earning season has begun and Starbucks is back.

Motley Full Money starts now.

Welcome to Motley Full Money. I'm Travis Hoyam, joined by Rachel Warren and Lou Whiteman.

We really gotten into earnings season. We're in kind of the meat of it over the next couple of weeks.

And the big report this morning was Starbucks. Rachel, what did we learn?

So Starbucks, it was a quarter of mixed performance, which I think is something we've seen for a while,

but there was some improvement in a few key areas.

We saw some signs of turnaround in consumer traffic.

They actually beat on revenue, and this was even as profit was below what analysts were hoping for.

So global and U.S. comparable source sales increased by 4% year over year.

And that was a significant, you know,

return to growth that was driven by a 3% increase in traffic. So this is some indication that

customers are actually returning to cafes that Starbucks back to Starbucks strategy might be

working. Net revenue was up about 6% year over a year. Same store sales in China grew 7%. And this is

something that's notable. I mean, this is the second largest market for Starbucks. It's been an area in which

they have been struggling. I think one thing that is clear from their results this quarter and in recent

ones is the company is really sacrificing immediate profit for long-term growth.

They're investing in wages, in their labor force, and in technology, in a bid to get back to more sustainable growth.

One of the things that I will note in China specifically, the companies in the process of entering a joint venture with Waiu Capital

to operate its retail presence in China.

So they'll reduce their direct stake.

They're going to turn to a licensing model while maintaining brand control.

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