Starbucks released mixed financial results for its fiscal fourth quarter, as solid momentum in its domestic market countered persistent weakness across its international business. The coffee giant posted adjusted earnings per share of 80 cents, topping analyst forecasts of 72 cents. However, quarterly revenue dropped 4% to $9.14 billion, missing Wall Street targets due in part to structural changes in China.
Domestic Strength Drives Comparable Sales
The company demonstrated progress in its home turnaround under CEO Brian Niccol. United States comparable store sales climbed 7.7%, surpassing expectations of 6.5%. Overall global same-store sales rose 7.2%, bolstered by larger average customer spending and a 1.8% lift in transactions. Successful promotions, including the chain’s strongest autumn menu debut to date, contributed to the gains. In addition, company executives revealed that matcha has expanded into a $1 billion product category.
To support long-term recovery, the chain upgraded more than 1,700 locations across the U.S. and Canada by the close of the fiscal year, incorporating enhanced seating and improved lighting. Concurrently, Starbucks moved to shut down approximately 250 North American cafes, representing roughly 1% of its regional footprint.
International Drag and Future Guidance
In contrast to domestic gains, international same-store sales managed only a 0.9% increase, lagging behind the projected 3.2% rise as customer traffic declined. Starbucks has increasingly shifted toward licensed operations overseas, including transitioning its Chinese operations into a joint venture.
For fiscal 2027, Starbucks anticipates adjusted earnings per share between $3.15 and $3.25, while forecasting a 1% decline in net revenue alongside 4% North American comparable sales growth.