Starbucks reported mixed quarterly results on Thursday as its international coffee shops underperformed expectations.
However, its recovery in the United States continues to be confirmed, as its domestic market exceeded expectations during the final quarter of the coffee giant’s 2026 fiscal year.
“We enter fiscal 2027 with momentum, a clear set of priorities and higher ambitions for what Starbucks can become,” CEO Brian Niccol said in a video shared on the company’s website.
For fiscal 2027, Starbucks expects adjusted earnings per share of between $3.15 and $3.25, higher than Wall Street’s expectations of earnings per share of $3.14. However, the forecast revenue decline of 1% is smaller than expected; analysts forecast net revenue growth of 1.4%. The outlook includes an additional week and the effects of moving its China operations to a joint venture business model.
Shares of Starbucks fell slightly in extended trading.
Here’s what the company reported for the quarter ended September 27 versus what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: 80 cents adjusted versus 72 cents expected
- Income: $9.14 billion versus $9.23 billion expected
Starbucks reported fourth-quarter 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, a year earlier.
Excluding restructuring and impairment costs and other items, the company reported earnings per share of 80 cents.
Net revenue fell 4% to $9.14 billion, reflecting the joint venture deal in China.
The company’s global same-store sales rose 7.2%, fueled by average ticket growth and beating Wall Street estimates of 6%, according to StreetAccount. Transactions increased by 1.8% in the quarter.
Starbucks’ U.S. coffee shops reported same-store sales growth of 7.7%, beating StreetAccount’s estimates of a 6.5% increase.
Outside of North America, the company’s international comparable sales increased 0.9%, as traffic declines offset increases in average ticket. That growth fell short of analyst estimates of a 3.2% increase, according to StreetAccount.
Starbucks opened 303 net new cafes during the quarter. In September, the company announced it would close about 1% of its North American presence, or about 250 locations, as part of its turnaround.
Gn bussni
