Demand is picking up at Starbucks, which indicates this CEO Brian Niccol’s change efforts are working.

The company said Wednesday that sales at U.S. stores open for at least a year rose 4%. This growth was primarily due to a 3% increase in purchases from existing customers and a 1% increase in the average amount spent per transaction. This is the first spike store sales in eight quarters.

Globally, in-store sales also rose 4% as existing customers bought more and spent slightly more per purchase.

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The global coffee chain, which revised its strategy and launched a turnaround plan under Niccol in September 2024, beat Wall Street expectations on sales and revenue but missed profit, known as earnings per share, estimates.

The company reported $9.9 billion in revenue and reset its full-year targets on Wednesday. Shares of Starbucks are up $16.24 so far this year, up 19.34%.

People walk past a Starbucks coffee shop in Manhattan, New York, United States on January 15, 2025. (Mostafa Bassim/Anadolu via Getty Images/Getty Images)

The company will host its first investor day under Niccol on Thursday in New York, as it pushes the chain to return to its coffee shop roots and encourage customers to stay rather than rush out.

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“Our first quarter results demonstrate that our ‘Back to Starbucks’ strategy is working and we believe we are ahead of schedule,” Niccol said in a statement. “It’s great to see sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”

Niccol has said, even before its latest earnings, that the company was making progress on its turnaround plan.

Starbucks CEO Brian Niccol looks on during the Golden Bear Pro-Am before the Memorial Tournament presented by Workday 2025 at Muirfield Village Golf Club on May 28, 2025 in Dublin, Ohio. (Michael Reaves/Getty Images/Getty Images)

In September, Niccol told FOX Business that the coffee chain was “ahead of schedule” on its turnaround, though he acknowledged that the work was far from over.

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Niccol is banking on an “aggressive” redesign, an enhanced rewards program, and a variety of new food and beverage offerings to drive momentum and reverse declining traffic.

While it’s not Niccol’s first turn, having helped Taco Bell and Chipotle weather their own storms, he became Starbucks’ third CEO in two years, inheriting a company that faced pressure from nationwide union campaigns and consecutive disappointing fiscal quarters as traffic declined a year ago.

A Starbucks coffee shop worker makes a drink at the Detroit Metro Airport in Michigan. (Jim West/UCG/Universal Images Group via Getty Images/Getty Images)

Starbucks stores in the U.S. have continued to experience a decline in store visits at a time when broader environmental factors have made consumers more mindful of where they spend their money.

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But Niccol emphasized his confidence in the company’s trajectory, noting that several initiatives have been implemented more quickly than he initially expected, including a new protein menu coming in late September and the Green Apron Service model. This service model leverages tools like its smart queue to sequence orders across mobile pickup, car service and the cafe so they don’t compete with each other, effectively reducing customer wait times.