Global Finance News
01 Nov 2026, 11:47
Starbucks Q4 Comparable Sales Rise 7.2% as Turnaround Gains Momentum and FY27 Guidance Begins
Starbucks (NASDAQ: SBUX) reported stronger fiscal fourth-quarter 2026 operating trends, with global comparable coffeehouse sales rising 7.2% as both traffic and average ticket improved. North America comparable sales increased 7.9%, including 7.7% growth in the U.S.
Consolidated net revenue declined 4% to $9.1 billion, largely because Starbucks converted its China retail operations to a licensed joint-venture model. Despite the revenue decline, profitability improved sharply: GAAP operating margin expanded 790 basis points to 10.8%, while non-GAAP operating margin rose to 14.0%.
Adjusted EPS increased 54% to $0.80, while GAAP EPS climbed to $0.59 from $0.12 a year earlier. North America operating income nearly tripled to $898.4 million, with segment margin expanding to 12.3% from 4.5%, supported by lower restructuring costs and improved sales leverage.
The company said its “Back to Starbucks” strategy has shifted from a turnaround plan into a growth strategy. Starbucks closed approximately 250 North American company-operated stores during the quarter that did not meet its experience or financial-return standards.
For fiscal 2027, Starbucks expects North America comparable sales growth of about 4%, non-GAAP operating margin of 13.5%-14.0% and adjusted EPS of $3.15-$3.25. Consolidated revenue is expected to decline about 1%, primarily because of the China business-model transition, while the company plans to add approximately 1,200 net new coffeehouses globally.
Overall, the quarter suggests Starbucks’ turnaround is gaining traction, with improving traffic, stronger margins and substantially higher earnings offsetting the accounting impact of the China restructuring.
Starbucks (NASDAQ: SBUX) reported stronger fiscal fourth-quarter 2026 operating trends, with global comparable coffeehouse sales rising 7.2% as both traffic and average ticket improved. North America comparable sales increased 7.9%, including 7.7% growth in the U.S.
Consolidated net revenue declined 4% to $9.1 billion, largely because Starbucks converted its China retail operations to a licensed joint-venture model. Despite the revenue decline, profitability improved sharply: GAAP operating margin expanded 790 basis points to 10.8%, while non-GAAP operating margin rose to 14.0%.
Adjusted EPS increased 54% to $0.80, while GAAP EPS climbed to $0.59 from $0.12 a year earlier. North America operating income nearly tripled to $898.4 million, with segment margin expanding to 12.3% from 4.5%, supported by lower restructuring costs and improved sales leverage.
The company said its “Back to Starbucks” strategy has shifted from a turnaround plan into a growth strategy. Starbucks closed approximately 250 North American company-operated stores during the quarter that did not meet its experience or financial-return standards.
For fiscal 2027, Starbucks expects North America comparable sales growth of about 4%, non-GAAP operating margin of 13.5%-14.0% and adjusted EPS of $3.15-$3.25. Consolidated revenue is expected to decline about 1%, primarily because of the China business-model transition, while the company plans to add approximately 1,200 net new coffeehouses globally.
Overall, the quarter suggests Starbucks’ turnaround is gaining traction, with improving traffic, stronger margins and substantially higher earnings offsetting the accounting impact of the China restructuring.
