NEW YORK, August 2, 2026, 10:07 a.m. EDT
- Starbucks shares closed at $105.25 on Friday, rising 1.9% over the week.
- Worldwide comparable sales surpassed expectations by 2.2 percentage points, while adjusted earnings per share topped estimates by nearly 29%.
- North American margin increased by only 30 basis points even as comparable sales climbed 8.1%.
Starbucks Corporation NASDAQ:SBUX reported a traffic rebound that met investor expectations, although profit margins were slimmer. Shares rose 1.9% during earnings week after the company posted significant beats in both sales and earnings.
U.S. markets did not open on Sunday. Starbucks posted a 5% after-hours jump that diminished once regular trading began. Shares climbed 1.1% between the end of trading Wednesday and Friday, but declined 0.6% on Friday.
The overall market advanced as well. The S&P 500 increased by 1.0% over the week, with the Nasdaq Composite climbing 1.6%. As a result, Starbucks achieved only slightly above-market returns following its earnings outperformance.
The quarterly results came in robust.
| Metric | Fiscal Q3 actual | Consensus | Difference |
|---|---|---|---|
| Global comparable sales | 7.9% | 5.7% | up 2.2 points |
| Adjusted EPS | $0.85 | $0.66 | up $0.19, or 29% |
| Revenue | $9.32 billion | $9.18 billion | an increase of $0.14 billion |
The comparison is based on company results along with published consensus estimates.
Growth in sales came from quality rather than discounting. Worldwide transactions climbed 4.2%, with the average ticket up 3.5%. U.S. transactions advanced 4.2%, while the ticket grew 3.6%.
In North America, increased delivery sales provided a boost. Modifications to beverages and higher food attachment contributed to greater average spending per order. These improvements occurred as the company reported its fourth straight quarter of comparable-sales growth.
Chipotle Mexican Grill’s NYSE:CMG latest results underline how much more foot traffic Starbucks draws.
| Company and market | Quarter ended | Comparable sales | Transactions | Ticket or check |
|---|---|---|---|---|
| Starbucks, U.S. | June 28 | up 7.9% | increased 4.2% | gained 3.6% |
| Chipotle | June 30 | rose 2.2% | added 1.0% | up 1.2% |
The two companies refer to different groups of stores, although their reporting periods mostly coincide.
Starbucks led Chipotle by 5.7 percentage points in comparable sales and held a 3.2-point lead in transactions. Consumer Edge analyst Michael Gunther reported that Starbucks had started to stabilize its market share, notably with younger consumers.
The profit bridge proved more complex. North American revenue reached $7.4 billion, a 7% increase. However, the operating margin rose by just 30 basis points. Gains from higher sales were partly offset by labor costs and product mix.
Elsewhere in the company, margins increased significantly more.
| Margin measure | Fiscal Q3 margin | Year-on-year change | Main reported factors |
|---|---|---|---|
| Consolidated, GAAP | 10.5% | +60 basis points | Higher sales, easing inflation and tariff repayments |
| Consolidated, non-GAAP | 14.4% | +430 basis points | Reduced expenses and restructuring exclusions |
| North America segment | 13.6% | +30 basis points | Sales increases countered by workforce costs and product mix |
| International segment | 19.1% | +550 basis points | China joint-venture switch |
| Channel Development | 52.1% | +700 basis points | Tariff repayments and stronger revenues |
Filings from the company indicate significant variation in margin sources between segments.
The reported business mix was altered by the transaction in China. International revenue dropped 34% following the transfer of retail operations to a licensed joint venture, in which Starbucks now holds a 40% stake. While this arrangement boosted the international margin, it led to a decrease in company-operated revenue.
Tariff refunds provided support as well. Starbucks reported that refunds in the third quarter mostly counterbalanced associated expenses from the earlier three fiscal quarters. The refunds boosted margins in both North America and Channel Development. Investors should distinguish these advantages from ongoing operational cost reductions.
The company nevertheless increased its full-year guidance.
| Fiscal 2026 measure | April guidance | July guidance |
|---|---|---|
| Global comparable sales | Minimum of 5% | Close to 6% |
| U.S. comparable sales | No less than 5% | Just over 6% |
| Fourth-quarter U.S. comps | Not indicated | 6.5% or greater |
| Revenue growth | Approximately unchanged | Flat or slightly higher |
| Non-GAAP operating margin | Modest yearly rise | Exceeds 11% |
| Adjusted EPS | $2.25-$2.45 | $2.55-$2.65 |
| Net new coffeehouses | 600-650 | 600-650 |
The midpoint for adjusted EPS was raised to $2.60, up from the previous $2.35.
Starbucks shares are priced at $105.25, equating to roughly 40.5 times the recently raised midpoint estimate. On Friday, its trailing price-to-earnings ratio stood at 60.8. The current valuation offers scant tolerance for lackluster margin performance.
Starbucks continues to cost more compared to a number of established restaurant chains.
| Company | Friday close | Friday move | Trailing P/E |
|---|---|---|---|
| Starbucks Corporation NASDAQ:SBUX | $105.25 | down 0.6% | 60.8 |
| McDonald’s Corporation NYSE:MCD | $270.64 | up 0.8% | 22.3 |
| Chipotle Mexican Grill NYSE:CMG | $37.22 | fell 3.3% | 33.2 |
| Dutch Bros Inc. NYSE:BROS | $65.83 | rose 0.6% | 102.9 |
Friday’s prices and valuation metrics reflect the most recent market data available.
Chief Executive Brian Niccol said, “We have more work to do.” Analysts from William Blair described the margin rebound as still in its early stages and noted Starbucks had only begun to “play offense” following an 18-month reset. Starbucks Investor Relations
Investors will get two key reads on demand in the coming week. Dutch Bros is set to announce results after markets close on Wednesday, with its earnings call scheduled for 5 p.m. EDT. Restaurant Brands International NYSE:QSR, the parent company of Tim Hortons, reports on Thursday and will host its conference call at 8:30 a.m. EDT.
Risks: Higher spending on workforce and stores may limit margins in North America. Tariff repayments provided support in the most recent quarter. Revenue comparisons are complicated by new licensing rules in China. Softer consumer demand could dampen transaction expansion.
Starbucks forecasts U.S. comparable sales to grow at least 6.5% in the fourth quarter. The company projects a full-year non-GAAP margin exceeding 11%. Up next: converting steady foot traffic into higher North American margins.
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