SBUX 2026 Q3

Management raised full year fiscal 2026 guidance, now expecting U.S. comp growth a little more than 6%, global comps nearing 6%, consolidated margin above 11%, and EPS of $2.55-$2.65, citing strengthening fundamentals.

“we are raising our guidance for fiscal year 2026”— Cathy Smith, Executive Vice President and Chief Financial Officer

Global comps grew 7.9% in Q3, improving sequentially from Q2 and marking the fourth consecutive quarter of positive global comps, led by transaction growth of more than 4%.

“Global comps grew 7.9%, improving sequentially from the second quarter and led by transaction growth of more than 4%.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Consolidated net revenues fell 1% year-over-year to $9.3 billion, largely because the China retail business transitioned to a new joint venture license structure, removing its revenue from consolidated results.

“Consolidated net revenues were $9.3 billion, down 1% from the prior year, largely driven by the transition of the China retail business to our new joint venture license structure in the third quarter.”— Cathy Smith, Executive Vice President and Chief Financial Officer

U.S. company-operated food attach reached a quarterly record with growth across all dayparts and the strongest gains in the afternoon, signaling stronger cross-sell versus prior periods.

“food attach reached a Q3 record across our U.S. company-operated business with growth across all dayparts and the strongest gains in the afternoon”— Cathy Smith, Executive Vice President and Chief Financial Officer

As delivery penetration scales, management says it has yet to see meaningful cannibalization of in-store visits and no margin trade-off, addressing a prior concern about channel substitution.

“there's no trade-off on margins. And we have yet to see any meaningful cannibalization from the delivery channel.”— Brian Niccol, Chairman and Chief Executive Officer

International posted its sixth consecutive quarter of positive system-wide comps, extending a sustained streak of global demand strength across a diversified 90-market portfolio.

“our international business posted its sixth consecutive quarter of positive system-wide comps”— Brian Niccol, Chairman and Chief Executive Officer

The mix of U.S. versus international new store growth is shifting: resources are being redirected toward the uplift program and NA company-operated unit growth may stay modest through fiscal 2027, while international becomes the key unit-growth driver.

“net new company-operated unit growth in North America may remain modest through fiscal 2027, while we expect international to be a meaningful contributor to unit growth”— Brian Niccol, Chairman and Chief Executive Officer

Following the China joint venture transition, about 90% of the international portfolio is now managed through a license structure, moving Starbucks toward a more capital-light global licensing model.

“With our China business now operating under the new joint venture, about 90% of our international portfolio is now managed through a license structure.”— Brian Niccol, Chairman and Chief Executive Officer

S'mores coffee beverages are tracking as the strongest summer coffee limited-time-offer launch in several years, resonating especially with Gen Z, exceeding prior LTO performance.

“S'mores beverages are resonating particularly well with Gen Z customers and are tracking as our strongest summer coffee LTO launch in the past several years.”— Brian Niccol, Chairman and Chief Executive Officer

Refreshers, a platform management says had become "complacent," were reinvigorated with new customization and flavors, driving double-digit year-over-year U.S. revenue growth, a reversal from prior stagnation.

“it's been a platform, frankly, that we kind of got a little complacent on in the past, and now we are reinvigorating. And we're seeing a really positive response.”— Brian Niccol, Chairman and Chief Executive Officer

The redesigned Starbucks Rewards program, launched four months ago, is exceeding expectations on engagement and stored-value card reload amounts, which continue to grow.

“Our new program is exceeding our expectations on multiple fronts, including engagement and average stored-value card reload amounts, which continue to grow.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Starbucks is testing a new sparkling refresher format ("Spritzers") in select markets and recently added blended refreshers, extending the platform beyond its traditional form for the first time.

“I'm really excited that we're getting ready to go test sparkling. We're calling it Spritzers.”— Brian Niccol, Chairman and Chief Executive Officer

Coffee costs remained a headwind but had a lower impact than in the first two quarters of fiscal 2026, and management expects price pressure to keep easing in Q4 until it becomes largely immaterial to margin comparisons.

“we expect coffee price pressures to continue easing in Q4 and become largely immaterial to the year-over-year margin comparisons”— Cathy Smith, Executive Vice President and Chief Financial Officer

Consolidated operating margin expanded about 430 basis points year-over-year to 14.4%, the second consecutive quarter of margin expansion, reversing the prior multi-year trend of margin compression.

“our third quarter consolidated operating margin was 14.4%, expanding approximately 430 basis points from the prior year, our second consecutive quarter of consolidated margin expansion”— Cathy Smith, Executive Vice President and Chief Financial Officer

North America operating margin grew year-over-year for the first time since Q1 fiscal 2024, a milestone driven by operational improvements across company-operated and licensed businesses.

“We also reached a milestone with North America operating margin growing year-over-year for the first time since Q1 fiscal 2024.”— Brian Niccol, Chairman and Chief Executive Officer

Both consolidated and North America operating margins expanded year-over-year even excluding tariff refunds, with NA margin up over 100 basis points ex-refunds, confirming underlying fundamentals improved beyond a one-time benefit.

“both consolidated and North America operating margins expanded year-over-year even without the impact of tariff refunds, underscoring the strengthening fundamentals of our operating model”— Cathy Smith, Executive Vice President and Chief Financial Officer

Full year fiscal 2026 consolidated operating margin guidance was raised to greater than 11%, reflecting confidence that Q3's margin drivers will persist into Q4.

“we are raising our full fiscal year 2026 consolidated margin guidance to greater than 11%”— Cathy Smith, Executive Vice President and Chief Financial Officer

Consolidated G&A decreased approximately 20% in the quarter, driven by cost savings efforts, deconsolidation of the China business, and lapping prior-year leadership experience expenses.

“Consolidated G&A decreased by approximately 20% in the quarter, driven by a combination of our cost savings efforts, deconsolidation of our China business and lapping expenses related to our leadership experience in fiscal 2025.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Competitive activity in refreshers and cold beverages is heating up as other QSRs advertise in the category, but Starbucks says continued strong execution is letting it capture more than its fair share as category leader.

“when other people start advertising in the space and you continue to execute really well, our plan is to get not only our fair share, but more than our fair share”— Brian Niccol, Chairman and Chief Executive Officer

Starbucks completed the transition of its China retail operations into a new joint venture, deconsolidating China and now reflecting 40% JV economics through equity income, with economics expected to build as the venture scales.

“Starbucks retail operations in China were deconsolidated from our financials and reported as a licensed business with our 40% joint venture economics reflected as part of income from equity investees.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Starbucks surpassed 1,000 coffeehouse uplifts, hitting its fiscal 2026 goal ahead of plan, and is accelerating the pace to complete at least 1,500 uplifts by year-end with further acceleration planned for fiscal 2027.

“we're accelerating our pace with the intention of completing at least 1,500 uplifts by fiscal year-end 2026 and accelerating further in fiscal 2027”— Brian Niccol, Chairman and Chief Executive Officer

Management is gaining deeper visibility into underperforming North America coffeehouses and now expects this could lead to some store closures, a new portfolio discipline signal despite overall strengthening performance.

“in North America, while overall performance has strengthened, we are gaining deeper visibility into some underperforming coffee houses, which could result in some closures”— Cathy Smith, Executive Vice President and Chief Financial Officer

Tariff refunds received in Q3 largely offset tariffs incurred over the first three fiscal quarters, and management believes it has now largely received the refunds it is entitled to, implying a diminishing future benefit.

“We believe we've largely gotten the refunds we're entitled to at this point.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Sales growth remained broad-based across generations, income groups and membership status despite continued pressure on U.S. consumer sentiment, indicating resilience against a still-challenging macro backdrop.

“Sales growth in Q3 was broad-based across generations and income groups and across both Starbucks Rewards members and nonmembers, even with the continued pressure on U.S. consumer sentiment.”— Brian Niccol, Chairman and Chief Executive Officer