remains central to the strategy. Niccol said items such as protein cold foam have helped attract both loyal and infrequent customers. Additional changes to the rewards program and digital experience are also planned. This spring, Starbucks intends to launch a premium, sugar-free version of its chai, according to Lieberman.
The company is also expanding its Energy Refreshers line, a $2 billion beverage category. The new Energy Refreshers will contain more caffeine than the original versions, delivering a boost closer to that of an energy drink than a traditional refresher.
Internationally, Starbucks detailed a major shift in China, its second-largest market. The company plans to form a joint venture with Boyu Capital, pending regulatory approval, with Boyu holding up to a 60% stake once the deal closes in the second quarter of fiscal 2026.
While the move will reduce reported international revenue, executives said the asset-light model is expected to improve profitability over time. Similar strategies have been pursued by companies such as McDonald’s and Coca-Cola through refranchising and bottling partnerships.
In fiscal 2025, Starbucks’ international margins stood at 13%. With the joint venture, margins are expected to rise into the high teens, according to Starbucks International CEO Brady Brewer. However, Smith cautioned that under the current plan, earnings per share in fiscal 2028 would be about 15 cents lower due to the structure of the deal.
“I do want to say that’s with our current plans for the China market,” Smith said. “We fully expect, with our new partner, that actually we would see higher growth in China … and so I would think that we would be able to offset some of that into the future.”
For now, Starbucks is betting that renewed focus on its cafes, customers, and core brand can restore long-term growth — even as investors wait for clearer proof that the comeback will translate into sustained profits.
