Starbucks: Can Starbucks' 39% Channel Development Growth Add a New Revenue Lever?

Starbucks Corporation SBUX exited the second quarter of fiscal 2026 with stronger momentum in Channel Development, highlighting a revenue opportunity beyond its company-operated store base. In the fiscal second quarter, Channel Development net revenues increased 39% year over year, supported by higher revenues from the Global Coffee Alliance. The growth adds another source of revenue momentum as Starbucks builds across company-operated stores, licensed stores and consumer-packaged platforms. The expansion is notable because it gives Starbucks an additional revenue path beyond company-operated stores, which remain central to the broader turnaround. Channel Development extends Starbucks' presence across packaged coffee, ready-to-drink products and consumer-packaged platforms. Product activity supported the segment's momentum in the fiscal second quarter. Starbucks cited strong early performance for its multi-serve Refreshers concentrate in North America, calling it the company's largest CPG launch in more than a decade. SBUX also noted strong customer reception and repeat purchase behavior for the product, reinforcing the relevance of its packaged-beverage innovation. The ready-to-drink portfolio adds another growth layer. Starbucks launched coffee and protein ready-to-drink beverages at the end of the fiscal second quarter, complementing its growing protein platform in coffeehouses. Alongside the Global Coffee Alliance and Refreshers concentrate, these launches broaden the company's packaged-beverage portfolio. Overall, company-operated stores remain central to Starbucks' broader recovery, but Channel Development is becoming a more visible incremental revenue opportunity. Continued momentum in the Global Coffee Alliance, early traction in CPG Refreshers and new ready-to-drink coffee and protein launches could make the segment a more meaningful contributor to Starbucks' broader revenue growth over time. SBUX's Price Performance, Valuation & Estimates Shares of Starbucks have gained 19.2% in the past year against the industry's 3.5% fall. In the same time frame, other industry players like McDonald's Corporation MCD have lost 6.8%, while Dutch Bros Inc. BROS has gained 4.1%. SBUX's One-Year Price Performance Zacks Investment Research Image Source: Zacks Investment Research From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 3.08, below the industry's average of 3.37. McDonald's and Dutch Bros have P/S ratios of 6.62 and 4.98, respectively. SBUX's P/S Ratio (Forward 12-Month) vs. Industry Zacks Investment Research Image Source: Zacks Investment Research The Zacks Consensus Estimate for SBUX's fiscal 2026 earnings per share (EPS) has remained unchanged at $2.40 in the past 30 days. EPS Trend of SBUX Stock Zacks Investment Research Image Source: Zacks Investment Research The Zacks Consensus Estimate for SBUX's fiscal 2026 EPS suggests a 12.7% year-over-year improvement. Conversely, industry players like McDonald's and Dutch Bros are likely to witness growth of 5.8% and 22.4%, respectively, year over year in 2026 earnings. 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Dutch Bros Inc. (BROS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research Zacks Investment Research Zacks Investment Research