Starbucks CEO Brian Niccol discusses the company’s recovery following its Investor Day

Starbucks Shows Signs of Recovery Amid New Challenges

Starbucks is finally experiencing a much-anticipated rebound, though new issues have also surfaced.

Shareholders have been eager for evidence that CEO Brian Niccol, previously at the helm of Chipotle and a key marketing leader at Yum! Brands, is steering the company in the right direction. This week, Niccol delivered several encouraging developments.

In its latest quarterly report, Starbucks revealed that U.S. same-store sales have increased, thanks to the introduction of protein-infused coffee, enhanced food selections, and more efficient service. The company also reported robust growth in China, marking a significant milestone.

During an Investor Day event in New York City, Starbucks outlined strategies to maintain this positive momentum. Plans include launching new beverages such as a matcha line, expanding food options to attract more afternoon customers, upgrading its rewards program, and renovating stores to improve seating and comfort.

Niccol has had a busy week implementing these initiatives.

Speaking to Yahoo Finance, Niccol attributed the turnaround to several factors, highlighting faster order processing and improved performance from store teams as key contributors.

Starbucks CEO Brian Niccol samples the new Starbucks 1971 Dark Roast at the Investor Day event in New York City, January 29, 2026. REUTERS/Brendan McDermid

This progress comes alongside a new company policy requiring Niccol to use Starbucks’ private jet for all travel, following an independent security assessment that identified credible threats due to his high-profile role and increased public visibility.

Previously, Starbucks capped Niccol’s personal, non-commuting flights at $250,000 per year.

Reflecting on the enhanced security measures, Niccol admitted, “That’s something I didn’t fully anticipate. I knew Starbucks was a globally recognized brand and that people are passionate about it, but I didn’t expect the need for such heightened security.”

Highlights from Starbucks’ NYC Investor Day

• Plans to add 25,000 additional seats to U.S. stores by the end of the fiscal year.
• Initiatives to boost afternoon business with new energy drinks and wraps.
• A revamped rewards program launching March 10, featuring three tiers: Green, Gold, and Reserve, each offering unique benefits.
• Long-term goal to open 5,000 more Starbucks locations in the U.S.
• Ambition to double its international store count, with a strong focus on growth in China.
• Targeting $2 billion in cost reductions over the next two years.
• Projected earnings per share for fiscal 2028 are set between $3.35 and $4.00, aligning with top analyst expectations. The company is currently in fiscal 2026.

Wall Street Analysts Respond Positively

Chris O'Cull of Stifel, who rates Starbucks a Buy with a $105 price target, commented that the company presented a convincing strategy at Investor Day, aiming for over 5% revenue growth and an EBIT margin between 13.5% and 15% by fiscal 2028. He noted that Starbucks is accelerating innovation and leveraging global marketing to drive these results.

O'Cull also highlighted operational improvements, such as the upcoming Mastrena III espresso machine, which will significantly speed up drink preparation, and the new "Grow Report" system to enhance accountability at the store level. He believes these cultural and technological changes will help translate brand loyalty into increased transactions and higher margins.

Danilo Gargiulo of Bernstein, who gives Starbucks an Outperform rating and a $100 price target, expressed confidence that the company could surpass its 2028 earnings guidance. He pointed out that achieving the upper end of the forecast depends on consistent same-store sales growth and realizing planned cost savings—goals he believes are attainable through ongoing innovation, afternoon business expansion, and digital engagement.

Gargiulo was especially encouraged by Starbucks’ commitment to keeping price increases below inflation, which should strengthen its value proposition. He also noted that the company’s projections are conservative regarding sales mix, suggesting that expanded food and protein offerings could drive substantial check growth in the next few years. With margins potentially reaching 15% by 2028 and strong incremental profit flow-through, he remains optimistic about Starbucks’ profitability.