Starbucks U.S. Sales Beat Estimates as International Growth Lags in Q4
The coffee chain's domestic turnaround accelerated while overseas comparable sales rose just 0.9%, missing Wall Street forecasts.
At a glance
- U.S. same-store sales grew 7.7% in Q4, beating the 6.5% estimate, while international sales rose only 0.9% versus a 3.2% forecast.
- Net revenue declined 4% to $9.14 billion, largely due to the China joint-venture transition, but adjusted EPS of 80 cents exceeded expectations.
- Starbucks projects FY2027 adjusted EPS of $3.15-$3.25, above consensus, but expects a 1% revenue decline instead of the 1.4% growth analysts predicted.
Starbucks reported mixed fiscal fourth-quarter results Thursday, with its U.S. turnaround gaining momentum while international cafes underperformed analyst expectations. The quarter ended Sept. 27 showed the coffee giant's domestic same-store sales climbing 7.7%, topping the 6.5% increase Wall Street had projected.
Global same-store sales rose 7.2%, beating the 6% consensus estimate, driven by growth in average ticket size. Transactions increased 1.8% worldwide. However, the international segment outside North America grew only 0.9% as traffic declines offset higher average checks, well below the 3.2% growth analysts had forecast.
Net revenue fell 4% to $9.14 billion, a decline the company attributed to its shift in China to a joint-venture business model. Net income attributable to Starbucks jumped to $677.2 million, or 59 cents per share, from $133.1 million, or 12 cents per share, a year earlier. Adjusted earnings per share came in at 80 cents.
"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 posted to the company's website.
For fiscal 2027, Starbucks guided adjusted earnings per share of $3.15 to $3.25, above the $3.14 Wall Street expected. The company projects a 1% revenue decline, weaker than the 1.4% growth analysts had modeled. The outlook includes an extra week and the effects of the China joint-venture transition.
Shares dipped slightly in extended trading. During the quarter, Starbucks opened 303 net new cafes. In September, the company announced plans to close about 250 North American locations, roughly 1% of its footprint there, as part of its ongoing turnaround effort.
Source: CNBC.
Questions and answers
- How did Starbucks U.S. same-store sales perform in Q4 fiscal 2026?
- U.S. same-store sales increased 7.7%, exceeding the 6.5% growth analysts had expected.
- Why did Starbucks net revenue fall 4% in the quarter?
- The decline reflects the company's shift in China to a joint-venture business model.
- What is Starbucks' earnings guidance for fiscal 2027?
- The company projects adjusted earnings per share of $3.15 to $3.25, above Wall Street's $3.14 estimate.
