This Is the 1 Most Important Thing to Watch When Starbucks Reports Earnings on April 28
Key Points
Starbucks demonstrated progress in its recovery in the fiscal first quarter.
Higher transactions mean more people are coming in, or buyers are shopping more frequently.
Investors should notice if the trend was sustained in the second quarter.
- These 10 stocks could mint the next wave of millionaires ›
Starbucks' (NASDAQ: SBUX) recovery looks like it's underway. Total revenue increased 6% year over year in the fiscal 2026 first quarter (ended Dec. 28), and comparable-store sales (comps) were up 4%.
It's scheduled to release second-quarter earnings on April 28, and the stock could make a big move afterwards. There will be many updates about its progress, and the most important metric to watch is U.S. transactions growth.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Starbucks.
Comps growth is always an important metric because it provides a more in-depth look at where growth is coming from than total sales, which could include new stores or acquisitions. But even comps growth could be limited as an indicator because it could come from price increases, not necessarily more-engaged buyers.
That's where transactions come in. Higher transactions are the signal that growth is coming from either more buyers, or buyers who are coming in more frequently. Either of those is a positive sign for Starbucks' recovery.
The company has been struggling for several years, and CEO Brian Niccol has been on the job for about a year and a half, trying to turn things around. One of the most obvious demonstrations of success in the first quarter was a year-over-year increase in transactions at U.S. company-operated stores for the first time in eight quarters.
The transaction volume increased 3% and was responsible for most of the comps growth. The average ticket, which is the amount of each order, was responsible for 1% growth. If the comeback strategy is indeed working, that trend should continue into the second quarter.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 972%* — a market-crushing outperformance compared to 198% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of April 22, 2026.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.
Recommended Articles
