Starbucks Reports Mixed Quarterly Results As U.S. Sales Climb

Starbucks reported mixed quarterly results as its international cafes fell short of expectations, even though its U.S. turnaround continued to take hold during the final quarter of fiscal 2026.

Financial Results

Net income attributable to the company rose to $677.2 million, or 59 cents per share, up from $133.1 million, or 12 cents per share, a year earlier. Excluding restructuring and impairment costs, adjusted earnings per share reached 80 cents. Net revenue fell 4% to $9.14 billion, reflecting a joint venture deal in China. Global same-store sales increased 7.2%, beating Wall Street estimates of 6%. U.S. cafes reported same-store sales growth of 7.7%, topping estimates of 6.5%, while international comparable sales ticked up just 0.9%, falling short of the expected 3.2% increase. Shares of Starbucks fell nearly 2% in extended trading.

Strategy And Outlook

CEO Brian Niccol said the company enters fiscal 2027 with momentum, and Starbucks is ahead of schedule to meet targets laid out for fiscal 2028. Under Niccol's Back to Starbucks strategy, the company has focused on better service, welcoming cafes, and sharp marketing. The North American rollout of the fall menu was the strongest ever, and matcha is now a $1 billion drink for the brand. For fiscal 2027, Starbucks projects adjusted earnings per share between $3.15 and $3.25, topping expectations, but anticipates a revenue decline of 1% driven by an additional week, the China joint venture shift, slight deflation in coffee prices, and slowing net new North American cafe openings. CFO Cathy Smith noted these factors will weigh on full-year revenue.

Context

Large restaurant chains routinely balance strong domestic growth against weaker international segments, while managing structural changes like shifting towards joint venture or licensed business models. Turnaround strategies in the retail food sector typically focus on menu innovation, store aesthetics, and customer service improvements to revive traffic and average spending per visit.