Starbucks (SBUX) reported a significant turnaround in its Q2 performance, with consolidated revenue reaching $9.5 billion, a 9% year-over-year increase, marking the first growth in both revenue and earnings per share (EPS) in over two years. The company saw global comparable sales rise by 6.2%, driven by strong transaction growth in North America, where U.S. comparable store sales surged 7.1%. Internationally, all top 10 markets, including China, posted positive comps for the first time in nine quarters, contributing to a notable EPS of $0.50, up 22%.
This resurgence is critical for Starbucks as it signals a recovery in consumer spending and operational efficiency, particularly in its U.S. and international markets. The company has raised its fiscal 2026 guidance for global comparable sales growth to at least 5% and increased its EPS forecast to between $2.25 and $2.45. The expansion of the Starbucks Rewards program and menu innovations are also expected to drive customer engagement and sales.
Investors should note that Starbucks is transitioning its China operations to a joint venture model, which will alter revenue reporting but is expected to have a neutral effect on EPS this fiscal year. The company plans to open 600-650 new stores globally, with a focus on enhancing customer experience and operational efficiency, further solidifying its market position.
Source: fool.com