Starbucks reports mixed Q4 results as U.S. rebound outpaces global slowdown
The coffee chain posted a 4% revenue drop but saw U.S. same‑store sales rise 7.7% while international locations lagged.
Starbucks’ latest quarterly report shows a stark contrast between a strengthening U.S. market and weaker international performance.
For the quarter ended September 27, the coffee retailer posted net income attributable to the company of $677.2 million, or 59 cents per share, up from $133.1 million, or 12 cents per share, a year earlier. Excluding restructuring, impairment and other items, earnings per share were 80 cents.
Net revenue declined 4% to $9.14 billion, a drop the company said reflects the joint‑venture transition in its China business.
Global same‑store sales increased 7.2%, driven by higher average ticket size and surpassing StreetAccount’s estimate of 6%. Transaction volume grew 1.8% in the quarter.
U.S. cafes reported same‑store sales growth of 7.7%, exceeding StreetAccount’s forecast of a 6.5% rise, underscoring the impact of CEO Brian Niccol’s “Back to Starbucks” strategy focused on service, ambiance and marketing.
Looking ahead, Starbucks projects fiscal 2027 adjusted earnings per share between $3.15 and $3.25, slightly above Wall Street’s expectation of $3.14. The company also anticipates a 4% increase in North American same‑store sales for the year.
However, the firm expects overall revenue to decline 1% for fiscal 2027, weaker than analysts’ forecast of 1.4% net‑sales growth. CFO Cathy Smith noted that a modest deflation in coffee prices, slower net new café openings in North America, and the additional week added to the earnings outlook will weigh on full‑year revenue.
Shares slipped nearly 2% in extended trading following the release.
“We enter fiscal 2027 with momentum, a clear set of priorities and higher ambitions for what Starbucks can become,” Niccol said in a video posted on the company’s website, adding that the firm is ahead of schedule to meet its fiscal 2028 targets announced at the January investor day.
The U.S. rebound highlights the effectiveness of recent strategic shifts, even as international challenges temper overall growth.
