Starbucks’ momentum is accelerating | Food Business News

SEATTLE – Starbucks Corp.’s turnaround plan is ahead of schedule, said Brian Niccol, chairman and chief executive officer.

“Our back to Starbucks plan was built on the belief that an extraordinary cup of coffee, human connection and customer experience win the day, every day,” he said. “Our third quarter results are proof they do. We have more work to do, but we’re relentlessly focused on reclaiming the third place and becoming the world’s greatest customer service company.”

In the United States, comparable store sales rose 8% during the third quarter ended June 28, driven by transactions and ticket growth. International company-operated comparable sales grew 6%, driven by strong performances in Japan and the United Kingdom.

“We said we would drive sales growth first and earnings would follow,” Niccol said. Our results show we’re walking the talk. We’re on the right path, and we remain ahead of schedule.”

Net income for the quarter was $1 billion, equal to 91¢ per share on the common stock, and an improvement over the previous third quarter when the company earned $558 million, equal to 49¢ per share.

Quarterly sales fell approximately 1% to $9.3 billion from $9.5 billion the year before.

Contributing to the rise in earnings was the sale of Starbucks’ retail business in China, which was reflected in the quarterly results.

“We’re pleased with the healthy composition of transaction and ticket growth which we believe reflects the strengthening fundamentals of our business,” said Catherine Smith, chief financial officer. “… Our growth was broad-based across dayparts, income levels and access points. Average ticket increases were led by sustained strength in our delivery business as well as innovation-led modifications and attach. In fact, food attach reached a Q3 record across our US company-operated business with growth across all dayparts and the strongest gains in the afternoon.”

Starbucks is testing its Spritz Collection, carbonated beverages intended to extend its Refreshers platform.

| Photo: Starbucks Corp.

Niccol emphasized that Refreshers was a “standout platform” for the company during the quarter.

“I think (Refreshers has) been a platform, frankly, that we kind of got a little complacent on in the past, and now we are reinvigorating and we’re seeing a really positive response,” he said. “…The thing that’s great to see is the way people are using Refreshers, whether it’s fully decaffeinated or whether it’s fully boosted, those are the different occasions that people want refreshers, whether it’s in the morning or the afternoon and whether you’re young or old, the platform is resonating.”

To capitalize on the strength of Refreshers, Starbucks is testing the Starbucks Spritz Collection, a carbonated variety of Refreshers. The test is taking place in shops in Austin and San Antonio, Texas, and St. Louis, Mo.

“The test will evaluate customer demand, operational execution and the role sparkling beverages could play in our long-term refreshment strategy, while supporting our focus on menu innovation and afternoon growth,” the company said.

Due to the positive quarter, the company raised its guidance for fiscal 2026 and expects global comparable store sales growth to be near 6%.

“We believe our top line momentum is becoming more durable, margin expansion is taking hold, and our balance sheet is stronger,” Smith said. “While the current operating environment remains dynamic, these factors support our confidence in the trajectory of our business.

“As a result, we are raising our guidance for fiscal year 2026. With one quarter left in the year, we expect our fourth quarter comp growth in the US to be 6.5% or better. We are encouraged by our strong start to the quarter but also recognize the year-over-year traffic comparisons we will lap and the continued variability in the broader consumer landscape.”