Starbucks’ comparable sales jump 7.2% in fourth quarter as earnings top forecasts

Key Facts

Starbucks reported results on October 29 for its fiscal fourth quarter and fiscal 2026, ended September 27, with global comparable sales rising 7.2% in the 13-week quarter. That growth beat FactSet’s 6% estimate, while revenue was $9.14 billion, below analysts’ estimate of $9.2 billion, according to The Associated Press. Adjusted earnings per share were 80 cents, ahead of Reuters’ estimate of 72 cents. Reuters’ estimate for comparable-sales growth was 5.4%, according to LSEG data, below the reported result. The fiscal year ended September 27 after 52 weeks, according to the company’s statement.

Global sales growth came from a 5.2% increase in average ticket and a 1.8% rise in comparable transactions, according to Starbucks. In the U.S., comparable sales rose 7.7%, with average ticket up 5.2% and transactions up 2.4%. International markets posted growth of 0.9%, as a 3.7% increase in average ticket partly offset a 2.8% decline in transactions. The figures show different performance drivers across the two regions: U.S. transactions rose while international transactions did not, while higher average tickets contributed to sales growth in both. Globally, transaction growth was lower than average-ticket growth.

Consolidated revenue fell 4% to $9.1 billion, with Starbucks attributing the decline mainly to the conversion of its China retail operations to a licensed joint venture model. The shift also weighed on international segment revenue, which fell 37% to $1.3 billion. The company said the transition in China reduced revenue from company-operated cafés while contributing to higher product sales and royalties from licensees. The revenue decline was therefore tied to a change in how China’s business was recorded between direct operation and licensing, while international comparable-sales growth remained positive at 0.9%. In the third quarter, the company reported revenue of $9.3 billion, down 1%, making the fourth-quarter year-over-year decline broader.

Operating margin improved in the fourth quarter alongside higher comparable sales, with the GAAP margin reaching about 10.8% after expanding 790 basis points year over year. The non-GAAP margin was about 14.0%, up 460 basis points year over year. Starbucks attributed the GAAP margin expansion mainly to lower restructuring costs and sales leverage. The results put sales growth and earnings per share on one side, and lower consolidated revenue on the other, alongside a clear improvement in margins. For the full fiscal year, global comparable sales rose 6.2%, consolidated revenue grew 2% to $37.9 billion, and adjusted earnings per share were $2.72.

Chief Executive Brian Niccol described the “Back to Starbucks” plan as having started as a turnaround plan and now becoming a growth plan. In September, the company closed about 250 company-operated cafés in North America as part of the plan. Reuters reported that the company aims to balance labor investments of about $500 million through restructuring that includes layoffs and store closures. These steps came alongside operating-margin expansion, which the company partly attributed to lower restructuring costs and sales leverage. In the third quarter, global comparable sales had risen 7.9%, driven by a 4.2% increase in transactions and a 3.5% rise in average ticket, while revenue fell 1% to $9.3 billion.

Starbucks expects consolidated revenue to decline about 1% in fiscal 2027, with about $700 million of the decline tied to the 53rd week. It targets comparable-sales growth of about 4% for North American cafés and a consolidated non-GAAP operating margin of between 13.5% and 14.0%. Its adjusted earnings-per-share guidance ranges from $3.15 to $3.25, compared with the LSEG analyst estimate of $3.14, according to Reuters. The company also plans to add about 1,200 net cafés globally across company-operated and licensed locations, with international markets leading growth. It declared a cash dividend of $0.63 per share, payable November 27 to shareholders of record on November 13.