Starbucks is undergoing a major renovation. There are signs that it is working.

Starbucks is back to the daily grind for consumers.

The company’s year-long transformation campaign is gaining more ground, executives said on a conference call on Wednesday. Same-store sales began growing year over year in the fiscal fourth quarter after a year and a half of decline. Business has improved among Starbucks Rewards members and less frequent visitors, showing that the Back to Starbucks campaign is on the right track, CEO Brian Niccol said.

Comparable sales at Starbucks-operated stores in the U.S. “turned positive in September, driven by transactions.” [has] “It remained positive through October, reflecting the momentum building in our business,” Nicol said, according to a transcript made available by AlphaSense.

Same-store sales in North America were flat in the quarter ended Sept. 28 compared with the same period a year earlier, snapping a six-quarter streak of negative numbers, according to data from Visible Alpha. Globally, same-store sales reflected a long period of decline, growing 1% year-on-year.

Niccol launched Back to Starbucks shortly after taking over as CEO in September 2024. The plan calls for managing a high volume of orders more efficiently from phone, counter and takeout apps, and making coffee shops a more organized and welcoming place to relax. As part of the initiative, Starbucks is investing in better hiring and renovating its cafes, but is also closing locations and laying off white-collar workers.

Shares of Starbucks ( SBUX ), which gained ground in the months following Nichol’s hiring, have lost about a quarter of their value since hitting their highest level for the year in March. The stock closed Thursday’s session down about 1%.

The coffee shop giant reported mixed financial results for its fiscal fourth quarter. Its revenue jumped 5% year over year to $9.6 billion, higher than analysts’ expectations of $9.1 billion, according to consensus estimates compiled by Visible Alpha. Adjusted earnings per share of 52 cents came in below analysts’ expectations of 55 cents.

Chief Financial Officer Cathy Smith said it may take some time for Starbucks’ sales growth to show up in earnings. “We made the right plan,” Smith said, according to the transcript. “Earnings will lag. So we said you have to grow revenues first, then profits will follow.”

Correction and Update: This article has been updated to correct the name of the executive who commented on the earnings forecast and to include the latest stock price information.