Starbucks Corporation (SBUX)

In fiscal Q1 2026, Starbucks reported strong results with global same-store sales rising 4%. U.S. same-store sales also increased by 4%, driven by transaction and spending increases. Revenue grew 6% to $9.9 billion, exceeding expectations, leading to a share price jump. However, adjusted EPS of 56 cents was slightly below expectations. A restructuring effort in September 2025 involved corporate role reductions and store closures. A strike by unionized workers in November 2025 caused only brief store closures.

Starbucks experiences significant demand seasonality, with September through December being its strongest period. The launch of the Pumpkin Spice Latte in late August or early September drives sales, and the holiday season with its themed beverages and food items also contributes to strong sales. Google search interest for "Starbucks coffee beans" peaks in December.

Starbucks is a global coffeehouse chain that roasts, markets, and retails specialty coffee, operating in the Consumer Discretionary sector. The company's core business involves selling high-quality coffee, offering handcrafted beverages, food items, and packaged coffee products under brands like Starbucks Coffee, Teavana, and Seattle's Best Coffee.

Starbucks operates over 40,000 stores across 87 to 90 countries, with the United States and China being its largest markets. As of late 2025/early 2026, the United States had approximately 16,864 to 16,879 stores and China had 8,011 stores. The company is expanding in Asia and Latin America, while some developed markets are experiencing contractions.

Starbucks' brand reputation has faced challenges, with its brand value plummeting by 36% in 2025. Its reputation score declined due to weakening store patronage and a perceived misalignment with customer expectations. However, Starbucks remains strong in product quality and financial performance, and its quality perception among habitual takeaway coffee drinkers is still high. New CEO Brian Niccol is leading a "Back to Starbucks" initiative to improve sales and profitability.

Institutional investors hold over 86% of Starbucks' shares, with The Vanguard Group, Capital Research Global Investors, and BlackRock, Inc. being the largest shareholders. Individual investors and insiders hold a smaller portion, with Howard D. Schultz being the largest individual shareholder.