Starbucks stock jumps as the coffee giant's turnaround starts to click

"The coffee giant reported 4% same-store sales growth globally, driven by higher ticket sizes and transactions, and posted its first comparable transaction growth in the US in eight quarters. North America and US comparable store sales increased 4%, while international comparable store sales increased 5%, and Chinese sales increased 7% after Starbucks announced in November that it was selling a 60% controlling stake in its China business to Boyu Capital."

""I'm most excited that our turnaround plan is coming to life in the way we envision, first turn around the top line, and then earnings growth will follow," Niccol said. "And I'm delighted to say we are now achieving top-line growth driven by transactions, and we have clear plans on how we expect to turn top-line growth into margin and earnings growth.""

Starbucks posted Q1 results showing 4% global same-store sales growth driven by higher ticket sizes and transactions, and recorded the first comparable transaction growth in the U.S. in eight quarters. North America and U.S. comparable store sales rose 4%, international comparable store sales rose 5%, and Chinese sales increased 7% following the November sale of a 60% controlling stake in the China business to Boyu Capital. The stock rose more than 7% in premarket trading. CEO Brian Niccol attributed the results to momentum from the "Back to Starbucks" revitalization, saying the company is achieving transaction-driven top-line growth and has plans to convert that into margin and earnings growth.

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