It has been an eventful week for one of America’s most recognizable coffee chains.
Starbucks on Wednesday reported its first quarter of same-store sales growth in the U.S. and North America in two years, an early milestone in the company’s turnaround under CEO Brian Niccol. For its fiscal first quarter ended Dec. 28, same-store sales rose 4%, doubling analyst expectations for a 2% increase, driven by higher traffic, with comparable transactions up 3% and average ticket rising 1%.
The quarter marked the company’s first positive same-store sales performance in the region since the first quarter of fiscal 2024.
“Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule,” said Niccol. “It’s great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”
Niccol pointed to the viral Bearista Cup, healthier menu choices, and a stronger sense of value as key drivers of the quarter’s performance.
Outside the U.S., Starbucks posted 5% international same-store sales growth, with China, the company’s second-largest market, delivering a 7% increase.
On Thursday, Starbucks said it will reintroduce “tiers” to its North American loyalty program, aiming to encourage more frequent visits as part of its broader turnaround strategy.
Starbucks Rewards has been in place since 2009, and the company has long leaned on the program to drive customer engagement and spending. In fiscal 2025, transactions tied to the Rewards program accounted for roughly 60% of Starbucks’ revenue.
Starbucks moved away from a two-tier system in 2019, arguing at the time that a simpler structure would help newer members become more engaged. The company now says that approach failed to adequately recognize its most loyal customers.
The tiered structure will return on March 10, this time with three levels.
Under the revamped program, Starbucks Rewards members with fewer than 500 “stars,” or points, will fall into the green tier. Benefits include a free drink or food item on a member’s birthday, early access to select menu items, and personalized offers. Stars earned at the green level will expire after six months, though members can extend their expiration by making a purchase or redeeming a reward.
Customers who accumulate 500 stars within a 12-month period will be upgraded to the gold tier. At that level, stars do not expire, and members earn 1.2 stars for every dollar spent.
Members can advance to the reserve tier after earning 2,500 stars over a 12-month period. Reserve-tier customers receive access to exclusive merchandise and events and earn 1.7 stars per dollar spent.
Under the current Starbucks Rewards structure, members earn two stars for every dollar spent when paying with a preloaded Starbucks gift card. Payments made with a credit or debit card earn one star per dollar.
The company is also introducing “Free Mod Mondays,” which will allow loyalty members to add one complimentary customization to any drink on a designated Monday once per month.
Looking ahead, Starbucks projects global and U.S. same-store sales growth of at least 3% by fiscal 2028, alongside revenue growth of at least 5% and earnings per share in a range of $3.35 to $4. The company also plans to open more than 2,000 cafés globally in fiscal 2028, including 400 net new company-owned locations in the U.S.
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