![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/05\/GettyImages-2258479966-e1777905298261.jpg?w=2048\")
<\/p>\n<\/p>\n
Starbucks CEO Brian Niccol is living in two realities this week. On social media, he\u2019s become the latest corporate executive to be branded \u201cout of touch\u201d after calling a $9 purchase a \u201creally affordable premium experience.\u201d On Wall Street, he just delivered the quarter that investors had been waiting more than two years for.<\/p>\n
Speaking on the Wall Street Journal\u2019s What\u2019s News AM podcast, Niccol was asked how the coffee chain is navigating the K-shaped economy: the growing gap between high-income and low-income Americans. He said Starbucks is \u201cdoing really well with Gen Z and millennials, and then really had strong performance across all income cohorts,\u201d and noted that the average customer spend comes in at just under ten dollars.<\/p>\n
\u201cIn some cases, you know, a $9 experience does feel like you\u2019re splurging. And then, what that means is we have to make it worthwhile, right?\u201d he said on the podcast. \u201cAnd then in other cases, certain people believe, \u2018Well, this is a really affordable premium experience.\u2019 Because they\u2019re saying like, \u2018Well it\u2019s less than $10 and I get a really premium experience.\u2019\u201d<\/p>\n
Niccol pointed out that though a traditional cup of coffee starts at around $3, customers can \u201cbuild your way into all sorts of customized drinks that people love that move that ticket up.\u201d Add in food and other add-ons, and the average purchase at Starbucks comes out to about $9. When asked whether the company is seeing the effects of economic inequality in its sales, Niccol said, \u201cwe\u2019re not seeing that in our business.\u201d<\/p>\n
\u201cSo, regardless of where you\u2019re stationed in those income cohorts, we want to make that experience worth your while,\u201d he continued. He framed the company\u2019s pricing strategy around perceived value rather than discounts. \u201cThe way we\u2019re going to play the value game is, you\u2019re going to feel like it was worth it,\u201d Niccol said. \u201cAnd it\u2019s not going to be a game of discounting or one-off promotions.\u201d<\/p>\n
A renewed call for boycotting<\/p>\n
Starbucks has weathered boycotts over the last few years due to a number of issues, including its perceived anti-union labor practices and its alleged pro-Israel stance. Starbucks sued its union group for trademark infringement in 2023 after the union posted it was in \u201cSolidarity with Palestine\u201d following the beginning of the war in Gaza, in which over 75,000 Palestinians have been reported killed since the war began on Oct. 7, 2023.<\/p>\n
On social media, people took Niccol\u2019s comments as a reason to renew these boycotting efforts. On the Journal\u2019s social media post of the podcast, remarks ranged from the \u201cout of touch\u201d label to renewed calls for a boycott.<\/p>\n
Many others pointed at another comment Niccol made in the video, in which he said some customers \u201cuse their Starbucks experience as a moment of escapism,\u201d and part of what \u201cdrives that value is to be able to have a great seat, have a great moment of\u00a0connection with a barista.\u201d Amid significant labor strife, Starbucks nevertheless made history in 2021 when it announced a nationwide minimum wage of $15 across its stores.<\/p>\n
A CEO making Wall Street happy<\/p>\n
In 2025, Niccol took home $97.8 million in total compensation, 6,666 times more than what the average worker makes ($14,674), Fortune previously reported. Wall Street analysts argue Niccol is earning his hefty compensation package. The same-store sales numbers were the big beat on Wall Street expectations. Starbucks reported a rise in global comparable store sales of 6.2% in the second quarter of fiscal 2026, fueled by more customer visits, while Wall Street had projected 4% growth. North American comparable sales were up 7.1%. The company raised its annual forecast, pointing to its \u201cBack to Starbucks\u201d turnaround strategy.<\/p>\n
During the company\u2019s earnings call with analysts, Niccol attributed this growth to that strategy. \u201cI believe what we see with folks is when you give them an experience that they feel is unique, differentiated, special\u2014a little touch of luxury\u2014it goes a long way.\u201d<\/p>\n
When its quarterly sales growth\u00a0blew past expectations, the company credited the increase in staffing and employee benefits, with company COO Mike Grams telling Fortune\u2019s Phil Wahba in an exclusive interview, \u201cit really comes from the coffeehouses and the partners who empower them, which has been a focal point of this turnaround all along.\u201d<\/p>\n
Starbucks reported second-quarter fiscal 2026 revenue of $9.5 billion, up 9% year-over-year, marking the first time in more than two years that the company has delivered growth on both the top and bottom line. Adjusted earnings came in at 50 cents per share, up 22% from a year ago, crushing the analyst consensus of 43 cents. Revenue of $9.53 billion cleared the original $9.16 billion Wall Street estimate.<\/p>\n
These results were fueled by investment in local coffeehouses, a spokesperson for the company told Fortune. The company spent about $500 million reinvesting into its stores: adding staff at peak hours and increasing training for baristas, as well as making store upgrades.<\/p>\n
Niccol called it \u201ca milestone for the business\u201d on the earnings call. \u201cOur second quarter marked the turn in our turnaround,\u201d he said. The stock is up about 24% year-to-date. And as a result of the earnings, Starbucks now expects global comparable sales growth of 5% or better, up from its prior forecast of 3% or better.<\/p>\n
The result is what has shown considerable growth despite an era filled with tariff uncertainty and increased inflation concerns. Coffee prices were running roughly $1 per pound higher than a year ago. The average retail price of ground roast coffee spiked 30.5% year-over-year to $9.46 per pound, in part driven by increased tariffs on Brazilian coffee imports.<\/p>\n
On the earnings call, Niccol addressed the import concerns head-on, adding the company sources coffee from 28 countries and has a team navigating their tariff exposure by shifting production to alternate sites.<\/p>\n
Despite the online criticism regarding the average Starbucks purchase, it seems to be driving sales up. With earnings showing a 2.3% increase in the average ticket price, Starbucks\u2019 strategy may be making the internet mad, but it\u2019s working.<\/p>\n
#Starbucks #CEO #Brian #Niccol #premium #experience #divided #reacton<\/p>\n","protected":false},"excerpt":{"rendered":"
Starbucks CEO Brian Niccol is living in two realities this week. On social media, he\u2019s…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[245],"tags":[2463,585,2973,4911,9070,2787,3833,5067,1178,10948,2432],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/5516"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5516"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/5516\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}