Starbucks (SBUX) investor relations material

Executive summary

• Q2 2026 net revenues rose 9% year-over-year to $9.5 billion, with global comparable store sales up 6.2% and U.S. comps accelerating to 7.1%, driven by transaction growth and menu innovation.

• EPS increased 22% year-over-year to $0.50 (non-GAAP), with GAAP EPS up 32% to $0.45.

• China transaction with Boyu Capital closed, transitioning nearly 8,000 stores to a JV model and deconsolidating results; Starbucks retains a 40% stake.

• Store count reached 41,129 globally, with 11 net new stores opened in Q2 and a focus on disciplined growth.

• Operational improvements, menu innovation, and a revitalized loyalty program drove customer engagement and transaction growth.

Financial highlights

• Consolidated operating margin expanded to 9.4% (non-GAAP), up 120 bps year-over-year; GAAP margin rose 180 bps to 8.7%.

• North America revenue grew 6–7% to $6.9B; international revenue up 8–10% to $2.1B.

• Channel Development revenue grew 38–39% year-over-year, driven by alliances and new products.

• Effective tax rate increased to 29.8% (GAAP) and 27.1% (non-GAAP), mainly due to China JV-related taxes.

• Net earnings attributable to shareholders rose 33% to $510.9 million.

Outlook and guidance

• FY26 global and U.S. comparable store sales growth expected at 5% or greater; consolidated net revenues projected to be roughly flat year-over-year due to China JV transition.

• Non-GAAP EPS guidance raised to $2.25–$2.45; China JV expected to be EPS neutral for the year.

• Plan to add 600–650 net new stores in FY26, with international growth accelerating.

• Management expects lower revenues but higher operating margin from the China JV model starting Q3 2026.

• $150M in additional restructuring charges anticipated in FY26, mainly for lease exit costs.