Brian Nicol talks about transformation

Starbucks It is expected to issue long-term forecasts and share more details about how it plans to achieve those financial goals at an investor presentation held in New York City on Thursday.

When Starbucks suspended its outlook in October 2024, its long-term outlook predicted global same-store sales would grow at least 5%, revenue would rise at least 10%, and earnings per share would rise at least 15%.

Starbucks shares have fallen about 5% over the past year, dropping its market value to about $108 billion. In addition to the challenges the company faces, investors are concerned about the broader decline in consumer spending and rising coffee prices.

Investor Day comes a day after the company released its fiscal first-quarter earnings report.

For the first time in two years, traffic at the coffee chain rose, leading to same-store sales growth of 4%. CEO Brian Nicol said on CNBC’s “Squawk Box” Thursday morning that the company has made progress on some of its goals, such as preparing each drink in less than four minutes.

“This is really just the beginning,” Nicoll said of the company’s transformation.

He told CNBC’s Andrew Ross Sorkin that menu changes like cold protein foam have helped Starbucks attract loyal and walk-in customers. He added that the company has more innovations on the menu, as well as changes to its rewards program and an improved digital experience.

But while Starbucks’ turnaround strategy is paying off at the highest level, investments in its restaurants and workers weighed on profits during the fiscal first quarter. The company’s quarterly earnings per share beat Wall Street estimates.

Executives on Wednesday also shared the company’s first annual forecast since Nicole suspended her forecast more than a year ago, shortly after taking the helm at Starbucks. For fiscal 2026, Starbucks expects adjusted earnings per share in a range of $2.15 to $2.40 and global and U.S. store sales growth of at least 3%.

Under Nicole’s leadership, the company is trying to “return to Starbucks,” after years of prioritizing mobile orders and profits over customer and employee experience. Small touches included returning seating to its cafes, asking baristas to write messages on cups again and trimming the menu.

Bigger fluctuations, such as renovating cafes to be more comfortable and hiring more baristas, are dragging profits, but executives expect margins to eventually recover.