In the first quarter of fiscal 2026, Starbucks delivered consolidated revenue of $9.92 billion, surpassing consensus estimates of $9.62 billion, driven by a 5% increase in total sales. Global comparable store sales rose 4%, marking the second consecutive quarter of positive comps after 18 months of declines. However, operating income contracted and earnings per share fell 19% year-over-year to $0.56, missing Wall Street forecasts by $0.03. The divergence between revenue growth and margin compression underscores the impact of increased labor, supply-chain investments and higher fixed costs on profitability.

Starbucks plans to open approximately 650 new company-operated cafés this year, on top of its existing network of 16,000 U.S. locations, while shifting its China joint venture toward a licensed model to retain operational flexibility. The company expects new stores to contribute 2%–3% to consolidated revenue in 2026 and beyond, but management remains focused on driving productivity and customer traffic in mature markets. In Q1, U.S. comp sales growth trailed China’s 7% increase, highlighting the need to reinvigorate traffic stateside through remodels, streamlined service protocols and targeted menu innovation.

At recent investor engagements, CEO Brian Niccol emphasized the success of the “Back to Starbucks” turnaround, citing improvements in service throughput—reducing average order fulfillment to under four minutes—and renewed customer engagement across dayparts. Niccol highlighted pricing discipline as a tool to balance revenue growth against inflationary headwinds, while CFO Cathy Smith outlined guidance for fiscal 2026 of global and U.S. comparable sales growth of at least 3% and adjusted EPS of $2.15–$2.40. Management reiterated that early traction in menu innovation, digital loyalty engagement and café remodels will set the stage for sustainable growth.

At its 2026 Investor Day, Starbucks unveiled a financial framework through fiscal 2028 that targets ≥5% consolidated net revenue growth, ≥3% global and U.S. comps growth, and non-GAAP operating margins of 13.5%–15%. The company aims to open over 2,000 net new stores globally—including roughly 400 in the U.S.—and deliver non-GAAP EPS of $3.35–$4.00 by 2028. Analysts at Cowen & Co. maintained a Hold rating while raising their price target to $89, reflecting cautious optimism about store productivity and margin leverage as the turnaround progresses.