Starbucks Q2 FY26 sales rise 6.2% but growth challenges keep stock a hold at 30x earnings

Starbucks showed operational improvements in Q2 FY26 with global comparable sales up 6.2% and positive results across major markets under CEO Brian Niccol. However, the stock trades at nearly 30 times forward earnings, reflecting growth expectations that have yet to materialize. Key growth drivers like food innovation and recovery in China remain uncertain, and North American margins are still down 170 basis points year-over-year. While the business turnaround is real, the lack of clear new growth catalysts makes the current valuation difficult to justify, leading to a hold rating.