Starbucks Comparable Sales Jump 7.2% as Adjusted Earnings Beat Estimates
Key Facts
Starbucks reported fourth-quarter fiscal 2026 results for the 52-week fiscal year ended September 27, with global comparable sales growth of 7.2%, above analysts’ expectations of 6%, and adjusted earnings of 80 cents a share versus 72 cents expected. But quarterly revenue fell 4% to $9.14 billion, below estimates of $9.2 billion. The stock fell about 2% in after-hours trading on Thursday, October 29, the day results were announced. The figures point to a recovery in café activity and per-share profitability, offset by weakness in overall revenue. The company reported results for its fourth fiscal quarter and 52-week fiscal year ended September 27.
Global comparable sales growth was driven by a 5.2% increase in average ticket and a 1.8% rise in comparable transactions, Starbucks said. In North America, comparable sales rose 7.9%, while the United States recorded growth of 7.7%. International markets posted a modest 0.9% increase, as comparable transactions there fell 2.8%. The gap shows sales growth was concentrated in the U.S. market, while international transaction counts remained under pressure. Globally, actual comparable sales growth exceeded analysts’ expectation of 6%, according to a FactSet survey cited by the Associated Press.
Consolidated net revenue fell 4% in the fourth quarter to $9.1 billion, according to the company’s statement, while the Associated Press reported the figure at $9.14 billion. Starbucks attributed the decline mainly to a lower contribution from China after converting its operations there into a licensed joint venture. Boyu Capital operates the Chinese stores, while Starbucks retains a 40% stake in the joint venture. The impact of this shift is visible in the comparison between comparable sales and total revenue: activity at existing cafés increased, but reported revenue declined year over year. Revenue had risen 5% to $9.6 billion in the fourth quarter of fiscal 2025, when global comparable sales growth was 1%.
Year over year, adjusted earnings per share jumped 54% to $0.80, while GAAP earnings per share were about $0.59. The GAAP operating margin expanded by 790 basis points to 10.8%. The company attributed the margin improvement mainly to lower restructuring costs and benefits from sales growth. The figures follow a third quarter in which global comparable sales rose 7.9%, while consolidated revenue fell 1% to $9.3 billion. Comparable sales growth therefore slowed from the previous quarter, while the revenue decline widened compared with the third-quarter drop.
The results are part of the “Back to Starbucks” plan, which has been accompanied by changes to the café network. The company closed about 250 company-owned cafés in North America during September 2026. It had closed 627 stores in North America and Europe in September 2025, in its previous major closure round. Chief Executive Brian Niccol said, “Back to Starbucks started as a turnaround plan, and it is now a growth plan.” The company plans to open about 1,200 net new cafés globally in fiscal 2027, led by international markets, across its company-owned and licensed businesses.
Starbucks expects consolidated revenue to decline about 1% in fiscal 2027, alongside growth of about 4% in North American comparable sales. The company set a range of $3.15 to $3.25 for adjusted earnings per share, compared with an analyst estimate of $3.14 a share, according to Reuters. The coming fiscal year will span 53 weeks instead of the usual 52, and the company is including the extra week’s impact in the fourth quarter. The board also declared a cash dividend of $0.63 a share, payable on November 27, 2026, to shareholders of record on November 13. The guidance pairs an expected revenue decline with a sales growth target in North America and plans to expand the café count.