European Investor
30 Jul 2026, 09:33
Starbucks Stock Rises 5.6% Premarket as Strong Comparable Sales and Higher Guidance Boost Confidence
Starbucks (NASDAQ: SBUX) shares gained 5.6% in premarket trading on Thursday after the coffee chain reported stronger-than-expected fiscal third-quarter results, highlighted by robust comparable sales growth, expanding margins and an increase to its full-year guidance.
Global comparable store sales rose 7.9% year-over-year, driven by a 4.2% increase in customer transactions and a 3.5% rise in average ticket. In North America, comparable sales climbed 8.1%, reflecting continued momentum in both store traffic and customer spending. Although consolidated net revenue declined 1% to $9.3 billion following the company's China joint venture transaction, GAAP earnings per share jumped 86% to $0.91, while non-GAAP EPS increased 70% to $0.85.
"Back to Starbucks" Strategy Gains Traction
Investors welcomed further evidence that CEO Brian Niccol's "Back to Starbucks" turnaround strategy is gaining momentum. Operating margins improved as stronger sales leverage, easing inflation and tariff refunds more than offset higher restructuring costs and labor investments. The company also opened 175 net new stores during the quarter, ending the period with more than 41,300 locations worldwide.
Starbucks completed the previously announced restructuring of its China business into a licensed joint venture during the quarter. While the transaction reduced reported consolidated revenue, it also contributed to improved profitability and a more asset-light operating model in one of the company's largest international markets.
Raised Outlook Supports Shares
Further boosting sentiment, Starbucks raised its fiscal 2026 guidance. The company now expects global comparable store sales growth to approach 6%, non-GAAP operating margin above 11%, and non-GAAP earnings per share between $2.55 and $2.65. Management also projects 600 to 650 net new stores globally this fiscal year.
What to Watch
The strong premarket rally suggests investors are gaining confidence that Starbucks' turnaround is translating into sustainable growth. Going forward, the market will closely monitor whether improving customer traffic, margin expansion and the company's "Back to Starbucks" strategy continue to support earnings growth through fiscal 2027.
Starbucks (NASDAQ: SBUX) shares gained 5.6% in premarket trading on Thursday after the coffee chain reported stronger-than-expected fiscal third-quarter results, highlighted by robust comparable sales growth, expanding margins and an increase to its full-year guidance.
Global comparable store sales rose 7.9% year-over-year, driven by a 4.2% increase in customer transactions and a 3.5% rise in average ticket. In North America, comparable sales climbed 8.1%, reflecting continued momentum in both store traffic and customer spending. Although consolidated net revenue declined 1% to $9.3 billion following the company's China joint venture transaction, GAAP earnings per share jumped 86% to $0.91, while non-GAAP EPS increased 70% to $0.85.
"Back to Starbucks" Strategy Gains Traction
Investors welcomed further evidence that CEO Brian Niccol's "Back to Starbucks" turnaround strategy is gaining momentum. Operating margins improved as stronger sales leverage, easing inflation and tariff refunds more than offset higher restructuring costs and labor investments. The company also opened 175 net new stores during the quarter, ending the period with more than 41,300 locations worldwide.
Starbucks completed the previously announced restructuring of its China business into a licensed joint venture during the quarter. While the transaction reduced reported consolidated revenue, it also contributed to improved profitability and a more asset-light operating model in one of the company's largest international markets.
Raised Outlook Supports Shares
Further boosting sentiment, Starbucks raised its fiscal 2026 guidance. The company now expects global comparable store sales growth to approach 6%, non-GAAP operating margin above 11%, and non-GAAP earnings per share between $2.55 and $2.65. Management also projects 600 to 650 net new stores globally this fiscal year.
What to Watch
The strong premarket rally suggests investors are gaining confidence that Starbucks' turnaround is translating into sustainable growth. Going forward, the market will closely monitor whether improving customer traffic, margin expansion and the company's "Back to Starbucks" strategy continue to support earnings growth through fiscal 2027.
