Starbucks (SBUX) Earnings Date & Reports

Key Takeaways

• Adjusted earnings per share (EPS) reached $0.80, beating the consensus estimate of $0.71, while GAAP (generally accepted accounting principles) EPS came in at $0.59.
• Consolidated net revenue declined 4% to $9.1 billion, slightly below expectations, driven by the conversion of Starbucks China retail operations to a licensed joint venture model.
• Global comparable coffeehouse sales rose 7.2%, with North America up 7.9% and International up just 0.9%.
• For fiscal 2027, Starbucks guided non-GAAP EPS to $3.15–$3.25 and North America comparable sales growth of approximately 4.0%.
• For ongoing coverage, explore Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages.
• Discover Trending AI Robots to explore automated trading strategies built around AI-driven signals.

Earnings Context and Why It Matters

Starbucks' fourth-quarter and full fiscal year 2026 results mark a pivotal checkpoint in the company's "Back to Starbucks" turnaround strategy. The report closes a fiscal year in which management worked to refocus the brand on its coffeehouse experience while simultaneously executing a major structural change: shifting its China retail business to a licensed joint venture model. Because that transition removes a large portion of company-operated revenue, the top-line comparison is unusually complex this quarter. Investors are watching closely to determine whether North American momentum and margin expansion are strong enough to offset the China revenue step-down, making same-store sales, operating margin, and forward guidance the most important signals in this release.

Reported Results

Starbucks reported adjusted EPS of $0.80 for its fiscal fourth quarter, beating the consensus estimate of $0.71 by $0.09. GAAP EPS was $0.59. Consolidated net revenue declined 4% year over year to $9.1 billion, modestly below the roughly $9.2 billion analysts expected, largely reflecting the transition of Starbucks China retail operations to a licensed joint venture model completed earlier in fiscal 2026.

Comparable coffeehouse sales were a bright spot. Global comparable sales rose 7.2%, ahead of the roughly 6.2% Wall Street anticipated and marking a fifth consecutive quarter of better-than-expected same-store growth. North America comparable sales climbed 7.9%, supported by higher average ticket. International comparable sales rose 0.9%, falling short of expectations for growth around 3%. Adjusted operating margin expanded 460 basis points to 14.0%, while GAAP operating margin reached 10.8%, up 790 basis points. Starbucks added 303 net new coffeehouses in the quarter, ending with 41,607 locations globally, and closed roughly 250 company-operated North America coffeehouses in September under its portfolio review.

For the full fiscal year, revenue grew 2% to $37.9 billion, and adjusted EPS rose 28% to $2.72. The board declared a quarterly cash dividend of $0.63 per share.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool designed to help traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps surface trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener to streamline your research workflow.

Market Reaction and Investor Sentiment

Initial market reaction was muted-to-negative. Shares edged down roughly 1% in after-hours trading following the release, as the earnings beat and strong comparable sales growth were offset by the revenue miss and softer international performance. Investors appeared to weigh the durable strength of the North America business against lingering questions about the China transition and softer demand outside the U.S. The positive guidance for fiscal 2027 provided some support, but the revenue shortfall and International comparable sales weakness tempered enthusiasm heading into the new fiscal year.

Forward Outlook and Key Factors to Monitor

Looking ahead, Starbucks enters fiscal 2027 with a clear set of priorities and several key variables for investors to track. Management guided to non-GAAP EPS of $3.15 to $3.25, North America comparable sales growth of approximately 4.0%, and a non-GAAP operating margin of 13.5% to 14.0%.

One important detail is that fiscal 2027 is a 53-week year rather than the usual 52-week year. The extra week is expected to add roughly $700 million to revenue, and its impact will land in the fourth quarter. Management projects consolidated net revenue to decline approximately 1% for the year, primarily because of the China retail transition.

Investors will also watch the pace of store expansion, with roughly 1,200 net new coffeehouses planned globally and leadership expected to come from International markets. The planned resumption of share repurchases, mentioned by CFO Cathy Smith, adds another element to monitor alongside the recently raised dividend.

Key factors going forward include the trajectory of North American ticket and transaction growth, the ability to stabilize International comparable sales, and execution of the China licensed joint venture transition without further revenue leakage.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations