Starbucks delivered mixed results in its final quarter of fiscal 2026, with domestic strength partially offset by international disappointment. The company’s U.S. operations significantly outperformed analyst expectations, while its global business faced headwinds from restructuring efforts and a shift in its China operations to a joint venture model.
For the quarter ended Sept. 27, Starbucks reported net income attributable to the company of $677.2 million, or 59 cents per share, compared with $133.1 million, or 12 cents per share, in the prior year period. On an adjusted basis excluding restructuring and impairment costs, the company reported earnings per share of 80 cents. Net revenue declined 4% to $9.14 billion, reflecting the impact of the China joint venture transition.
Global same-store sales increased 7.2%, driven primarily by growth in average ticket and surpassing Wall Street estimates of 6%. Within the U.S., comparable sales grew 7.7%, exceeding analyst expectations of 6.5%. However, international comparable sales growth of 0.9% fell significantly short of estimates of 3.2%, as traffic declines in those markets outweighed increases in average ticket.
For fiscal 2027, the company projected adjusted earnings per share between $3.15 and $3.25, surpassing Wall Street’s consensus estimate of $3.14 per share. However, the company anticipated a net sales decline of 1%, trailing analyst forecasts for growth of 1.4%. CEO Brian Niccol stated the company was entering the new fiscal year with momentum and clearer strategic priorities. During the quarter, Starbucks opened 303 net new cafes, while also announcing plans to close approximately 250 locations, or 1% of its North American footprint, as part of its broader turnaround strategy. Stock prices moved slightly lower in extended trading following the announcement.
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