Starbucks Corporation

In Q3, Starbucks reported consolidated net revenues of $9.3 billion, global comps growth of 7.9%, consolidated operating margin of 14.4% (up 430 basis points year over year), and EPS of $0.85 (up 70% year over year). North America company-operated comparable sales increased 8.1%, U.S. comps rose 7.9% with transactions up 4.2% and average ticket up 3.6%, and international company-operated comps grew 5.7%. Channel Development net revenues grew 22% year over year to $587.9 million, and the International segment delivered $1.3 billion of Q3 net revenues and $300.9 million of operating income. For fiscal 2026, Starbucks now expects U.S. Q4 comp growth of 6.5% or better, full-year U.S. comp growth of a little more than 6%, global comp growth nearing 6%, consolidated net revenues flat to slightly higher year over year, consolidated margin greater than 11%, and EPS of $2.55 to $2.65. The company still expects approximately 600 to 650 net new coffee house openings in fiscal 2026.

Brian Niccol framed the quarter as evidence that the Back to Starbucks plan is working, emphasizing that better operating practices, stronger staffing and coaching, and more consistent customer experiences are driving results. He said the company is reclaiming the “third place” and aiming to become the world’s greatest customer service company, with more room to grow in both morning and afternoon dayparts. He also stressed that innovation, marketing, and coffee house uplifts are building brand relevance and improving store performance, while international remains a capital-light growth opportunity.

Cathy Smith focused on the financial quality of the quarter, noting that revenue was $9.3 billion, global comps were 7.9%, operating margin expanded to 14.4%, and EPS reached $0.85. She said the margin gain was driven by sales leverage, cost savings, lower inflation, and reciprocal tariff refunds, while also noting that the year-to-date 32.3% product and distribution cost rate is a better normalized view than the quarter’s 30.3%. She added that G&A fell approximately 20%, Starbucks repaid approximately $1.8 billion of debt using China transaction proceeds, leverage improved to 2.9x, and the company remains on track with its $2 billion cost savings plan.

Analysts focused on how long the current same-store-sales momentum can last, and Niccol said there is still room to add transactions in the morning and afternoon because the company is improving staffing, routines, and customer experience. Questions also centered on the afternoon daypart, with management pointing to refreshers, matcha, and food tests as tools to build afternoon traffic. Other topics included closures of underperforming stores, tariff refunds, labor hours under Green Apron Service, digital menu boards, and delivery; management said closures are about performance and location, tariff refunds are largely complete, delivery has not shown meaningful margin trade-offs or cannibalization, and supply chain modernization—not 24-hour store operations—is the focus of the 24-hour comment.