Starbucks Stock Earnings Reports

Key investor takeaways from Starbucks Q1 FY2026 call: Revenue and comps momentum — Consolidated revenue $9.9B (+5% YoY) with global comparable store sales +4%. North America revenue $7.3B (+3%) with U.S. comps +4% (transactions +3). International revenue $2.1B (+10%); China comps +7%. Rewards engagement reached a record 35.5M 90-day active members. Store growth — 128 net new coffee houses in Q1; company plans 600–650 net new stores in FY2026 (150–175 U.S. company-operated; ~450–500 international, ~half in China). Profitability and guidance — Q1 operating margin 10.1%; EPS $0.56 (down 19% YoY). North America margin compression ~420 bps Y/Y driven by Back to Starbucks investments and product/distribution inflation. FY2026 outlook: global comps expected 3%+; consolidated net revenue growth roughly in line with comps; operating margins expected to improve slightly (back-half weighted); EPS guidance $2.15–$2.40. China JV and accounting effects — Agreement with Boyu (Boyu to acquire up to 60% of Starbucks China retail ops; Starbucks to retain 40%). Starbucks China assets classified held for sale; deconsolidation and equity-method accounting expected upon close (spring, subject to approvals). Cost and efficiency programs — Management is pursuing ~ $2B of identified cost opportunities over the next couple of years while continuing targeted investments (e.g., Green Apron service, supply chain, technology). Technology hire — Anand Rerudharajan named CTO from Amazon. Operational initiatives — Green Apron service pilots (650 stores) outperforming fleet (~200 bps lift), SmartQ and AI tools (Green Dot Assist) scaled, menu/platform focus (protein, health & wellness, afternoon daypart, bakery), café uplifts (~200 completed; >1,000 targeted by end of 2026). Margin outlook notes — expect inflationary pressures (coffee, tariffs) to peak around Q2 and ease into H2; G&A expected to run below 2023 levels on restructuring and efficiencies. Management view — turnaround is progressing: top-line growth driven by transactions first, with earnings to follow as investments anniversary and cost programs take effect.