Starbucks Shows Strong Growth, Stock Rises 7%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 06 2026
0mins
Should l Buy SBUX?
Source: Fool
- Significant Revenue Growth: In the second quarter of fiscal 2026, Starbucks reported a 9% year-over-year revenue increase, a 6.2% rise in comparable sales, and a 32% increase in earnings per share to $0.45, indicating a robust recovery that boosts investor confidence.
- Strong U.S. Market Performance: U.S. comparable sales rose 7.1%, driven by a 4.4% increase in transactions and a 2.6% rise in average ticket size, suggesting that growth is primarily due to increased customer engagement rather than just price hikes, reflecting a resurgence in the company's competitive position.
- Delivery Service Expansion: Starbucks' delivery service saw a 30% year-to-date increase, catering to consumer demand, while cold drink sales performed well, with new energy refreshers and mango flavors exceeding expectations, and cold foam sales rising 40% in the U.S.
- Completion of China Business Sale: Starbucks finalized the sale of its China business to a local partner, maintaining its status as the
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to fall
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 105.950
Low
59.00
Averages
96.12
High
115.00
Current: 105.950
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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- Brand Revitalization Strategy: Under CEO Brian Niccol, Starbucks has identified and initiated a multifaceted brand revitalization plan focused on operations, marketing, beverage innovation, and loyalty/digital strategies, demonstrating early-stage positive developments.
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- Operational Recovery Strategy: Starbucks is implementing its 'Back to Starbucks' plan, aimed at overhauling marketing, menu innovation, and customer loyalty programs to boost performance; despite experiencing nearly two years of sales decline starting in 2023, the company has begun reversing this trend since late last year.
- Market Reaction: Although TD Cowen's perspective contrasts with Wall Street consensus, where only 18 out of 40 analysts rate the stock as buy or strong buy, Starbucks shares have risen 26% year-to-date, and if this gain holds, it would mark the first annual increase since 2021.
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- Market Reaction: The layoffs may raise concerns among investors regarding Starbucks' future profitability, particularly against the backdrop of the company's efforts to enhance customer experience, potentially undermining confidence in its long-term growth prospects.
- Strategic Implications: While the layoffs represent a short-term cost-control measure, if Starbucks' turnaround strategy succeeds, it could help solidify its market position and enhance brand value in the highly competitive coffee market.
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- Operational Leverage: CFO Eliran Glazer noted that internal AI productivity gains allow the company to scale revenue without increasing headcount, indicating a higher operational efficiency achieved in a complex environment.
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