Last Updated -

June 16, 2026

STARBUCKS

Company Profile and Market Insights

Explore the business model, global strategy, and market performance including insights into its position in China.

Key facts

Founded 1971 • Nasdaq: SBUX • Q2 FY2026 results (Mar 29, 2026 quarter)

$9.5b

Q2 FY2026 net revenues

6.2%

Q2 FY2026 global comparable store sales

$0.50

Q2 FY2026 non-GAAP EPS

8.7%

Q2 FY2026 GAAP operating margin

41,129

Global stores at quarter-end

$567.8m

Q2 FY2026 Channel Development revenue

About

Starbucks Corporation is a global specialty coffee retailer and brand owner founded in 1971 and headquartered in Seattle. The company operates and licenses Starbucks coffeehouses, where it sells coffee, tea, espresso drinks, food, and other beverages. It also sells packaged coffee, ready-to-drink products, and other branded consumer products through channel partnerships.

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Starbucks has grown from a single coffee retailer into one of the world’s largest consumer foodservice brands. Its business is built around company-operated stores, licensed stores, and Channel Development products, with licensed operations providing a more capital-light source of royalties, product sales, and brand economics. The company describes itself as the world’s premier purveyor of specialty coffee, and its current strategic program, “Back to Starbucks,” focuses on service, store operations, marketing, menu innovation, partner investment, and the coffeehouse experience.

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As of Q2 FY2026, Starbucks had 41,129 stores globally, split 52% company-operated and 48% licensed. The United States was its largest market with 16,944 stores, while China was second with 7,991 stores and was shifting to a joint-venture licensee structure after the Boyu Capital transaction closed. In the 13 weeks ended March 29, 2026, consolidated net revenue rose 9% year over year to $9.5 billion, global comparable store sales increased 6.2%, and GAAP operating margin expanded to 8.7%.

Business Model and Market Position

Starbucks makes money through a global coffeehouse platform supported by licensed stores and branded consumer products. The core business is selling beverages, food, and coffee-related products through company-operated stores, while licensed partners operate stores under the Starbucks brand and pay royalties or buy Starbucks products. The company also earns revenue from packaged coffee, ready-to-drink beverages, and other branded products sold through retail and foodservice channels.

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In Q2 FY2026, Starbucks generated $9.5 billion of consolidated net revenue, up 9% year over year. Global comparable store sales rose 6.2%, supported by 3.8% transaction growth and 2.3% average ticket growth. The company ended the quarter with 41,129 stores worldwide, split 52% company-operated and 48% licensed.

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Company-operated stores: This is the largest revenue stream and gives Starbucks direct control over pricing, labor, service standards, menu execution, and the customer experience. It also carries the highest exposure to wages, rent, coffee costs, tariffs, and store-level operating volatility.
Licensed stores: This model expands the brand with lower capital intensity. Starbucks earns royalties, product sales, and brand economics while licensed operators carry more of the store investment and operating burden.
Channel Development: This segment sells packaged coffee, ready-to-drink products, and other branded consumer products. It is much smaller than store operations but highly profitable, with Q2 FY2026 revenue of $567.8 million and operating margin of 40.5%.

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Starbucks reports through North America, International, and Channel Development. North America remains the earnings center of the business, with Q2 FY2026 revenue of $6.9 billion and comparable store sales growth of 7.1%. The U.S. also posted 7.1% comparable store sales growth, including 4.3% transaction growth. Segment margin remained under pressure, falling to 9.9% from 11.6%, reflecting the cost of labor investment, product mix, tariffs, and elevated coffee pricing.

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The International segment generated Q2 FY2026 revenue of $2.1 billion, up 10%, with comparable store sales growth of 2.6%. International operating margin expanded to 19.4%, helped by the accounting effect of China assets being classified as held for sale and the related halt in depreciation and amortization. China remains central to Starbucks’ global footprint, with 7,991 stores at quarter-end, second only to the U.S. market with 16,944 stores.

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The China business is shifting toward a more capital-light structure. Starbucks closed its transaction with Boyu Capital for Starbucks retail operations in China, with Boyu acquiring up to 60% and Starbucks retaining 40% while continuing to own and license the brand and intellectual property. This reduces direct operating exposure in a competitive market and moves more of the China economics toward royalties, brand licensing, and retained equity participation.

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Starbucks’ main competitive advantages are its global store base, premium brand positioning, high-frequency beverage usage, loyalty ecosystem, and control over the coffeehouse experience. Starbucks Rewards is a major demand engine, with the company stating that Rewards drove nearly 60% of U.S. company-operated revenue in fiscal 2025. The “Back to Starbucks” turnaround is focused on service speed, staffing, scheduling, marketing, menu innovation, partner investment, and store experience.

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Direct competitors include Dunkin’, Dutch Bros, Tim Hortons, Costa Coffee, McDonald’s McCafé, Peet’s Coffee, Luckin Coffee in China, and local independent cafés. Compared with McDonald’s, Starbucks has a more coffee-focused premium positioning and a stronger specialty beverage identity, while McDonald’s has broader value pricing and larger global restaurant scale. Compared with Luckin Coffee in China, Starbucks has stronger global brand equity and store experience credentials, while Luckin competes aggressively on convenience, digital ordering, and price.

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Starbucks holds a leading global position in specialty coffee retail. Its scale is difficult to match, with more than 41,000 stores and a footprint anchored by the U.S. and China, which together represented 61% of global stores in Q2 FY2026. The near-term investment case depends on whether the company sustains U.S. traffic recovery, stabilizes margins, and executes the China joint-venture transition without weakening brand control.

Performance in China

China is Starbucks’ second-largest store market and remains strategically material. The company ended Q2 FY2026 with 7,991 stores in China, compared with 16,944 in the U.S., and the two markets together represented 61% of its global store base. China comparable store sales rose 0.5% in Q2 FY2026, driven by 2.1% transaction growth, partly offset by a 1.6% decline in average ticket, showing traffic recovery with ongoing pricing pressure. In Q1 FY2026, China comparable sales had increased 7%, with both transactions and ticket positive. Starbucks’ key local move is the Boyu Capital joint venture, closed by Q2 FY2026. Boyu is acquiring up to 60% of Starbucks China retail operations, while Starbucks retains 40% and continues to own and license the brand and IP. This shifts China toward a capital-light royalty and brand model while keeping exposure to long-term growth. Main competitors include lower-priced domestic coffee chains and other specialty coffee operators.

Growth and Future Prospects

Starbucks entered fiscal 2026 with a clearer turnaround agenda and stronger comparable sales momentum. In Q2 FY2026, consolidated net revenues rose 9% year over year to $9.5 billion, while global comparable store sales increased 6.2% on 3.8% transaction growth and 2.3% average ticket growth. The U.S. recovery was the most important turning point, with U.S. comparable sales up 7.1%, including 4.3% transaction growth. Profit recovery is less complete. GAAP operating margin expanded to 8.7% at the consolidated level, but North America operating margin fell to 9.9% from 11.6%, showing that labor investment, product mix, tariffs, and coffee costs still weigh on the core market.

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Key growth drivers

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U.S. traffic recovery: The Back to Starbucks plan focuses on service speed, staffing, scheduling, store experience, marketing, and menu innovation. Recent U.S. transaction growth suggests the strategy is gaining traction, but consistency across stores remains central.
Loyalty and digital engagement: Starbucks Rewards remains a major demand engine, having driven nearly 60% of U.S. company-operated revenue in fiscal 2025. The refreshed program launched in March 2026 adds tiering, faster earning for higher spending, new benefits, and non-expiring Stars for Gold and Reserve members.
Store and coffeehouse investment: Management expects to add more than 25,000 café seats across the U.S. by the end of FY2026, supporting its push to restore the coffeehouse experience while improving throughput.
International and licensed growth: Starbucks ended Q2 FY2026 with 41,129 stores, split 52% company-operated and 48% licensed. Guidance calls for approximately 600 to 650 net new coffeehouses globally in FY2026.
China restructuring: The Boyu Capital joint venture shifts China retail operations toward a more capital-light model. Starbucks retains 40% and continues to own and license the brand and intellectual property, reducing direct operating exposure while preserving participation in its second-largest store market.

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Product expansion remains tied to menu innovation, packaged coffee, ready-to-drink products, and Channel Development. This segment remains smaller than retail stores, but it is highly profitable. Q2 FY2026 Channel Development revenue rose 39% to $567.8 million, with a 40.5% operating margin.

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Challenges ahead

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Margin pressure: North America margins remain under pressure despite stronger sales.
Commodity and tariff exposure: Elevated coffee pricing and tariffs remain cost risks.
China competition: China comparable sales rose only 0.5% in Q2 FY2026, with ticket down 1.6%, indicating pricing pressure.
Turnaround execution: Sales momentum depends on sustained operational improvement, better service, and relevant menu innovation.
Portfolio rationalization: Store closures under Back to Starbucks show that weak locations remain part of the reset.

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Starbucks raised FY2026 guidance to global and U.S. comparable store sales growth of at least 5.0% and non-GAAP EPS of $2.25 to $2.45. The outlook is improving, but the investment case depends on whether traffic gains translate into durable margin recovery.

Website Investor Relations Main Competitor: Luckin Coffee

This Company Profile was written by Dominik Diemer

Dominik Diemer blends an investor mindset with execution discipline.

He is a SAFe Program Consultant (SPC) and Lean Portfolio Management (LPM) practitioner at DMG MORI Digital, working as a SAFe Release Train Engineer and internal consultant in the Lean-Agile Center of Excellence (LACE).

His focus is prioritization, flow, and dependency management that turns strategy into outcomes. With experience across Bertelsmann and the Founders Foundation, he bridges corporate and startup thinking.

He also invests privately in private equity deals, sharpening his view on business models, value drivers, and go-to-market.

StockCounterParts reflects that lens.

Dominik Diemer

Founder of StockCounterparts.com