Starbucks Reports Q4 Sales Growth Amid Turnaround Plans, Store Closures

Starbucks is undergoing a significant turnaround under CEO Brian Niccol, focusing on improving customer experience and service quality through the 'Back to Starbucks' initiative and its Green Apron service program. This approach, which includes adding staff to stores and introducing innovations like the protein cold foam, has led to a 1% global increase in same-store sales and improved customer perception and brand affinity, marking the first growth in seven quarters. Despite mixed quarterly financial results, including a slight miss on earnings per share expectations, Starbucks has seen gains in service time, connection, and care perception, which are helping to rebuild its market share and value perception. The company is addressing past issues such as mobile order backups with new systems like SmartQ, aiming to enhance speed and customer interaction, particularly during critical morning hours. While some criticism remains about leadership and company policies, the overall strategic focus on service and community roots is viewed positively by analysts as a path toward sustained recovery. Starbucks hopes these efforts will attract both high-frequency and new customers, reinforcing its position as a leading coffeehouse brand globally.