Starbucks there was reported mixed quarterly results as an international cafe underperformed expectations.
However, changes in the US continue, as the home market exceeded expectations during the last quarter of the coffee giant’s 2026 fiscal year.
“We enter fiscal 2027 with momentum, clear priorities and higher ambitions for what Starbucks can be,” CEO Brian Niccol said in a video shared on the company’s website.
Starbucks is on track to meet its fiscal 2028 target at an investor day in January, he said on the company’s earnings conference call.
For fiscal 2027, Starbucks projects adjusted earnings per share in the range of $3.15 to $3.25, above Wall Street’s expectations for earnings per share of $3.14. However, the anticipated 1% revenue decline was weaker than expected; analysts forecast net sales growth of 1.4%.
Starbucks projected same-store sales growth in North America of 4% for the fiscal year.
The company’s earnings and earnings outlook includes an additional week and the effect of the shift in its China business to a joint venture business model. Starbucks also reflects a slight deflation in coffee prices and a net slowdown in new North American cafe openings, both of which will weigh on full-year revenue, according to CFO Cathy Smith.
Starbucks shares fell nearly 2% in extended trade.
Here’s what the company reported for the quarter ended Sept. 27 compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: 80 cents adjusted vs 72 cents expected
- result: $9.14 billion vs $9.23 billion expected
Starbucks reported fiscal fourth quarter net income attributable to the company of $677.2 million, or 59 cents per share, from $133.1 million, or 12 cents per share, a year earlier.
Excluding restructuring and disruption charges and other items, the company reported earnings per share of 80 cents.
Net income fell 4% to $9.14 billion, reflecting joint venture deals in China.
The company’s global same-store sales rose 7.2%, driven by average ticket growth, and beat Wall Street estimates of 6%, according to StreetAccount. Transactions grew 1.8% in the quarter.
US Starbucks cafes reported same-store sales growth of 7.7%, beating StreetAccount’s estimate of a 6.5% increase.
In Niccol’s “Back to Starbucks” strategy, the company has focused on improving service, making cafes more welcoming and sharpening marketing. The change has helped to win back customers.
“Starbucks brand affinity is at record levels as menu, marketing and merchandise innovations continue to create moments that push culture and bring people into the coffee house,” Niccol told analysts.
The company said the launch of its fall menu in North America, including its signature pumpkin spice latte, was the company’s strongest fall launch day yet. And matcha is now a $1 billion drink for Starbucks.
Outside North America, the company’s international comparable sales rose 0.9%, as traffic declines offset increases in average tickets. That growth fell short of analysts’ estimates of a 3.2% increase, according to StreetAccount.
After the Chinese business was transferred to a joint venture, Starbucks has converted most of its international business to a licensed model, leaving local operators in charge. The company is also exploring selling a majority stake in its Japanese business, Reuters reported in September.
Starbucks opened 303 net new cafes during the quarter. In September, the company announced it would close about 1% of its North American footprint, or about 250 locations, as part of a turnaround.
At the end of the fiscal year, in the US and Canada, the company also completed more than 1,700 cafe pickups, making the stores more customer-friendly. The company has said that the location received a makeover, with tweaks like increased seating and soft lighting, seeing higher transactions after.