Starbucks delivered mixed results for its fiscal fourth quarter ended September 27, with strong domestic performance offset by international headwinds. The company reported net revenue of $9.14 billion, representing a 4% decline that reflected the transition of its China business to a joint venture structure. Net income attributable to the company reached $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, earnings per share totaled 80 cents.
U.S. operations provided the bright spot in results. American cafes achieved same-store sales growth of 7.7%, surpassing analyst estimates of 6.5% growth. Globally, comparable sales increased 7.2%, driven primarily by higher average ticket values, exceeding Wall Street expectations of 6%. However, transactions grew modestly at 1.8% during the quarter. CEO Brian Niccol attributed the U.S. improvement to the company’s “Back to Starbucks” strategy, which emphasized service enhancements, store ambiance improvements, and refined marketing efforts. The company noted that brand affinity reached near-record levels, bolstered by menu innovations and successful autumn promotions including the pumpkin spice latte launch.
International results lagged expectations, with comparable sales rising just 0.9% as traffic declines offset gains in average ticket size. This performance fell short of analyst forecasts of 3.2% growth. The company has been reshaping its international footprint by transitioning most operations to a licensed model managed by local operators, following the China joint venture transition.
Looking ahead to fiscal 2027, Starbucks projected adjusted earnings per share in the range of $3.15 to $3.25, exceeding Wall Street consensus of $3.14. However, the company anticipated a 1% revenue decline, weaker than analyst expectations of 1.4% growth. The company projected North American same-store sales growth of 4% and cited anticipated coffee price deflation and moderating cafe openings as headwinds. During the quarter, Starbucks opened 303 net new cafes and completed more than 1,700 store renovations across North America.
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