Starbucks Corporation SBUX appears to be regaining momentum, with its revamped Starbucks Rewards program emerging as a key driver of higher customer engagement and store traffic. During the second quarter of fiscal 2026, the coffee giant reported its first year-over-year growth in both revenues and earnings in more than two years, signaling that the "Back to Starbucks" turnaround strategy is gaining traction.
The company's redesigned loyalty program helped lift 90-day active Starbucks Rewards membership to a record 35.6 million, up 4% year over year. More importantly, management highlighted that both Rewards members and non-members increased their visits during the quarter. The newly introduced 60-star redemption option quickly became the most popular reward, accounting for roughly one-third of all redemptions, while early data showed more customers visiting Starbucks four or more times each week.
The loyalty strategy is working alongside operational improvements. Starbucks posted 6.2% global comparable sales growth, including 7.1% comparable sales growth in the United States, driven by transaction growth of more than 4%. Faster service through its Green Apron Service model, expanded delivery, menu innovation and improved in-store experiences have complemented the Rewards program by encouraging repeat visits.
Management noted that the revamped Rewards platform is designed to emphasize personalization and customer recognition rather than heavy discounting. Instead of disrupting customer behavior, the changes produced higher membership and engagement, even during a period when Rewards participation typically declines seasonally.
Starbucks raised its fiscal 2026 guidance, now expecting global comparable sales growth of at least 5% and earnings per share between $2.25 and $2.45. While inflation, coffee costs and broader macroeconomic uncertainty remain as risks, the company's strengthening loyalty ecosystem and improving customer experience position it to sustain higher store traffic and support long-term growth.
Can Rivals Match Starbucks' Loyalty-Driven Traffic Growth?
Starbucks' renewed focus on loyalty and customer engagement is intensifying competition with Dutch Bros BROS and Restaurant Brands International's QSR Tim Hortons. Dutch Bros continues to expand rapidly through new store openings and its Dutch Rewards program, which encourages repeat visits with personalized offers and app-based ordering. Its younger customer base and strong beverage innovation have helped drive transaction growth, making Dutch Bros a formidable challenger in the specialty coffee market.
Meanwhile, Restaurant Brands International's Tim Hortons is leveraging its extensive footprint and Tims Rewards loyalty platform to increase customer frequency across Canada and select international markets. The brand continues to invest in digital ordering, personalized promotions and value offerings to strengthen customer retention.
While both competitors are enhancing their loyalty ecosystems, Starbucks currently holds an advantage with its record 35.6 million active Rewards members, stronger personalization features and improved in-store experience. Continued execution of its loyalty strategy and operational improvements could help Starbucks maintain higher customer traffic despite intensifying competition.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have gained 11.4% in the past year against the industry’s 5.1% decline.
SBUX’s One-Year Price Performance
From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 3.00, below the industry’s average of 3.41.
SBUX’s P/S Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 12.7%. EPS estimates for fiscal 2026 have increased in the past 60 days.
EPS Trend of SBUX Stock
SBUX’s Zacks Rank
SBUX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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