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SBUX's Digital Menu Rollout Nears 90%: Can It Lift Afternoon Sales?
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Key Takeaways
Starbucks expects digital menu boards to reach roughly 80-90% of stores by September, supporting dayparting.
Refreshers posted double-digit U.S. revenue growth in Q3 FY26 as Starbucks targets afternoon demand.
Starbucks' food attach hit a Q3 record in U.S. company stores, with strongest gains in the afternoon.
Starbucks Corporation (SBUX - Free Report) is expanding digital menu boards as part of its effort to strengthen the afternoon daypart under the Back to Starbucks strategy. The company expects the technology to reach roughly 80-90% of its stores by September, giving it greater flexibility to adjust merchandising by time of day and place greater emphasis on afternoon-focused offerings. Starbucks believes this dayparting capability is already helping support afternoon demand.
The opportunity is important because afternoon transaction growth still trails the morning, which remains Starbucks’ strongest daypart. The company is relying on a combination of beverages, food and improved store routines to broaden afternoon occasions. Refreshers are emerging as a key driver, with the platform delivering double-digit year-over-year U.S. revenue growth in the third quarter of fiscal 2026.
There are already signs that the afternoon business is gaining traction. U.S. comparable sales increased 7.9% in the third quarter, supported by a 4.2% rise in transactions and 3.6% growth in average ticket. Growth was broad-based across dayparts, while food attach reached a third-quarter record in U.S. company-operated stores, with the strongest gains occurring in the afternoon.
The digital rollout also fits with Starbucks’ wider effort to improve the in-store experience. Digital menu boards are being added as part of coffeehouse uplifts, allowing merchandising, store design and operating improvements to work together. Starbucks has also been refining throughput across drive-thru, cafe, mobile order pickup and delivery, which is important if higher afternoon demand is to translate into stronger sales rather than added congestion.
As the rollout approaches most of the store base, the key will be whether improved merchandising translates into more frequent afternoon visits. Combined with Refreshers, Matcha, food innovation and better store execution, digital menu boards could support Starbucks’ efforts to make the afternoon a more meaningful contributor to traffic and sales growth.
Starbucks’ Afternoon Push Faces Competition From MCD and BROS
Starbucks’ effort to build a stronger afternoon business through digital menu boards, Refreshers and food innovation comes as other beverage-focused restaurant operators are also targeting incremental occasions beyond their traditional dayparts. McDonald’s Corporation (MCD - Free Report) is expanding its beverage platform across markets with crafted sodas, refreshers, cold coffee and energy drinks. Early results in the United States, Canada and Germany have exceeded expectations, with more than half of beverage traffic occurring after lunch. McDonald’s is also seeing strong food attachment and higher average checks on these orders, suggesting that beverages are helping create incremental later-day occasions.
Dutch Bros Inc. (BROS - Free Report) is similarly using beverage innovation and digital engagement to deepen customer frequency across the day. Its Myst Energy Refreshers have shown particular strength in the afternoon, while the company is also seeing usage expand into the morning. Dutch Bros has made Myst a permanent menu item after strong trial and repeat rates, reinforcing its broader strategy of using customizable energy beverages to create new occasions. More than 73% of transactions flowed through Dutch Rewards in the second quarter.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have gained 12.8% over the past year against the industry’s decline of 11.5%.
SBUX’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SBUX trades at a forward price-to-earnings (P/E) multiple of 30.43, above the industry’s average of 20.48.
SBUX’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 21.6%. EPS estimates for fiscal 2026 have increased in the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
SBUX's Digital Menu Rollout Nears 90%: Can It Lift Afternoon Sales?
Key Takeaways
Starbucks Corporation (SBUX - Free Report) is expanding digital menu boards as part of its effort to strengthen the afternoon daypart under the Back to Starbucks strategy. The company expects the technology to reach roughly 80-90% of its stores by September, giving it greater flexibility to adjust merchandising by time of day and place greater emphasis on afternoon-focused offerings. Starbucks believes this dayparting capability is already helping support afternoon demand.
The opportunity is important because afternoon transaction growth still trails the morning, which remains Starbucks’ strongest daypart. The company is relying on a combination of beverages, food and improved store routines to broaden afternoon occasions. Refreshers are emerging as a key driver, with the platform delivering double-digit year-over-year U.S. revenue growth in the third quarter of fiscal 2026.
There are already signs that the afternoon business is gaining traction. U.S. comparable sales increased 7.9% in the third quarter, supported by a 4.2% rise in transactions and 3.6% growth in average ticket. Growth was broad-based across dayparts, while food attach reached a third-quarter record in U.S. company-operated stores, with the strongest gains occurring in the afternoon.
The digital rollout also fits with Starbucks’ wider effort to improve the in-store experience. Digital menu boards are being added as part of coffeehouse uplifts, allowing merchandising, store design and operating improvements to work together. Starbucks has also been refining throughput across drive-thru, cafe, mobile order pickup and delivery, which is important if higher afternoon demand is to translate into stronger sales rather than added congestion.
As the rollout approaches most of the store base, the key will be whether improved merchandising translates into more frequent afternoon visits. Combined with Refreshers, Matcha, food innovation and better store execution, digital menu boards could support Starbucks’ efforts to make the afternoon a more meaningful contributor to traffic and sales growth.
Starbucks’ Afternoon Push Faces Competition From MCD and BROS
Starbucks’ effort to build a stronger afternoon business through digital menu boards, Refreshers and food innovation comes as other beverage-focused restaurant operators are also targeting incremental occasions beyond their traditional dayparts. McDonald’s Corporation (MCD - Free Report) is expanding its beverage platform across markets with crafted sodas, refreshers, cold coffee and energy drinks. Early results in the United States, Canada and Germany have exceeded expectations, with more than half of beverage traffic occurring after lunch. McDonald’s is also seeing strong food attachment and higher average checks on these orders, suggesting that beverages are helping create incremental later-day occasions.
Dutch Bros Inc. (BROS - Free Report) is similarly using beverage innovation and digital engagement to deepen customer frequency across the day. Its Myst Energy Refreshers have shown particular strength in the afternoon, while the company is also seeing usage expand into the morning. Dutch Bros has made Myst a permanent menu item after strong trial and repeat rates, reinforcing its broader strategy of using customizable energy beverages to create new occasions. More than 73% of transactions flowed through Dutch Rewards in the second quarter.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have gained 12.8% over the past year against the industry’s decline of 11.5%.
SBUX’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SBUX trades at a forward price-to-earnings (P/E) multiple of 30.43, above the industry’s average of 20.48.
SBUX’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 21.6%. EPS estimates for fiscal 2026 have increased in the past 60 days.
EPS Trend of SBUX Stock
Image Source: Zacks Investment Research
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.