TLDR:
- Starbucks stock jumped nearly 9% to $108.99 after Q1 earnings report
- Global same-store sales declined 4%, but less than expected
- New CEO Brian Niccol launched “Back to Starbucks” turnaround initiative
- Company operates over 32,000 stores worldwide
- CFO warns of intensified earnings pressure in current quarter before potential improvement
Starbucks Corporation shares demonstrated strong market performance on Wednesday, January 29, 2025, climbing 8.14% to $108.99 following the release of its fiscal first-quarter results.
The coffee giant’s stock movement outpaced the broader market, as the S&P 500 declined 0.47% during the same trading session.
The company’s performance under new Chief Executive Officer Brian Niccol’s leadership showed mixed but promising signals. Global same-store sales declined by 4% in the fiscal first quarter, though this decrease was less severe than analysts had anticipated.
Niccol, who assumed leadership in September 2024, has implemented a comprehensive strategy dubbed “Back to Starbucks.” This initiative includes several customer-focused changes, including the return of coffee condiment bars and ceramic mugs for in-store use.

The turnaround plan also involves a revision of the company’s pricing structure. Starbucks has eliminated upcharges for non-dairy milk and reduced costs for customers who pay for drink modifications, affecting nearly half of its customer base.
In terms of operational scope, Starbucks maintains a substantial global presence with more than 32,000 stores worldwide. The company continues to focus on its core identity as a community coffeehouse while offering premium coffee, tea, snack products, and consumer-packaged goods.
Market analysts have shown varied responses to the company’s recent performance. JPMorgan maintains an “overweight” rating with a $105 price target, citing improving business momentum as a key factor that could drive shares higher.
However, Jefferies analysts expressed a more cautious outlook, maintaining an “underperform” rating with a $76 price target. They suggested that current challenges might persist longer than most investors expect, though they acknowledged potential long-term benefits from the strategic changes.
Oppenheimer took a middle ground, maintaining a neutral “perform” rating. While recognizing the favorable setup under Niccol’s leadership, they expressed uncertainty about the clear path for improvement in same-store sales, margins, and earnings per share.
Chief Financial Officer Rachel Ruggeri provided forward-looking guidance during the earnings call, warning investors that year-over-year earnings pressure could increase in the current quarter. However, she projected improvement in the second half of fiscal 2025.
The company’s stock has attracted substantial institutional interest, with 76 hedge funds holding positions as of the third quarter of 2024. This level of hedge fund involvement places Starbucks among the most widely held blue-chip stocks trading under $100.
As part of its operational improvements, Starbucks is deploying Clover Vertica brewers across all company-operated locations to enhance coffee quality and delivery speed. This move aligns with the company’s focus on streamlining operations while maintaining product excellence.
The company has also implemented a policy requiring customers to make purchases to use cafe spaces and bathrooms, representing a shift in its community space approach.
In the broader market context, Starbucks positions itself among blue-chip stocks, which traditionally offer stability and consistent growth. These characteristics have historically made such stocks attractive to conservative investors seeking to preserve capital while generating steady returns.
The coffee retailer’s menu simplification efforts aim to create a more straightforward product lineup, focusing on fewer, higher-quality offerings to ensure consistency across its locations.
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