Starbucks' US business is turning around with strong comp sales of 6.2%, operating margins expanding, and the company raised full-year guidance, showing confidence in continued momentum from cost savings and the 'Back to Starbucks' plan.
Chipotle is driving traffic through menu innovation, increased limited-time offerings, a revamped loyalty program, and marketing. They have successfully handled past food-safety issues and are expected to address the recent cyclospora outbreak proactively, maintaining solid traffic momentum.
Ulta Beauty reported solid earnings with operating margin beating expectations by 120 bps and raised guidance. The company is well-positioned with its mass-to-prestige price range and strong loyalty program, making it a durable retail name even in a discretionary slowdown.