Starbucks is back in growth mode, months after closing hundreds of locations, laying off corporate employees and redesigning its cafes as part of a multiyear turnaround.
The Seattle-based coffee chain plans to open 600 to 650 locations across the globe this year, driven by rising customer visits that are expected to boost global store sales by at least 3% this year.
Revenue jumped 5% to $9.9 billion in the firm’s fiscal first quarter that ended Dec. 28, from $9.4 billion in the prior-year period, as the chain added 128 net new locations.
“We're pleased with our progress, and we believe we remain ahead of schedule,” Brian Niccol, who has now logged 16 months as chief executive officer of the coffee chain, told analysts Wednesday. “We are clearly in the early stages of our turnaround, and we have clear plans to maintain our top-line performance while improving the foundations of our business.”
The progress comes just four months after Starbucks closed 627 unprofitable or under-performing stores during its fiscal fourth quarter — with 90% of them in North America — as a post-pandemic drop in customer foot traffic, competition from upstart rivals and a growing preference for drive-thru service have taken their toll on the coffee giant.
Starbucks is spending heavily to make its cafes more inviting for customers by boosting staffing, investing in training and upgrading cafe ambience and service.
More store upgrades
The firm has finished upgrades at about 200 locations, mainly in Southern California and New York City, and is on track to finish more than 1,000 renovations by the end of this fiscal year.
A variety of approaches helped fuel U.S. sales and store traffic in the latest quarter, such as the firm’s Bearista cup drop and holiday launch promotion, the return of seasonal beverages and the launch of the chain’s new Green Apron service model last year to bolster staffing and speed up orders.
“The shine is back on our brand, both in the U.S. and around the world,” Niccol said.
Despite closing hundreds of cafes in North America last year, Starbucks ended 2025 with 41,118 cafes worldwide, slightly more than 40,576 in the previous year, mainly due to the firm's international growth.