Overview
Coffeehouse chain's fiscal Q3 revenue fell 1% but beat analyst expectations
Adjusted EPS for fiscal Q3 rose 70% to $0.85, beating analyst expectations
Global comparable store sales up 7.9%, led by transaction growth
Outlook
Starbucks raises fiscal 2026 guidance for U.S. comparable store sales growth to slightly above 6%
Company expects fiscal 2026 global comparable store sales growth nearing 6%
Starbucks projects fiscal 2026 non-GAAP EPS between $2.55 and $2.65
Result Drivers
TRANSACTION GROWTH - Global comparable store sales rose 7.9%, driven by a 4.2% increase in transactions and a 3.5% increase in average ticket
NORTH AMERICA SALES MIX - North America revenue rose 7%, helped by higher delivery sales and increased customer food attach and beverage modifications
CHINA JOINT VENTURE IMPACT - International revenue fell 34% due to conversion of Starbucks China retail operations to a licensed joint venture model
MARGIN EXPANSION - Operating margin expanded due to sales leverage, lower inflation, and tariff refunds, partially offset by higher restructuring costs and labor investments
Company press release: (Full Story)
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $9.30 bln | $9.16 bln (23 Analysts) |
Q3 Adjusted EPS | Beat | $0.85 | $0.66 (24 Analysts) |
Q3 EPS | $0.91 | ||
Q3 Adjusted Operating Margin | 14.40% | ||
Q3 Global Comparable Store Sales GROWTH | 7.90% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 17 "strong buy" or "buy", 18 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy."
Wall Street's median 12-month price target for Starbucks Corp is $110.00, about 6.7% above its July 28 closing price of $103.10
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 34 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)