Starbucks Turnaround: How CEO Brian Niccol is Seeing Gains

Starbucks CEO Brian Niccol has announced that the corporation’s financial results for the first quarter in fiscal 2026 show a mixed yet promising start to his turnaround strategy.

The earnings call revealed that global comparable store sales increased 4% driven by a 3% increase in comparable transitions, with particular success in China, where store sales increased by 7%.

Starbucks opened 128 new stores in Q1, ending the period on 28 December 2025 with 41,118 stores. Just over half of these are company-owned stores and 48% are licensed.

This resulted in net revenue of US$7,208.50 for the quarter, compared to US$7,071.90 in the equivalent quarter of fiscal year 2025.

Discussing the results, Brian said: “Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule. It’s great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”

Back to Starbucks

Since taking over as CEO in September 2024, the CEO, known for leading successful turnarounds at Taco Bell and Chipotle, has focused on streamlining operations, simplifying the company’s menu and improving the customer experience.

His ‘Back to Starbucks’ strategy is aimed at restoring the brand’s appeal after it suffered from customer complaints about long wait times, complex menus and declining service quality.

As part of his strategy, Brian has invested in new technologies, like voice ordering and AI-powered tools to improve operational speed, alongside refurbishing stores and reintroducing features like hand-written notes and ceramic mugs.

He has also restructured the leadership team at Starbucks, bringing in executives he’s worked with before at Chipotle and Taco Bell to carry out his vision more effectively.

Brian replaced Laxman Narasimhan, who stepped down after just over a year in the role amid declining sales.

As he took to the top seat, the company had suffered its worst comparable in-store sales since the COVID-19 pandemic.

The company’s Chief Financial Officer at the time, Rachel Ruggeri, said: “Despite our heightened investments, we were unable to change the trajectory of our traffic decline, resulting in pressures in both our top line and bottom line.”

Fast forward to 2026, and current CFO Cathy Smith said on the earnings call: “With our ‘Back to Starbucks’ initiatives gaining traction, we have a clear line of sight to translating top-line strength into sustainable earnings growth that positions us for long-term profitable growth.”

Pay as the Starbucks CEO

Despite the signs of growth at Starbucks, the firm disclosed that Brian received a total compensation of US$31m in fiscal 2025. 

This is a sharp decline from the previous year, when his pay was boosted by substantial stock incentives tied to his transition from Chipotle.

According to the regulatory filing posted on 26 January, the CEO’s latest compensation package included a US$5m bonus and nearly US$20m in stock awards, some of which remain performance-based.

Compared to his previous year’s compensation, fiscal 2024 saw the value at US$96m, largely driven by the stock award.