Starbucks 8-K
PositiveEarningsGuidance raised
Transaction-led sales growth accompanies raised comp-sales and non-GAAP EPS guidance; Boyu Capital China JV enters licensed reporting in Q3.
Filed 2026-04-28 16:06 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 FY2026 results with raised FY2026 comparable-sales and non-GAAP EPS guidance. Revenue grew 8.8% and global comparable sales rose 6.2%, led by transaction growth; GAAP and non-GAAP EPS also increased. Starbucks closed its China retail joint venture with Boyu Capital in April; results will reflect the licensed-joint-venture structure starting in Q3.
Key Figures
| Metric | Q2 FY2026 | Q2 FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $9.53B | $8.76B | 8.8% |
| Operating income | $828M | $601M | 37.8% |
| Net earnings attributable to Starbucks | $511M | $384M | 33.0% |
| Diluted EPS, GAAP | $0.45 | $0.34 | 32.4% |
| Diluted EPS, non-GAAP | $0.50 | $0.41 | 22.0% |
| Global comparable store sales | 6.2% | — | — |
- Comparable sales growth was driven by 3.8% higher transactions and a 2.3% increase in average ticket. GAAP operating margin expanded 180 bp to 8.7%; non-GAAP margin expanded 120 bp to 9.4%, primarily on sales leverage and lower store operating and depreciation costs after China retail assets were classified as held for sale, partly offset by labor investments.
- YTD net earnings including noncontrolling interests were $804M vs $1.17B; operating cash flow was $1.96B vs $2.36B. Free cash flow, calculated as operating cash flow less capital expenditures, was $1.37B vs $1.08B.
- Boyu Capital holds 60% of the China retail joint venture and Starbucks retains 40%, with Starbucks continuing to own and license its brand and intellectual property. The board declared a $0.62/share dividend, payable 5/29/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Global and U.S. comparable store sales growth | FY2026 | At least 5.0% | — | Raised |
| Consolidated net revenues | FY2026 | ≈flat Y/Y | — | — |
| Consolidated operating margin, non-GAAP | FY2026 | Slightly improve Y/Y | — | — |
| Diluted EPS, GAAP | FY2026 | $1.73-$1.93 | — | — |
| Diluted EPS, non-GAAP | FY2026 | $2.25-$2.45 | — | Raised |
| Net new coffeehouses, global | FY2026 | ≈600-650 | — | — |
FY2026 guidance reflects China retail as a joint-venture licensee in H2, versus company-operated in H1. The projected GAAP EPS range excludes the anticipated material gain and related tax impacts from the China transaction. Starbucks said it would provide additional business-outlook information on its scheduled earnings call.
Investor Takeaways
- Watch Q3 results for the first reported impact of China retail under the joint-venture licensee structure.
- Track FY2026 comparable sales and non-GAAP EPS against the raised guidance; additional outlook detail was expected on the earnings call.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3