Starbucks Reports Strong Quarterly Sales Driven by Holiday Drinks and Viral Bear Cup

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Starbucks reported strong fiscal first quarter results, with same-store sales rising 4% and revenue increasing 6% to $9.9 billion. The company's performance was driven by holiday drinks and the viral popularity of its $29.95 glass bear-shaped cups, which sold out quickly after being introduced in November. While Starbucks' adjusted earnings per share of 56 cents fell short of Wall Street expectations, the company's U.S. traffic was up despite a strike by more than 1,000 unionized workers.

Why it matters

Starbucks' strong quarterly results demonstrate the continued appeal of its seasonal offerings and the power of viral marketing, even as the company faces labor challenges and rising costs. The performance provides a positive sign for the coffee giant as it works to improve service and create a more welcoming in-store experience for customers.

The details

Starbucks' same-store sales rose 4% in the October-December period, driven by a 3% increase in transactions and a 1% increase in spending per visit. Revenue grew 6% to $9.9 billion, beating Wall Street expectations. However, the company's adjusted earnings per share of 56 cents fell short of the 59 cents analysts had forecast, as investments in labor and tariffs on coffee have pressured margins. Starbucks' U.S. traffic was up despite a strike by more than 1,000 unionized workers, which temporarily closed some stores but did not significantly disrupt the company's popular Red Cup Day promotion.

• Starbucks reported results for its fiscal first quarter, which covers the October-December 2025 period.
• The company introduced its $29.95 glass bear-shaped cups in November 2025.