Starbucks Corporation (SBUX) reported stronger comparable sales and earnings for its fiscal third quarter ended June 28, 2026. SBUX shares closed at $104.14, up 1.01%, then surged 6.83% in after-hours trading to $111.25. Improved customer traffic, higher spending per visit, and wider margins supported the post-market advance. The results mark a notable inflection for the coffee giant, which has been working through a multi-quarter turnaround under its Back to Starbucks initiative aimed at revitalizing the in-store experience after periods of softer traffic.

Global Comparable Sales Rise 7.9%

Global comparable store sales increased 7.9% during the fiscal third quarter. Comparable transactions rose 4.2%, while average ticket grew 3.5%, reflecting balanced growth across customer visits and spending in major markets. The transaction growth is particularly significant for Starbucks, as recovering foot traffic has been a central challenge across the quick-service restaurant sector, where many chains have relied primarily on price increases to drive comparable sales.

North America comparable sales increased 8.1%, with transactions climbing 4.5% and average ticket rising 3.5%. United States comparable sales advanced 7.9% on higher traffic and spending.

International comparable sales increased 5.7% year over year. Transactions rose 2.6% and average ticket increased 3.1%. Starbucks opened 175 net new stores during the quarter, ending with 41,304 locations worldwide. The international segment's results now reflect Starbucks' transition to a licensed joint venture model in key markets, including its divested China operations, which fundamentally changes how revenue and profitability flow through this segment.

North America Revenue Reaches $7.4 Billion

North America revenue increased 7% to $7.4 billion, driven by higher company-operated store sales across delivery, food, and customized beverages. The gains reflected stronger customer demand and improved store activity throughout the quarter.

North America operating income increased 10% to $1.0 billion. Operating margin expanded 30 basis points to 13.6%, up from 13.3% one year earlier. Sales leverage and lower inflation helped offset labor spending and restructuring costs. The margin improvement comes as food-away-from-home inflation has moderated from recent peaks, easing cost pressures across the restaurant industry.

The company ended the quarter with 18,371 North American stores, a 2% decline from the previous year following store closures and portfolio adjustments. United States stores represented 41% of Starbucks' global portfolio, totaling 16,933 locations. The deliberate reduction in store count reflects Starbucks' strategy of optimizing its footprint rather than prioritizing unit growth in its home market.

Earnings and Margins Strengthen

Consolidated net revenue decreased 1% to $9.3 billion, while GAAP operating margin expanded 60 basis points to 10.5%. Non-GAAP operating margin increased 430 basis points to 14.4%. Lower inflation, sales leverage, and tariff refunds contributed to the improved profitability. The headline revenue decline stems primarily from the structural change in Starbucks' international operations, as the licensed joint venture model generates lower recognized revenue than company-operated stores.

GAAP earnings per share rose 86% to $0.91, and non-GAAP earnings increased 70% to $0.85. Starbucks used proceeds from its China sale to repurchase approximately $1.3 billion of outstanding notes. The licensed joint venture model reduced international revenue by 34% but expanded the segment's margin by 550 basis points, illustrating the trade-off between top-line revenue and profitability that large multi-national operators navigate when shifting from direct ownership to licensing arrangements.

Channel Development revenue increased 22% to $587.9 million, with operating income rising 40% to $306.2 million. The segment's operating margin expanded 700 basis points, supported by alliance growth and tariff refunds. The Channel Development segment, which encompasses Starbucks' consumer packaged goods business including its Global Coffee Alliance with Nestlé, continued to outperform, underscoring the value of the company's brand beyond its cafe walls.

Starbucks continues to execute its Back to Starbucks plan, targeting stronger service, store execution, customer connection, and long-term value.