Starbucks CEO Brian Niccol just put a positive spin on lagging sales. His pep talk may explain why the stock is up

Starbucks announced its third-quarter financial results on Tuesday, July 29, presenting a company in a high-stakes race to institute major changes, but not quite there. 

The coffee chain reported its sixth quarter in a row of declining same-store sales. These numbers dropped 2% globally, though most stores outside North America reported flat sales. In the United States, a 2% drop was better than the 2.5% decline that Wall Street had predicted, according to consensus estimates cited by CNBC. In China, Starbucks’s second largest market, comparable store sales increased by 2% due to a rise in transactions.

“While our financial results don’t yet reflect all the progress we’ve made, the signs are clear — we’re gaining momentum,” Brian Niccol, chairman and CEO of Starbucks, stated in an accompanying video.

Niccol, who joined Starbucks as chief executive in September of last year, previously orchestrated a turnaround at Chipotle Mexican Grill, following a food safety crisis at the burrito chain.

Starbucks reported $9.5 billion in consolidated net revenues—an increase of 4%. 

‘We’re ahead of schedule’

A pep talk from Niccol appears to have helped to satiate investors, with Starbucks stock (Nasdaq: SBUX) rising over 5% through after-hours and into premarket trading on Wednesday.

“We’ve fixed a lot and done the hard work on the hard things to build a strong operating foundation, and based on my experience of turnarounds, we are ahead of schedule,” Niccol stated in a release. “In 2026, we’ll unleash a wave of innovation that fuels growth, elevates customer service, and ensures everyone experiences the very best of Starbucks. We’re building back a better Starbucks experience and a better business.”

Niccol has been championing a “Back to Starbucks” plan. It “focuses on exceptional service, simplified routines, and deeper customer connections.” Basically, Starbucks wants to rehumanize itself. This process includes expanding the assistant store manager role and internally hiring 90% of retail leadership. 

Oh, and Starbucks is bringing back seats. In an era of machines, mobile orders, and depersonalization, Niccol has decided that Starbucks’s cafes should be warm, textured, and have ample seating.