Starbucks Chairman and CEO Brian Niccol says the company’s Q1 Fiscal year 2026 financial results are evidence of its ‘Back to Starbucks’ campaign gathering traction with its customer base.
The ‘Back to Starbucks‘ initiative was launched in 2025 to “enhance the in-store experience”, including activations like the return of the condiment bar, baristas writing on cups, and a revised code of conduct.
FYQ1 comparable store sales increased by four per cent over the 13-week period ending 28 December 2025, driven by a three per cent increase in comparable transactions and a one per cent increase in average ticket, with North America and US sales comparable store sales also increasing four per cent.
International comparable store sales increased five per cent.
This increase in sales helped foster a consolidated net revenues increase of six per cent to US$9.9 billion, or a five per cent increase on a constant currency basis.
US$7.3 billion of these net revenues came from North America, which is a three per cent increase compared to Q1 FY25.
Operating income decreased to US$867 million compared to US$1.2 billion in Q1 FY25, with the operating margin contracting from 16.7 per cent to 11.9 per cent, with Starbucks citing labour investments and inflationary pressures as to why.
“Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule,” says Niccol.
“It’s great to see the sales momentum driven by more customers choosing Starbucks more often, and this is just the beginning.”
Starbucks has also introduced its Fiscal Year 2026 Guidance, where it expects global and US comparable store sales growth to rise by three per cent or more, non-GAAP consolidating margin to “slightly improve” year-on-year, non-GAAP earnings per share in the range of US$2.15 to US$2.40, and approximately 600 to 650 net new coffeehouses globally.
“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,” says Starbucks CFO Cathy Smith.
