Rachel Warren

So, Starbucks, it was a quarter of mixed performance, which I think is something we've seen for a while, but there was some improvement in a few key areas.

We saw some signs of turnaround in consumer traffic.

They actually beat on revenue, and this was even as profit was below what analysts were hoping for.

So, global and U.S.-comparable store sales increased by 4%.

year over year, and that was a significant return to growth that was driven by a 3% increase in traffic.

So this is some indication that customers are actually returning to cafes, that Starbucks back to Starbucks strategy might be working.

Net revenue was up about 6% year over year.

Same store sales in China grew 7%.

And this is something that's notable.

I mean, this is the second largest market for Starbucks.

It's been an area in which they have been struggling.

I think one thing that is clear from their results this quarter and in recent ones is the company is really sacrificing immediate profit for long-term growth.

They're investing in wages, in their labor force, and in technology in a bid to get back to more sustainable growth.

One of the things that I will note, in China specifically, the company's in the process of entering a joint venture with Weiyu Capital to operate its retail presence in China.

So, they'll reduce their direct stake.

They're going to turn to a licensing model while maintaining brand control.

It's a more asset-light approach.

It's one that they have turned to in a lot of their newer international markets in Europe, in the Middle East, in Africa.

They're viewing fiscal 2026 as a transition year.

And I think that's something that's important to note.