SBUX 8-K: Smart Summary

Starbucks reported Q1 fiscal year 2026 results for the 13-week quarter ended December 28, 2025, with consolidated net revenues up 6% to $9.9B and global comparable store sales accelerating 4%. GAAP EPS declined 62% to $0.26, primarily due to a discrete income tax impact from classifying China retail operations as held for sale, while Non-GAAP EPS declined 19% to $0.56. The company also introduced fiscal year 2026 guidance and announced a joint venture agreement with Boyu Capital for Starbucks China retail operations.

• Total net revenues: $9,915.1M vs. $9,397.8M prior year, +5.5% YoY (+5.4% constant currency)
• Company-operated store revenues: $8,188.0M vs. $7,785.3M, +5.2% YoY
• GAAP operating income: $890.8M vs. $1,121.7M, -20.6% YoY; GAAP operating margin contracted 290 bps to 9.0%
• Non-GAAP operating income: $998.8M vs. $1,121.7M, -11.0% YoY (-10.8% constant currency); Non-GAAP operating margin contracted 180 bps to 10.1%
• GAAP net earnings attributable to Starbucks: $293.3M vs. $780.8M, -62.4% YoY
• GAAP diluted EPS: $0.26 vs. $0.69, -62.3% YoY; Non-GAAP diluted EPS: $0.56 vs. $0.69, -18.8% YoY
• GAAP effective tax rate: 61.7% vs. 23.6% prior year; Non-GAAP effective tax rate: 26.8% vs. 23.6%, +320 bps
• Net cash provided by operating activities: $1,597.7M vs. $2,072.0M prior year

• North America: net revenues $7,280.5M vs. $7,071.9M, +3% YoY; comparable store sales +4% (transactions +3%, ticket +1%); operating income $867.0M vs. $1,181.3M, -27%; operating margin contracted 480 bps to 11.9%; 18,360 stores
• International: net revenues $2,064.9M vs. $1,871.3M, +10% YoY; comparable store sales +5% (transactions +3%, ticket +2%); operating income $282.7M vs. $237.1M, +19%; operating margin expanded 100 bps to 13.7%; 22,758 stores
• China (within International): net revenues $823.4M vs. $743.6M, +11% YoY; comparable store sales +7% (transactions +5%, ticket +2%); 8,011 stores
• Channel Development: net revenues $522.7M vs. $436.3M, +20% YoY; operating income $215.8M vs. $208.0M, +4%; operating margin contracted 640 bps to 41.3%
• Corporate and Other: net revenues $47.0M vs. $18.3M, +156.8% YoY; operating loss $(474.7)M vs. $(504.7)M, improved 5.9%
• Total company net new stores: 128 in Q1, ending period with 41,118 stores (52% company-operated, 48% licensed)

• Cash and cash equivalents: $3,413.4M as of Dec 28, 2025, up from $3,219.8M at Sep 28, 2025
• Cash dividends declared per share: $0.62 vs. $0.61 in prior year quarter; payable February 27, 2026 to shareholders of record February 13, 2026
• Cash dividends paid during Q1 FY26: $705.1M vs. $691.9M prior year
• 63 consecutive quarters of dividend payouts with CAGR of 18% over that time period
• Long-term debt: $14,580.9M; current portion of long-term debt: $1,499.5M
• Short-term investments: $184.9M; long-term investments: $288.3M
• Additions to property, plant and equipment: $323.7M vs. $692.9M in prior year quarter

• "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." — Brian Niccol, chairman and chief executive officer
• "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." — Cathy Smith, chief financial officer

• Global and U.S. comparable store sales growth of 3% or greater, with consolidated net revenues growing at a similar rate
• Non-GAAP consolidated operating margin to slightly improve year over year
• Non-GAAP EPS in the range of $2.15 to $2.40 (GAAP EPS projected $1.74–$1.99) for fiscal year 2026
• Approximately 600 to 650 net new coffeehouses globally across company-operated and licensed businesses
• All growth targets relative to fiscal year 2025 non-GAAP measures unless specified; guidance assumes China retail operations remain company-operated in the second half of fiscal year 2026