Starbucks Q1 Earnings Call Highlights

1 week ago 5

MarketBeat

Wed, January 28, 2026 astatine 9:09 AM CST 8 min read

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Starbucks delivered transaction-led Q1 results with global gross up 5% to $9.9 billion, comps +4% and 128 nett caller stores, though EPS fell 19% to $0.56 and operating borderline compressed to 10.1%.
Management attributes momentum to its "Back to Starbucks" turnaround—especially the Green Apron work standard, selling and store uplifts—and rising integer engagement (Starbucks Rewards reached 35.5 cardinal progressive members) that boosted some Rewards and non‑Rewards transactions.
Starbucks outlined a China associated task with Boyu Capital (Boyu to get up to 60%), which volition deconsolidate 8,011 stores connected close, and gave FY26 targets of ≥3% planetary comps, ~600–650 nett caller stores, EPS $2.15–$2.40, portion pursuing astir $2 cardinal of outgo savings and expecting borderline betterment successful the backmost half.
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Starbucks’ Turnaround Makes a Strong Case for Long-Term Hold

Starbucks (NASDAQ:SBUX) executives said the institution began fiscal 2026 with accelerating comparable income maturation and improving transaction trends, citing aboriginal momentum from its “Back to Starbucks” turnaround program and the rollout of its Green Apron work standard.

In prepared remarks, Chairman and CEO Brian Niccol said Starbucks delivered “top-line maturation driven by transactions” successful the archetypal fiscal 4th of 2026, adding that the institution believes it has wide plans to construe that momentum into borderline and net maturation implicit time.

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On a non-GAAP, constant-currency basis, Starbucks reported:

Global revenue: up 5% to $9.9 billion
Global comparable store sales: up 4%
Net caller stores: 128 globally
Operating margin: 10.1%
EPS: $0.56 (down 19% twelvemonth implicit year, per CFO Cathy Smith)

In North America, gross accrued 3% to $7.3 cardinal and comparable store income grew 4%. Niccol emphasized that U.S. company-operated transaction comps roseate twelvemonth implicit twelvemonth for the archetypal clip successful 8 quarters, and that transactions accrued crossed each dayparts.

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During the Q&A, Niccol said astir 0.5 percent point of the North America comp effect reflected a transportation of income from stores closed successful precocious September, but added that wide spot was “broad-based.” He besides noted the company’s 650 Green Apron aviator stores continued to outperform the broader fleet by astir 200 ground points successful comp, mostly driven by transactions.