Starbucks’ earnings report on Wednesday showed a Q1 win, and its stock rose in response.
The coffee giant reported 4% same-store sales growth globally, driven by higher ticket sizes and transactions, and posted its first comparable transaction growth in the US in eight quarters.
North America and US comparable store sales increased 4%, while international comparable store sales increased 5%, and Chinese sales increased 7% after Starbucks announced in November that it was selling a 60% controlling stake in its China business to Boyu Capital.
Starbucks’ stock was up more than 7% in premarket trading at the time of writing on Wednesday.
CEO Brian Niccol said during a call with investors on Wednesday that the Q1 report reflects growing momentum in his “Back to Starbucks” revitalization effort.
“I’m most excited that our turnaround plan is coming to life in the way we envision, first turn around the top line, and then earnings growth will follow,” Niccol said. “And I’m delighted to say we are now achieving top-line growth driven by transactions, and we have clear plans on how we expect to turn top-line growth into margin and earnings growth.”
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