Starbucks Q1 Revenues Rise 5.5% to $9.91B, EPS Falls 19%
Starbucks reported fiscal Q1 EPS of $0.56, missing estimates by $0.02 and declining 19% year-over-year, while net revenues rose 5.5% to $9.91 billion. Global comparable store sales grew 4%, and management forecast fiscal 2026 net revenue and same-store sales increases of at least 3% with modest margin expansion.
1. Strong Top-Line Growth and Earnings Miss
Starbucks posted Q1 net revenues of $9.91 billion, up 5.5% year-over-year, while EPS fell 19% to $0.56, missing consensus by $0.02. Shares rose 8% in pre-market trading following the announcement.
2. Store Metrics and Expansion
Global comparable store sales increased 4% year-over-year, driven by a 3% rise in transactions and a 1% increase in average ticket. The company added 128 net new locations, bringing total store count to 41,118, with 52% company-operated and 48% licensed.
3. Margin Pressure from Costs
Non-GAAP operating margin contracted 180 basis points to 10.1%, as North America margin fell 480 basis points to 11.9% due to higher labor and inflationary headwinds. International margin expanded 100 basis points to 13.7%, aided by asset reclassification benefits, while Channel Development revenues rose 20% to $522.7 million but saw margin decline.
4. Fiscal 2026 Outlook and Guidance
Management forecasts fiscal 2026 global and U.S. comparable store sales growth of at least 3%, net revenue growth at a similar pace, and non-GAAP EPS of $2.15 to $2.40. The company plans to open 600 to 650 net new stores and will pay a quarterly dividend of $0.62 per share.