Starbucks (SBUX.US) turnaround plan shows initial results! Pumpkin spice returns, driving Starbucks’ strongest weekly sales

According to Jinse Finance APP, global coffee beverage giant Starbucks (SBUX.US) stated that its autumn product update and launch—highlighted by the comprehensive return of the seasonal Pumpkin Spice Latte lineup—has driven a rare surge in Starbucks sales in recent years.

According to informed sources, newly appointed CEO Brian Niccol said in an internal message to all Starbucks employees that this product lineup helped "achieve a record-breaking sales week at our company-operated stores in the U.S. market, while also delivering exceptionally strong sales figures in Canada."

This is undoubtedly major positive news for Starbucks’ fundamentals, which have been sluggish in recent years. The company is striving to reverse a series of declining sales trends.

Under the leadership of Niccol, who previously headed Chipotle Mexican Grill and led the Mexican-style restaurant chain to nationwide popularity and record sales, Starbucks is implementing a comprehensive "turnaround plan" across the United States. The focus is on improving customer service, reshaping the Starbucks menu with ongoing seasonal updates to core products, and making offline stores more attractive by measures such as increasing seating.

Niccol also stated in the internal message that U.S. chain stores have "significantly increased" overall staffing for Starbucks’ offline store system. Recently, Starbucks has allowed U.S. employees to take shifts or rotate at more stores to ensure fewer shift vacancies.

In addition to the Pumpkin Spice Latte, Starbucks’ new autumn menu this year also includes Pumpkin Cream Cold Brew, Iced Pumpkin Cream Chai, and Pecan Crunch Oatmilk Latte. For Starbucks, this is typically a busy operating period and also a time of significant sales expansion. The company is credited with starting the autumn pumpkin craze more than 20 years ago.

As of last Friday’s U.S. stock market close, due to continued sluggish sales, Starbucks’ share price had fallen about 3.4% year-to-date, closing at $88.19; meanwhile, the S&P 500 index has risen about 9.8% so far this year.

Niccol Strives to Fully Reverse Starbucks’ Performance Downturn

Facing multiple pressures such as rising coffee bean prices and the heavy burden of Trump’s tariff policies, Starbucks under Niccol is working hard to reverse the unfavorable situation of significant same-store sales declines for six consecutive quarters. In addition to making Starbucks-branded cafes more attractive to consumers, the newly appointed CEO Brian Niccol is seeking to continuously update the Starbucks menu, increase store staffing, and launch key technologies that simplify the ordering process.

On the operational front, so far, Niccol has implemented a series of major personnel changes, from tightening barista dress code regulations to cutting about 1,100 corporate employees and requiring some staff to relocate to Seattle. Starbucks has also granted some executives stock awards with a target value of $6 million, and it is expected that these larger-scale awards will be realized as they push for a comprehensive business transformation while controlling costs as quickly as possible.

Under Niccol’s leadership, Starbucks is currently taking various proactive measures to boost sales. For example, the return of the Pumpkin Spice Latte, store renovations, and upgrades to the mobile app and mobile ordering system to improve customer experience, as well as the implementation of the "Green Apron Service" model, which aims to standardize and make repeatable the transaction process, sales, and customer service times at its coffee shops. Starbucks stated that stores that have implemented this model have seen improvements in transaction volume, sales, and customer service times.

From a valuation perspective, Starbucks is not cheap. According to analysts’ forecasts for fiscal year 2026 (ending September 2026), its expected price-to-earnings ratio is about 32 times. Analysts believe the company is turning losses into profits, and this process is underway. However, considering the huge costs required for this turnaround and the stock’s valuation level, some Wall Street institutions advise investors to remain cautious. Wall Street giant Citigroup lowered Starbucks’ target price from $100 to $99 in a research report to investors, giving it a "neutral" rating.