Starbucks to Release Q1 FY2026 Financial Results on January 28
Starbucks Corp (SBUX) shares rose 3.01% during regular trading, reaching a 20-day high amid positive market conditions with the Nasdaq-100 up 0.99% and the S&P 500 up 0.63%.
The company announced it will release its Q1 FY2026 financial results on January 28, 2026, at 7:45 a.m. ET, followed by a conference call at 8:00 a.m. ET. This commitment to transparency and investor communication is expected to enhance investor trust and engagement. However, analysts have expressed concerns about Starbucks, as it received an F grade for EPS revisions, indicating waning confidence in its near-term performance, which could impact investor decisions.
The upcoming earnings report is crucial for Starbucks as it navigates a competitive landscape, particularly after selling 60% of its stake in its China business. The market's reaction to the earnings release will be closely watched, especially given the mixed signals from analysts regarding the company's future performance.
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- Sales Recovery: Starbucks reported a 4% same-store sales growth in Q1 2026, with global foot traffic up 3% year-over-year, indicating a recovery in brand appeal after two years of decline, and expects same-store sales to rise by 3% or more in fiscal 2026, reflecting a positive market trend.
- New Strategy in China: Starbucks has entered a joint venture with Boyu Capital, selling a 60% stake to rapidly expand its presence, aiming to increase its 8,000 stores in China to 15,000 to 20,000, adopting an asset-light approach to adapt to the fast-changing market, highlighting its commitment to the Chinese market.
- Profitability Under Pressure: Despite the sales recovery, Starbucks faced a 9.2% increase in operating expenses in Q1, outpacing revenue growth of 5.5%, leading to a decline in operating margin from 11.9% to 9%, indicating pressures from labor investments and rising raw material costs.
- Optimistic Future Outlook: Wall Street remains optimistic about Starbucks, with expectations for adjusted operating income to grow at a compound annual rate of 16% from fiscal 2025 to 2028, reflecting confidence in the company's long-term profitability.
- Flagship Store Launch: Luckin Coffee has opened its first flagship store in Shenzhen, marking a significant shift from budget coffee kiosks to the premium market, aiming to compete directly with Starbucks' high-end roasteries, indicating a major strategic pivot.
- Product Diversification: The new store offers premium coffee sourced from Brazil, Ethiopia, and Yunnan at higher prices than traditional offerings, attracting a large customer base, with social media reports of 1 to 3-hour wait times, reflecting a rising demand for high-end coffee.
- Market Share Growth: As of September 30, 2025, Luckin reported $1.55 billion in revenue from self-operated stores, a 48% year-on-year increase, with over 29,000 locations in China, demonstrating its ability to continue expanding in a highly competitive market.
- International Expansion Plans: Luckin is increasing its store count in the U.S. and Singapore, with plans for further international market expansion, showcasing its ambition in the global coffee market, particularly among young consumers seeking new experiences and emotional fulfillment.
- Election Outcome: Japan's ruling Liberal Democratic Party (LDP) secured a supermajority in the recent elections, allowing Prime Minister Sanae Takaichi to return to power, which indicates strong voter support for her administration.
- Economic Policy Initiatives: Takaichi's agenda includes increasing defense spending and suspending certain food-related taxes, which is expected to stimulate economic growth and enhance consumer confidence, positively impacting Japan's economy.
- Market Reaction: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence in the government's future policies and economic direction.
- International Market Trends: U.S. markets also showed strong performance post-election, with major index futures rising, indicating global investor interest in tech stocks, particularly in the AI sector, further contributing to the overall market recovery.
- Big Tech Valuation Loss: According to FactSet data, Big Tech has collectively lost over $1 trillion in valuation over the past week, with Amazon alone shedding more than $300 billion, indicating a significant decline in market confidence that may lead investors to reassess the future growth potential of the tech sector.
- US-India Trade Deal Framework: The U.S. and India released a framework for a trade deal, although India showed resistance to U.S. demands for opening its agricultural market to imports, while Trump removed a 25% tariff on India for purchasing Russian oil, which could impact trade relations and future economic cooperation between the two nations.
- Luckin Coffee's High-End Store Launch: China's Luckin Coffee opened its first high-end store in Shenzhen, marking a shift from its original budget coffee kiosk strategy to directly compete with Starbucks, a strategic move that could attract a more affluent consumer base and enhance brand image and market share.
- Dow Jones Surpasses 50,000: The Dow Jones Industrial Average closed above 50,000 for the first time on Friday, driven by a rebound in tech stocks, a milestone that not only reflects a strong market recovery but may also attract more investors to focus on the long-term growth potential of the U.S. stock market.
- Viewership Expectations: Over 100 million people are expected to tune into Super Bowl LX, starting at 6:30 p.m. ET, with post-game coverage lasting until 10:30 p.m. ET; if the game becomes one-sided, Comcast could face viewer drop-off, impacting advertising revenue.
- Holiday Support: A Benzinga poll revealed that 69.4% of users favor making the Monday after the Super Bowl a holiday, while a separate survey showed 42% support for it as a federal holiday, indicating a divide in public opinion on this proposal.
- Productivity Impact: A 2023 survey indicated that 18.1 million employees are expected to miss work the day after the Super Bowl, with productivity dropping by over $5 billion during the Super Bowl week, highlighting the potential economic implications of establishing this holiday.
- Future Outlook: The Super Bowl in 2027 will coincide with Presidents' Day, which may prompt the NFL to consider making the Monday after the Super Bowl a holiday; NFL Commissioner Goodell noted that the decision not to do so in the past was to maintain audience ratings, suggesting future changes could alter this stance.
- Consistent Sales Growth: Dutch Bros has achieved 12 consecutive quarters of same-store sales growth, indicating strong operational health, while Starbucks faced six quarters of declines during the same period, highlighting increasing market competition.
- Expansion Potential: With only 1,081 locations currently in the U.S., Dutch Bros' CEO projects the potential to expand to 7,000 stores, suggesting significant future revenue and earnings growth, particularly in the eastern and northern markets.
- Revenue Structure Advantage: Dutch Bros generates nearly 75% of its revenue after 10 a.m., compared to 50% for other chains, allowing for more efficient store management and better handling of customer traffic.
- Strategic Food Initiative: Dutch Bros plans to expand its food program throughout 2026, aiming to become a one-stop shop during the morning daypart, which will attract a broader customer base and further drive sales growth.











