Starbucks reported mixed quarterly results for fiscal Q4 2026, with its U.S. operations delivering strong performance while international markets underperformed expectations [1]. The coffee giant's U.S. comparable sales grew 7.7%, exceeding StreetAccount estimates of 6.5%, demonstrating momentum in CEO Brian Niccol's turnaround strategy [1]. However, international comparable sales outside North America increased only 0.9%, falling significantly short of analyst estimates of 3.2%, as traffic declines offset gains in average ticket prices [1].
On an earnings basis, Starbucks exceeded expectations with adjusted earnings per share of 80 cents compared to Wall Street's forecast of 72 cents [1]. However, revenue of $9.14 billion fell short of the expected $9.23 billion, with net revenue declining 4% year-over-year, reflecting the impact of the company's shift in its China business to a joint venture model [1]. Global same-store sales increased 7.2%, beating estimates of 6%, while transactions grew 1.8% in the quarter [1]. Net income attributable to the company reached $677.2 million, or 59 cents per share, compared to $133.1 million, or 12 cents per share, a year earlier [1].
Looking ahead to fiscal 2027, Starbucks projected adjusted earnings per share in the range of $3.15 to $3.25, exceeding Wall Street's expectations of $3.14 [1]. However, the company's anticipated revenue decline of 1% represents a significant headwind, as analysts were forecasting net sales growth of 1.4% [1]. The outlook includes the effects of an additional week and the China joint venture transition [1]. During the quarter, Starbucks opened 303 net new cafes and reiterated its plan to close approximately 250 locations, or about 1% of its North American footprint, as part of its turnaround strategy [1]. CEO Brian Niccol stated: "We enter fiscal 2027 with momentum, a clear set of priorities and higher ambitions for what Starbucks can become" [1]. Shares of Starbucks fell slightly in extended trading following the announcement [1].
CONCLUSION
Starbucks demonstrated a strengthening U.S. turnaround with better-than-expected comparable sales growth and earnings, but international weakness and a projected revenue decline in fiscal 2027 tempered investor enthusiasm. The company's mixed results and cautious forward guidance, combined with modest share price declines in extended trading, suggest a market view that near-term challenges in international markets and overall revenue growth may offset the positive momentum in the U.S. business.