On Jan 28, Starbucks ( SBUX , Financial ) released its Q1 earnings print for 2025 . Revenue came in at $9.4 billion, which exceeded market expectations even though global same-store sales dropped by 4%. Same-store sales at Starbucks' U.S. operations decreased by 4% as customer traffic dropped by an 8% margin. CEO Brian Niccol's restoration plan that emphasized user-friendly menus, faster service, and improved guest satisfaction triggered enthusiasm in investors, leading to a 4% share increase after regular trading hours.

Same-store sales across China's second largest market fell 6% as Starbucks was pelted from the rear in the form of growing competition with Luckin Coffee and was hit hard with aggressive pricing deals. The company, too, offers price promotions but has a hard time getting customers to come into the store.

This year, company earnings were above estimates at $0.69 per share, and net income fell to $780.8 million, compared with $1.02 billion in the previous annual period. Since taking the role as a strategic plan, Niccol increased Starbucks' stock value by 30%, and it was reflected in market performance return, as investors signal.

Experienced Taco Bell executives have come on board to make Starbucks' operations better and better. The holiday season is now weeks long in the U.S., but operations continue to be plagued with labor challenges as union members struggle to agree to contracts and stage 300 U.S. locations' week-long strikes.

This article first appeared on GuruFocus .