Starbucks Reports Better-Than-Expected Sales Growth Under CEO Niccol's Turnaround Plan

Starbucks reported quarterly sales growth that beat Wall Street expectations on Wednesday, signaling that CEO Brian Niccol's turnaround strategy may be gaining traction.

The coffee chain said sales rose 4% from the prior year during the last quarter—stronger than analysts had predicted. The results come roughly a year after Niccol was brought in as chief executive to address customer complaints about long wait times and limited seating, while also navigating increased competition in the coffee market.

Niccol's approach has included moves that drew criticism from workers. He laid off 2,000 corporate employees and shuttered underperforming locations. Still, investors responded favorably to the earnings report: Starbucks stock climbed about 5% Wednesday morning.

The company also expanded Niccol's compensation by removing caps on his personal use of the corporate jet, citing his personal safety as the reason.