NASDAQ:SBUX

Starbucks shares jump after strong Q2 results and raised outlook

Shares of Starbucks Corporation (SBUX) moved higher in after-hours trading [102.99, (+5.87%)] following the earnings release, as investors reacted positively to stronger-than-expected results and improved guidance.

The Starbucks Corporation reported fiscal Q2 2026 revenue of $9.5 billion, up 9% year over year, while global comparable store sales increased 6.2%, driven by both higher transactions and ticket size. Earnings also exceeded expectations, with non-GAAP EPS of $0.50 beating analyst forecasts of around $0.42–$0.44. (yahoo-finance)

The strong performance triggered a positive market reaction. According to Reuters, shares rose about 5% in extended trading as the company also raised its full-year outlook, expecting higher comparable sales growth and EPS.

Additional coverage from MarketWatch highlighted that the company’s turnaround strategy is gaining traction, with improved customer traffic, stronger engagement from younger consumers, and a revitalized product mix driving growth.

Similarly, Barron's noted that Starbucks delivered its first meaningful earnings growth in several quarters, reinforcing investor confidence and supporting the stock’s upward move.

Overall, the price increase reflects growing confidence in Starbucks’ “Back to Starbucks” turnaround strategy, as strong sales growth, earnings beats, and improved guidance signal a sustained recovery in both traffic and profitability.
Starbucks announced that its Board of Directors has approved a quarterly cash dividend of $0.62 per share of outstanding Common Stock. The dividend will be payable in cash on May 29, 2026, to shareholders of record on May 15, 2026.
Starbucks announced the completion of its joint venture with Boyu Capital, marking a key step in its long-term expansion strategy in China.

Under the agreement, funds managed by Boyu Capital hold a 60% stake in Starbucks’ China retail operations, while Starbucks retains 40% ownership and continues to control the brand and intellectual property. The joint venture will oversee approximately 8,000 stores, with plans to expand to up to 20,000 locations over time.

The partnership is designed to accelerate growth through greater local market expertise, enhanced customer experience, and a more efficient operating model. Starbucks emphasized that China remains one of its most important growth markets globally.

With the deal now finalized, both companies will focus on expanding store presence, strengthening localization, and driving long-term profitability in the Chinese market.
Business Wire
PepsiCo, Inc. and Starbucks Corporation are expanding their ready-to-drink portfolio with the launch of Starbucks® Coffee & Protein beverages, rolling out nationwide beginning March 23.

Developed through the North American Coffee Partnership, the new 12 oz bottled drinks combine Starbucks coffee with 22 grams of complete protein, 5 grams of prebiotic fiber, five vitamins and minerals, and 2 grams of sugar. The beverages will be available in Classic Caffè and Caffè Mocha flavors at a suggested retail price of $3.99, targeting growing consumer demand for protein-rich and functional beverages.

The launch is part of a broader expansion of lighter and reduced-sugar offerings, including Starbucks Doubleshot® Energy Zero Sugar and a new Frappuccino® Lite Chocolate Hazelnut Gelato flavor. The companies aim to capture demand for nutrient-focused, convenient coffee options in grocery, convenience and online retail channels.

Starbucks CEO Brian Niccol talks Starbucks turnaround after its Investor Day

Starbucks says its turnaround to better days is full steam ahead.

(finance.yahoo.com)
Starbucks announced a reimagined Starbucks Rewards loyalty program that will launch on March 10, introducing a new three-tier structure—Green, Gold and Reserve—to deliver greater value, personalization and engagement for members. The updated program is designed to strengthen customer connection and drive growth across Starbucks’ U.S. loyalty base of 35.5 million active members.

Under the new structure, members earn Stars faster as their engagement increases, unlocking enhanced benefits at each level. Green members receive personalized offers, birthday rewards and new perks such as Free Mod Mondays, while Gold members gain Stars that never expire, higher earning rates and additional Double Star Days. The new top-tier Reserve level targets the most loyal customers, offering premium experiences such as exclusive merchandise, curated events and travel experiences, alongside the highest Star-earning rates.

Starbucks is also introducing a new 60-Star redemption option that allows members to take $2 off any purchase, responding to demand for quicker access to rewards. Existing Stars will remain valid, and members’ initial tier placement will be based on Stars earned during 2025.

Source: Business Wire
Starbucks reported fiscal first-quarter 2026 results showing a clear acceleration in comparable sales, led by transaction growth, as the company begins to see traction from its “Back to Starbucks” strategy.

Global comparable store sales rose 4%, matching U.S. performance, with transaction growth of 3% marking the first increase in U.S. comparable transactions in eight quarters. International comparable sales increased 5%, with China standing out at 7% growth, driven primarily by higher customer traffic. Consolidated net revenues increased 6% year over year to $9.9 billion, or 5% on a constant-currency basis.

Profitability was pressured by higher labor investments, elevated coffee costs, tariffs, and tax-related impacts. GAAP operating margin declined to 9.0%, while non-GAAP operating margin fell to 10.1%. GAAP EPS declined to $0.26, down 62% year over year, while non-GAAP EPS was $0.56, down 19%.

During the quarter, Starbucks opened 128 net new stores, ending the period with 41,118 locations globally, with the U.S. and China accounting for 61% of the total store base. Management introduced full-year fiscal 2026 guidance and expressed confidence that improving traffic trends can be translated into sustainable earnings growth as the turnaround strategy progresses.
Starbucks Q4 & FY2025: Return to Global Growth Amid Restructuring Costs

Starbucks (Nasdaq: SBUX) reported fourth-quarter fiscal 2025 revenue of $9.6 billion, up 5% year-over-year, marking its first global comparable sales growth in seven quarters. Global comparable sales rose 1%, driven by a 1% increase in transactions, while U.S. sales were flat and China grew 2%. International comparable sales rose 3%. The company reported GAAP EPS of $0.12 and non-GAAP EPS of $0.52, down 85% and 35% respectively, due largely to restructuring and labor-related costs tied to its “Back to Starbucks” turnaround plan.

For the full year, revenue grew 3% to $37.2 billion. Global comparable sales declined 1%, and GAAP EPS dropped 51% to $1.63 (non-GAAP $2.13, down 36%). Operating margin contracted to 7.9% from 15.0% a year earlier as the company closed 627 stores—mostly in North America—amid simplification and cost optimization efforts. CEO Brian Niccol said the return to global comp growth shows the turnaround is taking hold, while CFO Cathy Smith emphasized focus on cost control and sustainable, long-term growth.
Starbucks Corporation (NASDAQ: SBUX) today announced that its Board of Directors has approved an increase in the company’s quarterly cash dividend from $0.61 to $0.62 per share of outstanding Common Stock. The increased dividend will be payable on November 28, 2025, to shareholders of record on November 14, 2025. This change reflects an annualized dividend rate of $2.48 per share.
Starbucks CEO Brian Niccol announced two major steps under the company’s “Back to Starbucks” plan: closing select North American coffeehouses that lack financial viability or suitable customer environments, and eliminating about 900 non-retail roles while closing many open positions.

Despite closures, Starbucks expects its total store count in the U.S. and Canada to decline only about 1% in fiscal 2025, ending the year with nearly 18,300 locations, and plans to resume growth in fiscal 2026. Over 1,000 stores will be redesigned with warmer, layered concepts. Impacted retail partners will be offered transfers where possible, with severance provided otherwise, while laid-off non-retail partners will receive severance and benefit extensions.

Niccol emphasized that these moves aim to redirect resources toward store-level investment, more partner hours, improved customer service, and refreshed designs—steps he said are already driving higher visits, sales, and customer satisfaction in early trials.
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