Starbucks reported fourth-quarter earnings that beat on global same-store sales but missed on revenue, as international cafes underperformed while its U.S. business accelerated.
The company posted fiscal fourth-quarter earnings per share of 80 cents on an adjusted basis, net revenue of $9.14 billion down 4%, and global same-store sales growth of 7.2%, topping StreetAccount estimates of 6%. U.S. comparable sales rose 7.7%, beating analyst expectations of 6.5%.
International comparable sales growth of 0.9% fell short of estimates of 3.2%, held back by traffic declines as the company transitioned its China business to a joint venture model and shifted most international operations to a licensed model.
For fiscal 2027, Starbucks projects adjusted earnings per share of $3.15 to $3.25, above Wall Street's expectation of $3.14, but forecasts revenue decline of 1%, weaker than the 1.4% growth analysts expected. The company projects North American same-store sales growth of 4%.
CEO Brian Niccol said on the earnings call that Starbucks is ahead of schedule on fiscal 2028 targets from its January investor day. He attributed progress to the "Back to Starbucks" strategy, which has focused on service improvements and store renovations. The company completed more than 1,700 cafe uplifts across the U.S. and Canada by year-end. Niccol noted that "Starbucks brand affinity is at near record levels" and called the fall menu launch its strongest ever autumn opening day.
Starbucks opened 303 net new cafes in the quarter and announced in September it would close about 250 North American locations, roughly 1% of its footprint, as part of its turnaround. The company cited slight deflation in coffee prices and slowing net new North American cafe openings as headwinds to full-year revenue.