SBUX 8-K: Smart Summary

Starbucks reported Q2 fiscal year 2026 results for the 13-week period ended March 29, 2026, with consolidated net revenues up 9% to $9.5B and global comparable store sales up 6.2%. GAAP EPS of $0.45 increased 32% year-over-year and Non-GAAP EPS of $0.50 increased 22% year-over-year. The company also raised its fiscal year 2026 guidance for comparable store sales growth and Non-GAAP EPS, and announced the closing of its joint venture with Boyu Capital for Starbucks China retail operations.

• Total net revenues: $9.5B in Q2 FY26 vs. $8.8B in Q2 FY25, up 8.8% (8.1% on a constant currency basis)
• Company-operated store revenues: $7.8B, up 7.3% YoY; Licensed store revenues: $1.1B, up 7.1% YoY; Other revenues: $626.7M, up 36.1% YoY
• GAAP operating income: $828.1M, up 37.8% YoY; GAAP operating margin expanded 180 bps to 8.7%
• Non-GAAP operating income: $891.9M, up 24.4% YoY (23.1% on constant currency basis); Non-GAAP operating margin expanded 120 bps to 9.4%
• GAAP net earnings attributable to Starbucks: $510.9M, up 33.0% YoY; net margin 5.4% vs. 4.4% prior year
• GAAP diluted EPS: $0.45, up 32.4% YoY; Non-GAAP diluted EPS: $0.50, up 22.0% YoY (22.0% on constant currency basis)
• Net cash provided by operating activities (two quarters ended Mar 29, 2026): $2B vs. $2.4B in prior year period
• Effective tax rate: 29.8% vs. 23.5% in prior year; Non-GAAP effective tax rate: 27.1%, up 340 bps YoY

• North America: Net revenues $6.9B, up 7% YoY; comparable store sales up 7.1% (transactions +4.4%, ticket +2.6%); operating income $679.9M, down 9.1% YoY; operating margin 9.9%, contracted 170 bps from 11.6%
• U.S. (supplemental): Net revenues $6.4B, up 6% YoY; comparable store sales up 7.1% (transactions +4.3%, ticket +2.7%); store count 16,944
• International: Net revenues $2.1B, up 9.9% (10%) YoY; comparable store sales up 2.6% (transactions +2.1%, ticket +0.5%); operating income $398.6M, up 83.7% YoY; operating margin 19.4%, expanded 780 bps from 11.6%
• China (supplemental): Net revenues $799.8M, up 8% YoY; comparable store sales up 0.5% (transactions +2.1%, ticket -1.6%); store count 7,991
• Channel Development: Net revenues $567.8M, up 38.8% YoY; operating income $229.9M, up 18.8% YoY; operating margin 40.5%, contracted 680 bps from 47.3%
• Corporate and Other: Net revenues $18.8M, up 46.9% YoY; operating loss ($480.3M), improved 13.9% from ($557.8M) in prior year
• Total company store count: 41,129 stores (52% company-operated, 48% licensed); net new stores opened in Q2: 11

• Cash and cash equivalents: $1.5B as of March 29, 2026, vs. $3.2B as of September 28, 2025
• Board declared a cash dividend of $0.62 per share, payable May 29, 2026, to shareholders of record on May 15, 2026; Q2 cash dividends declared per share: $0.62 vs. $0.61 in prior year
• Cash dividends paid (two quarters ended Mar 29, 2026): $1.4B vs. $1.4B in prior year period
• Company had 64 consecutive quarters of dividend payouts with CAGR of 17% over that period
• Repayments of long-term debt (two quarters ended Mar 29, 2026): $1B; long-term debt as of Mar 29, 2026: $13.1B vs. $14.6B as of Sep 28, 2025
• Current portion of long-term debt: $2B as of March 29, 2026
• Additions to property, plant and equipment (two quarters ended Mar 29, 2026): $596.4M vs. $1.3B in prior year period
• Assets held for sale: $5B and liabilities held for sale: $1.7B, related to Starbucks China retail operations classified as held for sale

• "Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth. This is the Starbucks our customers deserve and the Starbucks we believe will deliver long-term growth and value for our partners and shareholders as we execute consistently, at-scale." — Brian Niccol, chairman and chief executive officer
• "We've been clear that topline improvement would come first, with earnings growth to follow. We have more work to do, but we're pleased to see the combination of our comp growth and cost discipline starting to show up in margins." — Cathy Smith, chief financial officer

• Global and U.S. comparable store sales growth of 5.0% or greater for fiscal year 2026
• Consolidated net revenues roughly flat year over year for fiscal year 2026
• Non-GAAP consolidated operating margin to slightly improve year over year for fiscal year 2026
• Non-GAAP EPS in the range of $2.25 to $2.45 for fiscal year 2026; projected GAAP diluted EPS of $1.73–$1.93 (excludes anticipated material gain and related tax impacts from the China joint venture transaction)
• Approximately 600 to 650 net new coffeehouses globally across company-operated and licensed businesses for fiscal year 2026
• Guidance reflects Starbucks China retail operations as a joint venture licensee structure in the second half of fiscal year 2026