What the quarter showed
Starbucks reported its fiscal first quarter results, delivering net sales of $9.92 billion, up 6% year over year, and adjusted earnings per share of 56 cents, compared with analyst expectations of 59 cents per share on $9.67 billion in revenue, according to coverage of the release. Net income attributable to the company fell to $293.3 million, or 26 cents per share, from $780.8 million, or 69 cents per share, a year earlier, with management attributing the decline to higher coffee costs, tariffs and turnaround-related expenses.
Same-store sales and traffic turn positive
Global same-store sales rose 4%, beating the 2.3% estimate, and global traffic returned to growth at 3% for the first time in two years. In the United States, same-store sales also climbed 4%, aided by holiday products including the viral Bearista cup and the peppermint mocha, while international same-store sales rose 5%, led by China's 7% increase. Coverage of the results framed the figures as the second consecutive quarter of comparable sales growth.
FY26 outlook reinstated
Starbucks reinstated a financial outlook for the first time since October 2024, projecting fiscal 2026 adjusted EPS of $2.15 to $2.40 and at least 3% growth in both global and U.S. same-store sales. The EPS range sits below the Wall Street consensus of $2.35 cited in the coverage. Shares moved more than 8% higher in premarket trading following the report and guidance.
Store footprint and China joint venture
The company opened 128 net new locations in the quarter and outlined plans for 600 to 650 additional stores in fiscal 2026, a step up after closing roughly 400 U.S. stores the prior year. Starbucks also announced a joint venture with Boyu Capital to manage its China operations, expected to close in the second quarter of fiscal 2026. An investor day in New York was flagged as the venue for unveiling new long-term financial targets.
Other developments
Separately, a petition was launched in Galway to oppose a proposed Starbucks drive-thru at the Galway Shopping Centre on Headford Road, a development situated in the city centre.
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