Why did Starbucks miss profit despite higher revenue?

Profit missed due to ongoing restructuring spending and customer experience investments.

Which stock is better for income investors?

McDonald’s is currently more stable for dividends, while Starbucks is in a rebuilding phase.

Starbucks vs. McDonald’s: Earnings Divergence Highlights Dividend Stability

McDonald’s (NYSE: MCD) and Starbucks (NASDAQ: SBUX) reported contrasting Q1 2026 earnings. McDonald’s posted 5.7% global comparable sales growth, beating expectations, while Starbucks topped revenue estimates but missed on profit due to ongoing turnaround spending. The divergence underscores McDonald’s dividend reliability versus Starbucks’ rebuilding phase.

McDonald’s (NYSE: MCD) and Starbucks (NASDAQ: SBUX) reported their first-quarter 2026 earnings, revealing divergent paths. McDonald’s posted 5.7% global comparable sales growth, beating estimates, while Starbucks exceeded revenue expectations but missed on profit as restructuring spending continues.

Key Financial Results

Company	Revenue	Net Income	EPS
McDonald’s	Not disclosed	Not disclosed	Not disclosed
Starbucks	Beat estimates	Missed estimates	Missed estimates

Note: Exact figures have not been released.

Earnings Highlights

McDonald’s attributed its growth to increased customer traffic and higher average check sizes. Starbucks, on the other hand, cited investments in customer experience and product expansion as reasons for the profit shortfall.

Guidance

Neither company provided specific guidance for the next quarter. McDonald’s reaffirmed its focus on operational efficiency, while Starbucks expects restructuring pressures to persist in the near term.

Stock Impact

McDonald’s shares rose following the announcement, while Starbucks shares declined. This reflects investor confidence in McDonald’s stability versus concerns over Starbucks’ transition phase.

What This Means for Investors

For income investors, McDonald’s remains a more stable dividend choice, while Starbucks may offer growth potential for risk-tolerant investors. Monitoring Starbucks’ restructuring progress is advisable before making investment decisions.