Starbucks Corporation SBUX reported solid second-quarter fiscal 2026 results, with both earnings and revenues surpassing expectations. More importantly, the quarter marked a notable inflection point, as the company delivered year-over-year growth in both top and bottom lines for the first time in over two years. The performance was largely driven by a sharp rebound in customer traffic, signaling early success of its ongoing turnaround strategy.
SBUX Q2 Comps
In the second quarter of fiscal 2026, Starbucks reported global comparable store sales growth of 6.2%, a meaningful improvement from prior quarters. The standout driver behind this performance was a resurgence in transactions, particularly in the United States, where comparable sales grew 7.1%, supported by transaction growth 4.4%.
This traffic recovery reflects strengthening customer engagement across dayparts. Morning visits rebounded to levels seen a few years ago, while afternoon demand also improved, aided by beverage innovation and broader menu appeal. Management highlighted that transaction growth was broad-based, spanning income groups and age cohorts, indicating that Starbucks is regaining relevance with a wide customer base.
Alongside traffic gains, average ticket also contributed to comp growth, rising modestly due to a favorable mix. Growth in delivery, continued popularity of beverage customizations such as cold foam and higher food attachment rates supported per-visit spending. This balanced contribution from both transactions and ticket underscores a healthier sales mix compared with prior periods that leaned more heavily on pricing.
Internationally, comparable sales growth was more moderate but remained positive, supported primarily by transaction gains. Notably, all major international markets delivered positive comps for the first time in several quarters, reflecting improving global demand trends. (Read more: Starbucks Stock Gains as Q2 Earnings Beat Estimates, Revenues Rise Y/Y)
Starbucks Corporation Price, Consensus and EPS Surprise
Starbucks Corporation price-consensus-eps-surprise-chart | Starbucks Corporation Quote
What’s Driving the Traffic Recovery?
Starbucks’ improving traffic trends are closely tied to operational and strategic changes under its “Back to Starbucks” plan. The rollout of its Green Apron Service model has enhanced speed, service quality and consistency across stores, leading to better customer experiences and higher satisfaction scores.
Menu innovation has also played a critical role. New beverage platforms, including refreshers and customizable energy options, have helped drive incremental visits, particularly in the afternoon daypart. At the same time, the revamped Starbucks Rewards program is boosting frequency, with early signs showing increased visit cadence and stronger member engagement.
Additionally, investments in store-level execution, including staffing, scheduling and technology improvements, are enabling higher throughput without compromising service standards. These operational gains are translating directly into higher transactions and improved comps.
SBUX Lifts 2026 Outlook, Updates China Structure
Starbucks updated its fiscal 2026 outlook following the quarter’s results, reflecting improved comparable-sales momentum compared with the earlier expectations. The company now calls for global and U.S. comparable store sales growth of 5% or greater, up from its prior view of at least 3%.
SBUX continues to anticipate year-over-year non-GAAP operating margin improvement while maintaining its plan to open roughly 600-650 net new coffeehouses globally.
The earnings framework also moved higher. Starbucks lifted its non-GAAP earnings per share outlook to $2.25-$2.45 from the prior $2.15-$2.40 range.
The company highlighted the closing of its previously announced joint venture with Boyu Capital to operate Starbucks retail in China, with the impact expected to begin to be reflected in third-quarter results.
SBUX’s Zacks Rank & Key Picks
Starbucks currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
Five Below, Inc. FIVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
FIVE has a trailing four-quarter earnings surprise of 63.4%, on average. The Zacks Consensus Estimate for FIVE’s 2027 sales and EPS indicates growth of 11.3% and 20.2%, respectively, from the year-ago period’s levels.
Victoria's Secret & Co. VSCO currently sports a Zacks Rank of 1. VSCO has a trailing four-quarter earnings surprise of 55.1%, on average.
The Zacks Consensus Estimate for VSCO’s 2027 sales and EPS indicates growth of 6.2% and 15.7%, respectively, from the year-ago period’s levels.
Dutch Bros Inc. BROS carries a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 41.6%, on average.
The Zacks Consensus Estimate for Dutch Bros’ 2026 sales and EPS indicates growth of 24.6% and 19.7%, respectively, from the prior-year levels.
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Starbucks Corporation (SBUX): Free Stock Analysis Report
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