Starbucks Sees First Global Traffic Increase in Two Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2026
0mins
Should l Buy SBUX?
Source: NASDAQ.COM
- Global Sales Growth: Starbucks reported a 4% increase in global same-store sales and a 3% rise in global traffic, alongside a 1% increase in average ticket, indicating a positive sales recovery momentum despite ongoing profitability pressures.
- North America Performance: In North America, same-store sales also climbed 4% with a 3% increase in traffic, contrasting with flat sales in the previous quarter, suggesting a rebound in market demand that could lay the groundwork for future profit growth.
- China Market Transformation: The Chinese market saw a remarkable 7% jump in same-store sales, with traffic and average ticket both increasing by 2%, while Starbucks announced a shift to a licensed model with Boyu Capital acquiring a 60% stake, which may enhance operational efficiency and market adaptability.
- Future Outlook: Starbucks anticipates global same-store sales growth of 3% or better for fiscal 2026 and plans to open 600 to 650 new stores; although current adjustments may lead to short-term declines in profitability, the long-term growth potential remains promising.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to rise
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 90.430
Low
59.00
Averages
96.12
High
115.00
Current: 90.430
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Business Model Transformation: The deal transitions Starbucks to a licensed operating model, aiming to expand from approximately 8,000 stores to 20,000, significantly enhancing market coverage and customer experience.
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- Business Model Transformation: The deal transitions Starbucks to a licensed operating model, aiming to expand from approximately 8,000 stores to 20,000, significantly enhancing market coverage and customer experience.
- Market Valuation Increase: Starbucks projects its China retail business to be valued at over $13 billion, with the deal's enterprise value set at around $4 billion, indicating strong long-term growth potential in the Chinese market.
- Strategic Partnership Significance: The joint venture aims to enhance Starbucks' expansion capabilities and local relevance in China while elevating customer experience, reflecting the company's strategic focus on the Chinese market's future growth.
See More
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- Union Impact: Baristas at union-represented locations may not receive the quarterly bonuses until a collective bargaining agreement is reached, affecting approximately 5% of U.S. stores, highlighting the complexities of negotiations between the company and the union.
- Employee Pay Increase: Combined with the new bonus program, baristas could see their pay rise by as much as 8%, and all U.S. employees will be paid weekly starting in August, which will help improve employee satisfaction and retention rates.
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- Executive Confidence: CEO Brian Niccol expressed that this partnership will accelerate growth in China, combining the trusted global brand with local expertise to better serve customers and enter more cities.
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- Revenue Decline: The company reported a 19.7% year-over-year revenue drop in Q4, down to $61.6 million, with gross profit plummeting from $10 million to $1.4 million, indicating weak market demand and deteriorating profitability.
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See More
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- International Expansion Strategy: The company plans to open 1,800 net new restaurants annually by 2028, with over 1,400 coming from outside North America, which will further boost overall royalty income and profitability, strengthening its competitive position globally.
- Management Changes: New Executive Chairman Patrick Doyle, leveraging his success at Domino's Pizza, aims to improve Burger King's store economics and execution, with early signs of positive same-store sales in the U.S., suggesting that management strategies are beginning to take effect.
See More
