Starbucks (NASDAQ:SBUX) Beats Expectations in Strong Q1 CY2026, Stock Soars

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• Starbucks' menu offerings will face some demand challenges in the next 12 months, given the projected deceleration in revenue growth.

  60% confidence

• Same-store sales rose 6.2% year on year in Q1 CY2026, a significant recovery from -1% in the same quarter last year.

  60% confidence

• Sell-side analysts expect Starbucks revenue to grow 1.3% over the next 12 months, a deceleration versus the last seven years.

  60% confidence

• Starbucks grew sales at a 6% compounded annual growth rate over the last seven years.

  60% confidence

• Operating margin improved to 8.7% in Q1 CY2026, up from 6.9% in the same quarter last year.

  60% confidence

• Free cash flow improved to $91.8 million in Q1 CY2026, up from -$297.2 million in the same quarter last year.

  60% confidence

• Analyst consensus revenue estimate for Q1 CY2026 was $9.14 billion.

  60% confidence

• Adjusted EBITDA was $1.19 billion, beating analyst estimates of $1.18 billion by 0.8%, with a 12.5% EBITDA margin.

  60% confidence

• Starbucks revenue grew 8.8% year on year to $9.53 billion in Q1 CY2026, beating analyst estimates of $9.14 billion by 4.3%.

  60% confidence

• Starbucks scale gives it negotiating leverage with suppliers, enabling it to source ingredients at a lower cost, but limits incremental growth due to finite restaurant locations.

  60% confidence

• Analyst consensus adjusted EPS estimate for Q1 CY2026 was $0.44.

  60% confidence

• Adjusted EPS of $0.50 was 13.6% above analyst consensus estimate of $0.44 in Q1 CY2026.

  60% confidence

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