SBUX 2026 Q2

Starbucks delivered growth on both the top and bottom line for the first time in more than two years, with revenue up 9% to $9.5B and comps up 6%, marking what management calls the turn in the turnaround.

“We delivered growth on both the top and bottom line for the first time in more than two years.”— Brian Niccol, Chairman and Chief Executive Officer

Management raised fiscal 2026 global comp guidance to 5% or better (led by 5%+ in the U.S.) and raised EPS guidance to $2.25-$2.45, both increases from prior guidance given continued positive momentum through April.

“We are raising our fiscal 2026 global comp guidance to 5% growth or better.”— Brian Niccol, Chairman and Chief Executive Officer

North America and U.S. comps accelerated to over 7%, with transaction growth over four points described as strength not seen in three years, driven by broad-based gains across dayparts and demographics.

“We haven't seen this transaction strength in three years.”— Brian Niccol, Chairman and Chief Executive Officer

All 10 of Starbucks' top international markets, including China, posted positive comps simultaneously for the first time in nine quarters, signaling a broad-based international recovery.

“Our top 10 international markets, including China, all posted positive comps for the first time in nine quarters.”— Brian Niccol, Chairman and Chief Executive Officer

U.S. licensed stores returned to positive system-wide comps for the first time since Q1 fiscal 2024, led by record airport volumes and recovery in retail/grocery channels.

“U.S. licensed stores returned to positive system-wide comps for the first time since Q1 fiscal 2024.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Full-year fiscal 2026 consolidated net revenue outlook shifted to roughly flat year-over-year, down from prior consolidated expectations, because China revenue will now be reported under a licensing/JV structure at less than 20% of prior levels following the Boyu transaction close.

Per Cathy Smith, Executive Vice President and Chief Financial Officer

U.S. delivery revenue grew more than 30% year-to-date after expanding access across company-operated stores last fiscal year, now proving to be a largely incremental revenue stream rather than cannibalizing other channels.

“It's proven to be a largely incremental revenue stream, growing more than 30% year-to-date.”— Brian Niccol, Chairman and Chief Executive Officer

International transactions grew over 2%, leading a rebound in international comps of nearly 3%, versus prior periods of weaker international transaction trends.

Per Brian Niccol, Chairman and Chief Executive Officer

Following the Boyu transaction close, Starbucks China plans to expand its footprint from over 1,000 county-level cities today to more than 1,500 within three years, signaling a shift back into aggressive unit growth after a period of portfolio rebasing.

Per Brian Niccol, Chairman and Chief Executive Officer

Starbucks is restructuring its International segment toward a nearly 90% license model, simplifying its operating structure to put decisions closer to local markets and licensee partners.

Per Brian Niccol, Chairman and Chief Executive Officer

Japan posted a record sales week over New Year's driven by tourism and menu additions, and South Korea's new Aerocano launch drove more than one million cups sold in its first week, both cited as standout market performances.

“Our Aerocano launch in February drove incredible demand with more than one million cups sold in its first week.”— Brian Niccol, Chairman and Chief Executive Officer

New energy refreshers and mango flavor launched in April have exceeded expectations, strengthening the existing $2 billion refresher platform and creating new later-day visit occasions.

“Both have exceeded our expectations and strengthened a proven $2 billion platform.”— Brian Niccol, Chairman and Chief Executive Officer

Cold Foam, the leading modifier, grew platform sales more than 40% in Q2 across U.S. company-operated stores, accelerating with new flavors and a protein addition especially appealing to Gen Z.

“Cold Foam...platform sales up more than 40% in Q2 across our U.S. company-operated business.”— Cathy Smith, Executive Vice President and Chief Financial Officer

The new multi-serve refreshers concentrate CPG launch is shaping up to be Starbucks' largest CPG launch in over a decade, with strong reception and repeat purchase behavior.

“Shaping up to be our largest CPG launch in over a decade.”— Cathy Smith, Executive Vice President and Chief Financial Officer

The redesigned Starbucks Rewards program drove 90-day active membership to a record 35.6 million with sequential Q1-to-Q2 growth, reversing the typical prior-year seasonal decline in this quarter, while the new 60-star redemption became the most-used reward at about one-third of redemptions.

“We saw steady member growth from Q1 to Q2, which is a positive shift from prior year seasonal sequential declines.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Since the rewards relaunch, both the rate and volume of U.S. card loads have grown steadily, exceeding expectations, alongside early growth in customers visiting four or more times a week.

“The rate and volume of U.S. card loads have grown steadily, exceeding our expectations.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Product and distribution costs rose roughly 190 basis points as a percent of revenue in North America, driven half by innovation-led product mix and half by tariff and coffee price inflation, which management expects to moderate in the back half of fiscal 2026.

“We expect these tariff and coffee pressures to moderate in the back half of fiscal 2026.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Consolidated operating margin improved 110 basis points to 9.4%, the first quarter of consolidated margin expansion since Q1 fiscal 2024, reversing a multi-year margin contraction trend.

“This was our first quarter of consolidated margin expansion since Q1 fiscal 2024.”— Cathy Smith, Executive Vice President and Chief Financial Officer

International operating margin grew about 790 basis points to 20.3%, though management noted roughly half of the expansion was driven by temporary held-for-sale accounting related to the China transaction that concluded at the start of Q3.

“Approximately half of our international margin expansion was driven by held-for-sale accounting related to Starbucks China.”— Cathy Smith, Executive Vice President and Chief Financial Officer

North America operating margin contracted approximately 170 basis points to 10.2%, as operating leverage and cost discipline only partially offset annualizing Green Apron Service investments and higher product/distribution costs and legal accruals.

Per Cathy Smith, Executive Vice President and Chief Financial Officer

Starbucks plans to spend $1 billion renovating up to 9,000 North American stores into cozier spaces to boost profitability. Starbucks’ $1 Billion Bet on Cozy Stores Faces a Margin Test — finance.yahoo.com · 13 September 2026

Management now expects slight year-over-year consolidated operating margin growth for fiscal 2026, driven by building sales leverage, easing coffee/tariff pressures, and an accretive China JV structure, versus the pressured margins seen in the first half.

“We continue to expect slight year-over-year growth in our fiscal 2026 consolidated operating margins.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Consolidated G&A decreased 5.5% in the quarter as organizational streamlining efforts began actualizing, and management expects G&A dollars to remain below fiscal 2023 levels even with higher performance-based compensation.

“Consolidated G&A in the quarter decreased 5.5% as our organizational streamlining efforts continue to actualize.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Management said the number of initiatives within the $2 billion multiyear cost savings program has grown since the last update, reinforcing confidence the program remains on track through fiscal 2028.

“The number of initiatives have grown since we last spoke.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Management noted traditional QSR and specialty coffee competitors are entering and expanding in the beverage/refresher category, but framed this as validating Starbucks' innovation leadership, expecting the market leader to benefit as the category grows.

“When the category starts being talked about, the market leader benefits. And that's going to be us in this scenario.”— Brian Niccol, Chairman and Chief Executive Officer

The previously announced Boyu Capital transaction for Starbucks China closed after quarter end, valued at more than $13 billion, generating about $3.1 billion in gross cash proceeds to be used for debt reduction and balance sheet management.

“The overall value to Starbucks is anticipated to be more than $13 billion.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Management expects International unit growth to accelerate over the next two quarters to reach 450-500 net new coffeehouses in fiscal 2026, as the company moves from a rebased portfolio back into an intentional growth ramp.

“We expect International to accelerate its growth over the next two quarters to achieve 450 to 500 net new coffeehouses in fiscal 2026.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Management struck a more cautious forward tone, noting heightened macro uncertainty (gas prices, tariffs, fuel) even though consumer behavior at Starbucks has not yet shown negative effects, and built this caution into guidance.

“The current macro environment brings heightened uncertainty to our operating landscape and consumer behavior more broadly.”— Cathy Smith, Executive Vice President and Chief Financial Officer

Coffee price elevation (~$1/lb year-over-year) and tariff-related inventory cost increases pressured the first half of fiscal 2026, but management expects both to abate in the back half of the year.

“We expect both of those effects to abate toward the back half of the year.”— Cathy Smith, Executive Vice President and Chief Financial Officer