European Investor
28 Jan 2026, 16:59
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.
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.