SBUX · Starbucks Corporation

Starbucks reported strong Q2 FY2026 results, marking a turnaround under its 'Back to Starbucks' plan. Global comparable store sales rose 6.2%, driven by a 3.8% increase in transactions and a 2.3% increase in average ticket. North America comps increased 7.1% (U.S. 7.1%), while International comps grew 2.6% (China 0.5%). Consolidated net revenues increased 9% to $9.5 billion, with North America up 7% to $6.9 billion and International up 10% to $2.1 billion. GAAP operating margin expanded 180 basis points to 8.7%, benefiting from sales leverage and lower store operating costs after classifying China retail assets as held for sale, partially offset by labor investments. Non-GAAP operating margin expanded 120 basis points to 9.4%. GAAP EPS of $0.45 increased 32% year-over-year, and Non-GAAP EPS of $0.50 increased 22%. Management highlighted the turn in the turnaround, with CEO Brian Niccol stating the quarter marked progress in both top and bottom line growth. CFO Cathy Smith noted that comp growth and cost discipline are starting to show in margins. The company raised its fiscal year 2026 guidance, now expecting global and U.S. comparable store sales growth of 5.0% or greater, consolidated net revenues roughly flat year over year, non-GAAP operating margin to slightly improve, and non-GAAP EPS in the range of $2.25 to $2.45. Additionally, Starbucks announced the closing of its joint venture with Boyu Capital for China retail operations, with Boyu holding a 60% stake and Starbucks retaining 40% ownership. The company also declared a quarterly dividend of $0.62 per share.