Will Digital Engagement Drive Starbucks' Customer Spend Growth?

Starbucks Corporation SBUX is leveraging its digital ecosystem to lift transactions, improve ticket size and enhance the customer experience. The company is focusing on loyalty, mobile ordering, delivery and operational improvements to drive spend growth.

In the third quarter of fiscal 2025, the company reported nearly 34 million 90-day active Rewards members in the United States, with non-discounted transactions growing within this base. U.S. ticket increased 2% as the company reduced discounted transactions by about one-third, reflecting stronger spend without heavy promotions.

Operational enhancements are supporting this shift. Starbucks is rolling out Green Apron Service and SmartQ to improve order speed and accuracy. Stores using these initiatives achieved faster handoffs, with about 80% of in-cafe orders completed in under four minutes, drive-thru times below four minutes, and Mobile Order and Pay transactions delivered more accurately and on time.

Looking ahead, the company plans further digital upgrades in 2026, including a reimagined Rewards program, a new mobile app, and additional Mobile Order and Pay improvements. The pickup-only store format will be phased out in favor of community coffeehouses paired with strong digital convenience. Delivery also remains a fast-growing digital channel, with transactions up more than 25% year over year and proving highly incremental to the business.

With a large and engaged loyalty base, reduced reliance on discounts, improved order execution and expanding delivery capabilities, Starbucks is positioning digital engagement as a key driver of sustained customer spend growth.

SBUX’s Price Performance, Valuation & Estimates

Shares of Starbucks have gained 7.7% in the past three months against the industry’s decline of 3.1%.

Other renowned firms that share the market space with SBUX include Dutch Bros Inc. BROS and Chipotle Mexican Grill, Inc. CMG. In the past three months, shares of Dutch Bros and Chipotle have declined 5.9% and 18.2%, respectively.

From a valuation standpoint, Starbucks trades at a forward price-to-sales ratio of 2.72, below the industry’s average of 3.79.

Notably, Dutch Bros and Chipotle are currently trading at a forward 12-month P/S ratio of 6.22 and 4.39, respectively.

The Zacks Consensus Estimate for SBUX’s fiscal 2025 EPS implies a decline of 30.5% year over year and the same for 2026 indicates a rise of 18.2%. The EPS estimates for fiscal 2025 and 2026 have declined in the past 30 days. Starbucks currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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