Starbucks’ comparable sales rise 7.2% in fourth quarter as earnings beat estimates
Key Facts
Global comparable sales at Starbucks rose 7.2% from July to September, topping the 6% forecast by analysts surveyed by FactSet, according to the Associated Press. Quarterly net revenue, by contrast, fell 4% to $9.14 billion, below analysts’ estimate of $9.2 billion. The company also reported adjusted earnings of 80 cents per share, above the market estimate of 72 cents, according to Reuters. The results show divergent trends in the fourth fiscal quarter of 2026: improved comparable sales and earnings per share, against a decline in total revenue. The figures focus attention on the company’s ability to translate improved store performance into broader business growth.
Performance varied by region: comparable sales rose 7.7% in the United States, while increasing by less than 1% in international markets, according to the Associated Press. International store traffic fell 2.8% in the same quarter. That means global comparable sales growth came amid stronger performance in the U.S. market, while international sales growth remained limited and was accompanied by weaker customer traffic. Before reporting results, the company had forecast U.S. comparable sales growth of at least 6.5% in the fourth quarter. It also expected global comparable sales growth for fiscal 2026 to approach 6%, a level exceeded by growth in the final quarter alone.
Third-quarter results provide a recent comparison for the recovery. Global comparable sales rose 7.9% then, driven by a 4.2% increase in comparable transactions and a 3.5% rise in average ticket, according to a Starbucks statement. U.S. comparable sales grew 7.9% that quarter, compared with 5.7% in international markets. By comparison, the U.S. market continued to expand in the fourth quarter, but international sales growth slowed to less than 1% and store traffic there declined. Revenue-wise, consolidated revenue fell 1% to $9.3 billion in the third quarter, which the company said partly reflected the Starbucks China transaction. In the fourth quarter, revenue fell 4%; the Associated Press linked the weakness to lower international store traffic, without attributing the entire decline to that factor alone.
The results come amid the “Back to Starbucks” plan, which Chief Executive Brian Niccol said focuses on coffee quality, human connection and the customer experience. In a statement on third-quarter results, Niccol said: “We still have work to do, but we are relentlessly focused on reclaiming our position as the third place.” On costs, Reuters reported that the company aims to balance labor investments of nearly $500 million through restructuring, including layoffs and store closures. These steps place labor investment and restructuring in the background of the company’s efforts to improve performance, while the results do not specify how much of those investments was offset in the fourth quarter. The company’s earlier fiscal 2026 outlook included an adjusted operating margin above 11%, adjusted earnings per share of $2.55 to $2.65, and net additions of about 600 to 650 cafes globally.
The new fiscal 2027 guidance puts expected adjusted earnings at $3.15 to $3.25 per share, compared with analysts’ estimate of $3.14, according to Reuters. The bottom of the company’s range is above the market estimate, and the top is higher as well. The outlook follows a quarter that combined an earnings beat and improved comparable sales with a decline in quarterly revenue. Starbucks had previously announced that fourth-quarter and fiscal 2026 results would be released after the market close on October 29, followed by a call at 1:15 p.m. Pacific time. On the day before the announcement, shares closed at $103.20 on October 28, according to EL7 data; this was the previous day’s closing price, not a reaction to the results.