Starbucks raises FY26 adjusted EPS target, buoyed by turnaround efforts from CEO
Investing.com -- Starbucks on Tuesday raised its full-year 2026 guidance for comparable-store sales growth and adjusted earnings per share, as CEO Brian Niccol's turnaround strategy is seen continuing to draw more customers to the coffee chain.
The company said it expects comparable store sales growth of 5.0% or more for fiscal year 2026, both globally and in the U.S. It said it expects adjusted earnings per share in the range of $2.25 to $2.45.
The world's largest coffee chain posted a 6.2% increase in global same-store sales for the second quarter, primarily driven by a 3.8% increase in comparable transactions and a 2.3% increase in average ticket.
Niccol's approach focuses on in-store execution through a simplified menu and reduced wait times, which has brought customers back to its core U.S. market. The company also launched the "Back to Starbucks" initiative, which includes improvements to worker compensation aimed at boosting employee retention and floor consistency following stalled talks with the union representing some U.S. baristas.
Starbucks’ second-quarter consolidated net revenues were up 9% to $9.5 billion, which easily surpassed the consensus estimate of $9.12 billion.
“Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” commented Brian Niccol, chairman and chief executive officer. “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.”
The coffee chain’s adjusted earnings per share of $0.50 for the second-quarter was $0.08 better than the analyst estimate of $0.42.
The company's quarterly consolidated operating margin reached 9.4%, up 120 basis points from the prior year.