Will Starbucks' Store Uplifts Reset Economics and Customer Connection?

Starbucks Corporation SBUX is embarking on a portfolio-wide refresh that aims to redefine both customer experience and unit-level efficiency. The company has introduced a new “coffeehouse uplift” program, allocating roughly $150,000 per store for quick, high-impact upgrades designed to reintroduce seating, enhance warmth and create more welcoming environments with minimal downtime.

The initiative is progressing rapidly, with early work already underway in New York City and Southern California is slated to follow later in the year. By the end of 2026, Starbucks expects to have completed at least 1,000 uplifts across North America. Management views these targeted investments as a cost-disciplined alternative to major renovations while also reinforcing the “Back to Starbucks” strategy focused on restoring community connection.

In tandem, Starbucks is piloting new store prototypes built to improve unit economics. One format, featuring 32 seats and a drive-thru, comes at a roughly 30% lower construction cost. A smaller 10-seat urban model is also in development, which is expected to unlock growth in dense markets. At the same time, the company plans to sunset its mobile-order-only pickup concept by fiscal 2026, citing a lack of brand warmth in the format. The pivot reflects Starbucks’ broader ambition to balance convenience with experiential value.

Management believes these moves will reinforce operational improvements from Green Apron Service by aligning physical space with service standards. By combining cost efficiency with renewed customer connection, Starbucks is betting that store design can become a durable lever for both transaction growth and margin recovery.

How It Stacks Up to Competitors

Restaurant Brands International Inc. QSR is positioning remodels as a central lever for system health and profitability. In the second quarter of 2025, Burger King U.S., under Restaurant Brands International, completed roughly 400 remodels, with management highlighting mid-teens sales uplifts net of control. Restaurant Brands International further emphasized that these remodels enhance guest perception while improving franchisee EBITDA, strengthening the financial case for modernization. Supported by the refranchising of Carrols restaurants, where remodel execution is required for new operators, Restaurant Brands International is tightly linking modernization to operational alignment and long-term value creation.

Cracker Barrel Old Country Store, Inc. CBRL is embedding physical refresh within a broader transformation plan aimed at guest relevance. Cracker Barrel management noted that fiscal 2026 will mark the formal rollout of its brand refinement strategy, incorporating updated restaurant designs and presentations across all guest touchpoints. The company is pairing this initiative with menu innovation and loyalty expansion to reinforce brand equity. Overall, Cracker Barrel’s refresh activity reflects an approach of aligning physical upgrades with evolving consumer expectations rather than focusing solely on throughput.

SBUX’s Price Performance, Valuation & Estimates

Shares of Starbucks have gained 5.7% in the past six months against the industry’s 1.2% decline.

SBUX Six-Month Price Performance

From a valuation standpoint, Starbucks trades at a forward price-to-sales ratio of 2.66, below the industry’s average of 3.52.

The Zacks Consensus Estimate for SBUX’s fiscal 2025 EPS implies a decline of 34.4% year over year, while fiscal 2026 EPS indicates a rise of 23%. The EPS estimates for fiscal 2025 and 2026 have declined 2.7% and 2.2%, respectively, in the past 60 days.

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

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