The company’s “Back to Starbucks” strategy is working and running ahead of schedule, Niccol said in a Wednesday earnings release.
During the quarter ended Dec. 28, 2025, Starbucks saw its global comparable store sales increase 4%, with North America and U.S. comparable sales up 4% and international ones up 5%, according to the release.
U.S. comparable transactions increased 3%, marking the first time there was growth in that metric in eight quarters, per the release.
Niccol said during the call that Starbucks saw growth in both rewards transactions and non-rewards transactions for the first time in nearly four years.
“So, two things happened: people came back to the brand, and we also drove engagement or more frequency with our existing customers,” Niccol said. “So, that’s a really strong foundation.”
Advertisement: Scroll to Continue
Niccol previewed the Back to Starbucks strategy in a September 2024 letter to partners, customers and stakeholders, saying he intended to guide the coffee giant back to its roots while navigating the future. His plan included providing baristas with the tools and time needed to craft exceptional drinks, ensuring a personalized and consistent customer experience, improving supply chain logistics and enhancing the mobile order program.
During Wednesday’s earnings call, Niccol said, “I’m most excited that our turnaround plan is coming to life in the way we envision. First, turn around the top line, and then earnings growth will follow.”
Moving forward, there are opportunities to gain efficiencies with technology solutions, both in the coffeehouses and in its support centers around the world, Niccol said.
“A key piece of our path forward is technology,” Niccol said.
Starbucks recently added Amazon veteran Anand Varadarajan as its new chief technology officer, Niccol said. Varadarajan most recently served as Amazon’s president of worldwide grocery technology.
“I am confident his leadership and knowledge will result in step change improvements across all our technology platforms,” Niccol said.
Starbucks scaled a new generative artificial intelligence-powered virtual assistant called Green Dot Assist across its North American coffeehouses in November 2025, and the company has found that the tool helps users with tasks such as troubleshooting operational issues and adjusting deployment plans, Niccol said.
“It also provides a strong foundation to test and learn, then develop and scale thoughtful AI solutions that reduce friction for partners and help them focus on craft and connection with our customers,” Niccol said.
Starbucks’ “innovation pipeline” is full of new digital experiences, Niccol said later in the call.
