Starbucks Reports Q2 Fiscal Year 2026 Results

CoffeeNetwork (New York) - Starbucks Corporation (Nasdaq: SBUX) today reported financial results for its 13-week fiscal second quarter ended March 29, 2026.

Q2 Fiscal Year 2026 Highlights

• Global comparable store sales increased 6.2%, primarily driven by a 3.8% increase in comparable transactions and a 2.3% increase in average ticket
• North America comparable store sales increased 7.1%, primarily driven by a 4.4% increase in comparable transactions and a 2.6% increase in average ticket; U.S. comparable store sales increased 7.1%, primarily driven by a 4.3% increase in comparable transactions and a 2.7% increase in average ticket
• International comparable store sales increased 2.6%, primarily driven by a 2.1% increase in comparable transactions and a 0.5% increase in average ticket; China comparable store sales increased 0.5%, primarily driven by a 2.1% increase in comparable transactions, partially offset by a 1.6% decline in average ticket
• The company opened 11 net new stores in Q2, ending the period with 41,129 stores: 52% company-operated and 48% licensed
• At the end of Q2, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 16,944 and 7,991 stores in the U.S. and China, respectively
• Consolidated net revenues increased 9% to $9.5 billion, or a 8% increase on a constant currency basis
• GAAP operating margin expanded 180 basis points year-over-year to 8.7%, primarily driven by sales leverage and lower store operating and depreciation and amortization costs after classifying assets for Starbucks retail operations in China as held for sale, partially offset by labor investments largely in support of “Back to Starbucks”
• Non-GAAP operating margin expanded 120 basis points year-over-year to 9.4%, or 110 basis points on a constant currency basis
• Effective tax rate of 29.8% compared to 23.5% in the prior year, with the increase primarily due to the impact of reorganizing certain entities in China, the $8 million discrete increase to the change in indefinite reinvestment assertions as a result of classifying our Starbucks retail operations in China as held for sale in the first quarter of 2026, and the effect of higher pre-tax earnings and the proportionate impacts from certain permanent differences and discrete items
• Non-GAAP effective tax rate increased 340 basis points to 27.1%
• GAAP earnings per share of $0.45 increased 32% over prior year
• Non-GAAP earnings per share of $0.50 expanded 22% over prior year, including on a constant currency basis

“Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” commented Brian Niccol, chairman and chief executive officer. “This is the Starbucks our customers deserve and the Starbucks we believe will deliver long-term growth and value for our partners and shareholders as we execute consistently, at-scale.”

“We’ve been clear that topline improvement would come first, with earnings growth to follow. We have more work to do, but we're pleased to see the combination of our comp growth and cost discipline starting to show up in margins,” commented Cathy Smith, chief financial officer.

Q2 North America Segment Results

Net revenues for the North America segment increased 7% over Q2 FY25 to $6.9 billion in Q2 FY26, primarily driven by an increase in company-operated store revenue due to a 7.1% increase in comparable store sales, driven by a 4.4% increase in comparable transactions and a 2.6% increase in average ticket.

Operating income decreased to $679.9 million in Q2 FY26 compared to $748.3 million in Q2 FY25. Operating margin of 9.9% contracted from 11.6% in the prior year, primarily driven by labor investments largely in support of “Back to Starbucks”, product mix shift, and inflation led by tariffs and elevated coffee pricing, partially offset by sales leverage.

Q2 International Segment Results

Net revenues for the International segment increased 10% over Q2 FY25 to $2.1 billion in Q2 FY26, primarily driven by an increase in our licensed store business revenue, favorable foreign currency translation impacts, an increase in company-operated store revenue due to a 2.6% increase in comparable store sales, driven by a 2.1% increase in comparable transactions and a 0.5% increase in average ticket, and net new company-operated store growth of 3% over the past 12 months.

Operating income increased to $398.6 million in Q2 FY26 compared to $217.0 million in Q2 FY25. Operating margin of 19.4% expanded from 11.6% in the prior year, primarily driven by lower store operating and depreciation and amortization costs after classifying assets for Starbucks retail operations in China as held for sale and ceasing the related depreciation and amortization, and sales leverage, partially offset by inflationary pressures, primarily driven by elevated coffee pricing.

Q2 Channel Development Segment Results

Net revenues for the Channel Development segment increased 39% over Q2 FY25 to $567.8 million in Q2 FY26, primarily due to an increase in revenue in the Global Coffee Alliance.

Operating income increased to $229.9 million in Q2 FY26 compared to $193.5 million in Q2 FY25. Operating margin of 40.5% contracted from 47.3% in the prior year, primarily driven by lower income from the North American Coffee Partnership joint venture relative to segment revenue growth and other product mix shifts.

Company Update

In January, the company hosted its Investor Day in New York City where Starbucks leaders, including ceo, Brian Niccol, cfo, Cathy Smith, and other executive leaders highlighted the company’s turnaround progress, unveiled new coffeehouse innovations, introduced a reimagined loyalty program, and reaffirmed its commitment to be the world’s leading customer service company.

In March, the company launched its reimagined loyalty program with three levels of membership – Green, Gold, Reserve – to deliver more meaningful value, personalization, and engagement in members. This evolution is a key milestone in the Back to Starbucks strategy and has reinvigorated what it means to be a Starbucks Rewards member.

In March, the company hosted its 34th Annual Meeting of Shareholders. Brian Niccol delivered opening remarks, highlighting continued progress in the company’s Back to Starbucks plan and commitments. Shareholders voted in favor of all director nominees, approved the company’s executive compensation on an advisory basis, and ratified the appointment of the company’s independent registered public accounting firm.

In April, the company announced a new incentive rewards program designed to create more opportunities for hourly coffeehouse partners to share in the success of the Back to Starbucks transformation. The program reflects the company's continued commitment to offering one of the most competitive total compensation and benefits packages in the industry.

In April, the company announced the closing of its previously announced joint venture with Boyu Capital to operate Starbucks retail in China, marking a significant milestone in the company's long-term strategy to unlock sustainable, disciplined growth in China. Under the terms of the agreement, funds managed by Boyu Capital now hold a 60% stake in Starbucks China retail operations, while Starbucks retains a 40% ownership interest and continues to own and license the brand and intellectual property to the joint venture. The impact of this transaction will begin to be reported in connection with our third quarter results.

In April, the company announced a plan to open an additional office in Nashville, Tennessee intended to establish a more strategic presence in the Southeast region of the U.S. In March, management approved a restructuring plan to relocate certain functions of our support organization to the additional office.

The Board declared a cash dividend of $0.62 per share, payable on May 29, 2026, to shareholders of record on May 15, 2026. The company had 64 consecutive quarters of dividend payouts with CAGR of 17% over that time period, demonstrating the company's commitment to consistent value creation for shareholders.

Fiscal Year 2026 Guidance

• The company updates its fiscal year 2026 guidance (all growth targets are relative to fiscal year 2025 non-GAAP measures unless specified):
• Global and U.S. comparable store sales growth of 5.0% or greater;
• Consolidated net revenues roughly flat year over year;
• Non-GAAP consolidated operating margin to slightly improve year over year;
• Non-GAAP earnings per share in the range of $2.25 to $2.45; and
• Approximately 600 to 650 net new coffeehouses globally across company-operated and licensed businesses.

Alexis Rubinstein