Starbucks’ turnaround is making progress, and protein is playing a role.
The coffee chain said that its fourth-quarter comparable sales rose 1% globally — the first time in seven quarters that Starbucks has reported an increase. Comparable sales in the US were flat.
New protein-heavy drinks were one of the drivers. Starbucks launched protein cold foam and protein lattes at the end of September, CEO Brian Niccol said on the company’s earnings call on Wednesday. Starbucks had previously said it planned to start offering protein cold foam by the end of 2025, as it looked to capitalize on the high-protein diet craze.
Starbucks customers can now add protein to 90% of the chain’s beverages, Niccol said. Early results from those offerings are encouraging, he said.
Protein-infused beverages are winning over some members of Starbucks’ rewards program, who are visiting the chain more often.
“We’re seeing low-frequency rewards customers show up with more frequency,” Niccol said.
Besides offering customers choices about how they want their protein, Niccol said that Starbucks is also letting patrons flavor their protein drinks. One of the most-ordered cold foams so far is pumpkin-flavored, Niccol said.
Niccol called the protein beverages “the first step” for Starbucks in offering more options focused on health and wellness.
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“The feedback that we’ve heard on protein specifically is it’s a tremendous value with the customization,” he said.
Niccol joined Starbucks as CEO in September 2024 from Chipotle. After helping the Mexican grill chain make a comeback, analysts hoped that he could do something similar at Starbucks, which has struggled with declining sales over the past few years.
Starbucks has made a variety of changes over the past year under Niccol’s leadership, from investing in more hours for its baristas to laying off staff at its corporate headquarters in Seattle and shuttering hundreds of stores.
While Niccol said that he was “not declaring any victory” after Starbucks reported a comparable sales gain on Wednesday, he said the results showed Starbucks is making progress.
“It gives us confidence that we really have turned the page to a new chapter in our turnaround,” Niccol said.
