Starbucks net revenue rises 6% to $9.9bn in Q1 FY26

Core Insights - Starbucks Corporation reported consolidated net revenues of $9.9 billion for Q1 FY26, a 6% increase from $9.39 billion in the same period last year [1] - The company experienced a decline in operating income in North America, falling to $867 million from $1.2 billion in Q1 FY25 [1] - The operating margin in North America decreased to 11.9%, down from 16.7% a year earlier, attributed to labor investments and inflationary pressures [2] North America Performance - Quarterly net revenues in North America rose 3% year on year to $7.3 billion [1] - Comparable store sales in North America increased by 4% [4] - The decline in operating income was linked to increased labor costs and inflation, particularly from tariffs and high coffee prices [2] International Performance - The International segment saw net revenues rise 10% year on year to $2.1 billion [2] - Operating income in the international segment increased to $282.7 million in Q1 FY26, compared to $237.1 million in Q1 FY25 [2] - Comparable store sales internationally grew by 5% [4] Channel Development - The channel development segment generated net revenues of $522.7 million, a 20% year-on-year increase from $436.3 million in the same period of FY25 [3] Future Outlook - Starbucks expects global and US comparable store sales growth of 3% or greater for FY26, with consolidated net revenues increasing at a similar pace [4] - The company added 128 net new stores in Q1 FY26, bringing the total store count to 41,118, with 52% being company-operated and 48% licensed [5] Management Commentary - CEO Brian Niccol stated that the Q1 results indicate the success of the "Back to Starbucks" strategy, highlighting increased customer engagement and sales momentum [3]