Starbucks is showing a clear shift in momentum as new data signals renewed strength across key markets. This has encouraged analysts who have closely tracked the company’s long struggle to regain stability. Moreover, executives now argue that the latest quarterly numbers prove that the company’s turnaround plan is working. Starbucks recovery reported strong U.S. comparable transaction growth in its fiscal first quarter of 2026. This marks the first increase in eight quarters and highlighting accelerating customer traffic in its core market. Furthermore, the leadership team said that its “Back to Starbucks” strategy continues to build traction. Hence, they believe the brand is regaining relevance among frequent visitors.

This development comes after a difficult stretch for the company. For nearly two years, Starbucks faced slowing traffic, higher labor expenses, weaker performance in China, and operational inconsistency across regions. Yet the early signs of a Starbucks recovery are increasingly visible. In fact, the company delivered a 3% rise in comparable U.S. transactions, a result that reversed the prolonged slump and boosted confidence in its renewed strategic direction. Although margins in North America tightened because of labor investments and rising input costs. Still, the analysts say that improved traffic may form the base for future pricing power and efficiency gains.

Globally, the situation also shows promise. Starbucks reported a 7% rebound in comparable sales and 20% growth in its Channel Development segment. This includes ready-to-drink products that remain strong across global retail partners. Nevertheless, the company’s decision to restructure and sell a controlling stake in its China retail operations created short-term accounting pressure and temporarily reduced earnings. Even so, executives expect this joint‑venture model to strengthen long-term performance.

Additionally, investors received fresh confirmation of positive momentum when the company announced record global holiday-season results for late 2025. This period generated a 4% rise in U.S. same-store sales. This was supported by a strong return of seasonal demand and a more stable operating environment. Analysts noted that the market reacted with renewed optimism as the stock rose nearly 16% year‑to‑date by late January 2026. This highlighted the growing belief that the Starbucks recovery may hold over the next several quarters.

At the same time, the fourth quarter of fiscal 2025 offered additional proof of momentum. Starbucks posted a 5% increase in global revenue driven by new store openings and improving comparable sales. Although profitability weakened because of inflation, tariffs, and labor investments, the company still showed its first positive global comparable sales result in seven quarters. This result added another layer of confidence for investors who had waited for measurable improvements. Moreover, international sales reached a record $2.1 billion in the same quarter, fueled by growth markets like Japan, Mexico, and the United Kingdom.

China, while still recovering, demonstrated modest but steady gains. The region posted a 2% increase in comparable sales and a 9% rise in transactions during the quarter, reinforcing the long-term potential of Starbucks’ second-largest market. Consequently, the company continues to expand its footprint, surpassing 8,000 stores in China and exploring new partnerships to attract investment and maintain royalty streams.

Industry observers caution that several challenges still exist. Margin compression across regions remains a concern, and executives acknowledge that many turnaround initiatives will take time to mature fully. Nevertheless, analysts expect that operational streamlining, reduced store complexity, and stronger global demand will support sustained improvement into 2026.

Overall, Starbucks appears to be entering a more stable phase after years of volatility. While some operational pressures persist, the combination of stronger U.S. traffic, resilient international growth, and positive holiday performance suggests that the Starbucks recovery is gaining tangible momentum. As the company continues to simplify operations, enhance customer experience, and advance strategic restructuring, analysts believe the foundation for long-term growth is solidifying. Although uncertainties remain, Starbucks now moves into 2026 with renewed confidence, strengthened investor sentiment, and an improving global outlook supported by verifiable performance gains.