The Zhitong Finance App learned that Starbucks (SBUX.US) announced financial results for the fourth quarter of the 2026 fiscal year after the US stock market on October 29 (early morning of October 30, Beijing time). According to financial reports, Starbucks' Q4 revenue was 9.14 billion US dollars, down about 4% year on year, lower than market expectations of 9.22 billion US dollars. The decline was mainly due to the fact that China's retail business was not consolidated after switching to a joint venture licensing model with Boyu Capital. Earnings were strong, with adjusted earnings of $0.80 per share, up 54% year over year, above analysts' expectations of $0.72.
Net profit of US$677 million surged more than fourfold year over year, partly reflecting a decrease in restructuring and impairment expenses.
Global same-store sales increased 7.2%, a fifth consecutive quarter of positive growth, higher than market expectations of about 6%. Among them, same-store sales in the US increased by 7.7%, thanks to the refurbishment of the store and the strong performance of the coffee chain's fall menu products. The North American market grew by 7.9%; the international market increased by only 0.9%, lower than expected by 3.2%, and the decline in transaction volume offset the increase in customer unit prices.
Starbucks has attracted more customers through store upgrades, service improvements, menu updates, and more targeted marketing. At the same time, the company also closed hundreds of underperforming stores in order to focus on developing better performing stores. In September, around 250 stores in North America closed.
According to data from the passenger flow analysis company Placer.ai, the passenger flow growth rate of Starbucks US stores outperformed its peers, which is mutually confirmed by financial data; however, passenger flow growth has leveled off since entering October, indicating a slowdown in momentum under a high base.
CEO Brian Nichol said in a conference call between the company and analysts that “the fundamentals of the company are being strengthened,” and “I cannot stress this enough.”
Maintaining the current pace of growth will become increasingly difficult in the future. Starbucks expects same-store sales in North America to grow by about 4% in the current fiscal year beginning in late September, indicating that after three consecutive quarters of growth of more than 7%, the growth rate is slowing.
The coffee chain's long-term goal is to increase same-store sales in the US by 3% or more.
The company expects revenue for the 2027 fiscal year to drop by about 1% (including the 53rd week impact of approximately $700 million and business transformation factors in China), with North American same-store sales increasing by about 4%, earnings per share of $3.15-$3.25, and market expectations of $3.16.