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Starbucks Turnaround Brews Hot Financials
29 Apr
Summary
- Starbucks' Q2 revenue jumped 9% to $9.5 billion.
- Comparable-store sales increased by 6.2%, driven by more transactions.
- Full-year outlook raised with U.S. and global comps expected at 5% or greater.
Starbucks' "Back to Starbucks" turnaround plan is yielding positive results, as evidenced by the company's fiscal 2026 second-quarter earnings. Net revenue surged 9% year over year to $9.5 billion, surpassing analyst expectations. Comparable-store sales saw a healthy increase of 6.2%, with a 3.8% rise in transactions and a 2.3% increase in average ticket size.
North American comparable-store sales grew by 7.1%, and international markets also showed improvement, with all 10 largest international markets delivering positive comps for the first time in nine quarters. CEO Brian Niccol stated that the second quarter marked a turning point in their turnaround efforts. The company also opened 11 net new stores, bringing its global total to over 41,000.
Looking ahead, Starbucks has boosted its full-year 2026 outlook, now forecasting U.S. and global comparable-store sales of 5% or greater, a notable increase from the previous quarter's projection of 3%. The company also declared a quarterly dividend of $0.62 per share. Despite these positive strides, management acknowledges that "more work to do" remains in enhancing profitability.
