Here's Why Starbucks Stock Popped Today After Reporting a Significant Drop in Sales

Shares of coffee giant Starbucks (NASDAQ: SBUX) popped on Wednesday after the company reported financial results for its fiscal first quarter of 2025 -- the first quarter of its hopeful turnaround. Global transactions fell 6% but Starbucks stock was counterintuitively up 7% as of 12:30 p.m. ET. Here's why.As fiscal 2024 was wrapping up, the backwards momentum for Starbucks' business was certainly accelerating. Global same-store sales dropped 7% year over year in the fourth quarter, driven by an 8% drop in transactions. Therefore, while transactions still fell in Q1, the 6% drop was an improvement from Q4. And management says that trends improved throughout the quarter.Starbucks' operating margin took a huge step back as well. In Q1, its operating margin was 11.9% compared with an operating margin of 15.8% in the prior-year period. The company is paying its workers more and dropping the extra charge for dairy substitutes. And a drop in profitability is always concerning.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool