Quarter snapshot
Starbucks said global comparable sales rose 7.2% for the period ended Sept. 27, driven by higher average ticket, topping StreetAccount's 6% estimate. Transactions increased 1.8% in the quarter. In the U.S., same store sales advanced 7.7%, beating StreetAccount's 6.5% projection.
Outside North America, comparable sales edged up 0.9% as lower traffic offset higher spending per visit, short of the 3.2% gain analysts tracked by StreetAccount expected. Net revenue decreased 4% to $9.14 billion, which the company tied to the China joint venture arrangement.
In the fiscal fourth quarter, the company reported net income of $677.2 million, translating to 59 cents per share; a year earlier, that figure was $133.1 million and 12 cents per share. Excluding restructuring, impairment and other items, earnings were 80 cents per share. Against expectations, adjusted EPS was 80 cents versus 72 cents projected, and revenue was $9.14 billion compared with a $9.23 billion forecast.
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Outlook and market reaction
For fiscal 2027, Starbucks guided to adjusted earnings per share of $3.15 to $3.25, a notch above Wall Street's $3.14 consensus. It expects revenue to decline 1%, while analysts were looking for net sales growth of 1.4%. The company said the outlook reflects an additional week and the transition of its China operations to a joint venture model.
"We enter fiscal 2027 with momentum, a clear set of priorities and higher ambitions for what Starbucks can become," CEO Brian Niccol said in a video posted on the company's website. Shares dipped slightly in after hours trading.
What this means for your portfolio
The setup is clear: strong U.S. demand, softer international traffic, and a top line pressured by the China deal mechanics, with EPS guidance a touch above the Street. The company added 303 net new cafés in the quarter and, in September, announced plans to shutter approximately 1% of its North American footprint - around 250 locations - in a turnaround effort. The bottom line: the U.S. engine is humming, but watch how the international mix and the China joint venture flow through revenue over the next few quarters.
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