Foot traffic and floor price under pressure; Starbucks' same-store growth slowed in the second quarter.

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Against the backdrop of the global business recovery, Starbucks China's revival process appears to be more restrained.

On April 28, Starbucks released its fiscal year 2026 second-quarter financial report for the period ending March 29, 2026. The company achieved global revenue of $9.5 billion for the quarter, up 9% year-on-year; non-GAAP earnings per share were $0.50, up 22% year-on-year, marking the first year-on-year increase in over two years.

The North American market became the main driving force, with same-store sales up 7.1%, and improvements in both transaction volume and average ticket size.

In contrast, the recovery pace in the Chinese market has noticeably slowed.

In this quarter, Starbucks China achieved revenue of $800 million, up 8% year-on-year; comparable same-store sales grew by only 0.5%, the lowest level in recent quarters.

At the same time, the total number of stores was 7,991, a decrease of 20 from the end of last quarter. While revenue growth remains steady, performance at same-stores has leveled off, reflecting marginal changes in single-store operational momentum.

Previously, Starbucks China had achieved positive same-store growth for four consecutive quarters.

More noteworthy is the growth structure. Transaction volume improvement has persisted throughout, but the average ticket size has been under sustained pressure, only seeing a 2% positive growth in the first quarter of fiscal year 2026.

The latest quarterly data reinforces this divergence: transaction volume grew by 2.1% year-on-year, but average ticket size fell by 1.6%, forming a typical "volume up, price down" trend.

In other words, consumers are returning to the stores, but their consumption patterns have changed. Whether it's more frequent small transactions or a preference for promotions and discounted products, these trends are diluting the amount spent per transaction.

Changes in consumption demand are closely related to the price competition in China's freshly brewed coffee market over the past few years.

Since 2023, local brands such as Luckin Coffee and Cotti Coffee have used "9.9 yuan coffee" as a lever to shift the industry into a more inclusive price range; by 2025, the subsidy competition around delivery channels further reinforced this price anchor.

The dramatic changes in the competitive environment have forced Starbucks to accelerate its localization shift.

In April this year, after completing the joint venture deal with Boyu Capital, Starbucks proposed the "Thousand Stores, Thousand Faces" strategy.

From lightweight stores of about 10 square meters, to mobile coffee carts in concert venues, from modular convenient stores in office buildings, to more than 800 Reserve and themed stores, Starbucks China is adapting to diverse consumption scenarios with a richer mix of store formats.

With Boyu joining and announcing plans to add over 12,000 new stores, how to accelerate store openings while maintaining brand pricing power remains a key consideration.

This is a question Starbucks China must face entering its new stage.

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