Starbucks announced its Q1 results today, with the company’s CEO and CFO attributing the first sales growth in two years to the ‘Back to Starbucks’ turnaround strategy.
The company’s Q1 Highlights include:
- North America and U.S. comparable store sales increased 4%, driven by a 3% increase in comparable transactions and a 1% increase in average ticket.
- Net revenues for the North America segment increased 3% over Q1 FY25 to $7.3 billion in Q1 FY26.
- Global comparable store sales increased 4%, driven by a 3% increase in comparable transactions and a 1% increase in average ticket.
- International comparable store sales increased 5%, driven by a 3% increase in comparable transactions and a 2% increase in average ticket.
- The company opened 128 net new stores in Q1, ending the period with 41,118 stores: 52% company-operated and 48% licensed.
According to Starbucks, its operating margin of 11.9% contracted from 16.7% in the prior year, “primarily driven by labor investments in support of “Back to Starbucks” and inflationary pressures, primarily driven by tariffs and elevated coffee pricing.”
In fiscal 2026, Starbucks aims to open 600 to 650 new company-owned and licensed cafes. This plan follows the closure of about 400 U.S. locations last year.
Starbucks CEO, Brian Niccol, told investors, “Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule. It’s great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”
“With our ‘Back to Starbucks’ initiatives gaining traction, we have clear line of sight to translating topline strength into sustainable earnings growth that positions us for long-term profitable growth,” commented Cathy Smith, CFO.
The strong sales growth is welcome news for the company, which has recently struggled with staff discontent and strikes.
Starbucks’ stock fell around 1.5% following the announcement.
By CEO NA Editorial Staff
