Starbucks CEO Brian Niccol Says Coffee Chain has Returned to Growth Mode

Starbucks has completed a major part of its turnaround and is now positioning itself for renewed growth, Chief Executive Officer Brian Niccol said, following a strong fiscal fourth-quarter performance driven by higher comparable-store sales in the United States and worldwide.

Starbucks CEO Brian Niccol says the company has completed a major part of its turnaround and is now focused on growth following stronger comparable-store sales and improved operating margins.

“I think we're back to being just a growth company. I think the turn has occurred. And now we have all these growth opportunities in front of us because we've got a strong foundation,” Niccol told Yahoo Finance Executive Editor Brian Sozzi on Sozzi Unleashed in a recent interview.

Starbucks reported adjusted earnings of $0.80 per share for the fourth quarter of fiscal 2026, exceeding analyst estimates of approximately $0.71 to $0.72 per share.

Global comparable coffeehouse sales increased 7.2%, while US comparable sales rose 7.7%.

The gains were driven by increases in both average customer spending and transactions. The company also reported continued strength in cold beverages and food.

Starbucks' non-GAAP operating margin expanded by 450 basis points year over year to 14%, reflecting improved sales performance and lower restructuring costs.

Its GAAP operating margin increased by 790 basis points to 10.8%.

For fiscal 2027, the company forecast adjusted earnings of $3.15 to $3.25 per share, slightly above the analyst consensus estimate of $3.14. It also projected North American comparable-store sales growth of approximately 4% and a non-GAAP operating margin of 13.5% to 14%.

Niccol outlined additional growth opportunities, including modernizing drive-through operations with artificial intelligence, expanding afternoon beverage offerings and introducing more portable food options.

The company is also seeking to build on demand across different dayparts and improve the customer experience.

“After a strong quarter that showcased significant margin improvement and continued momentum on top-line, we believe Starbucks has raised the bar for excellence,” Bernstein analyst Danilo Gargiulo said.

Despite the improvement in comparable-store sales and profitability, Starbucks' consolidated fourth-quarter revenue declined 4% to $9.1 billion, primarily reflecting the transition of its China retail operations to a licensed joint venture model.