Starbucks Corporation
SBUX · NASDAQ-GS
Dec 2026
Next quarter
Expected to report Jan 27, 2027 — estimated from last year’s reporting date.
Consensus is $0.75 EPS for Dec 2026 across 8 estimates, ranging $0.69 to $0.79.
SBUX Sep 2026
- 9.59%
- -1.74%
- $0.73
- $0.80
- —
- —
Highlights
- Comparable sales: Global Q4 comps rose 7.2%, with transactions up 1.8% and ticket up 5.2%; North America comps increased 7.9%, including 7.7% in the U.S.
- Adjusted earnings: Non-GAAP EPS was $0.80, up 54% year over year and 9.6% above the supplied $0.73 consensus; GAAP EPS was $0.59 versus $0.12 a year ago.
- Revenue and China: Consolidated revenue fell 4.5% to $9.14 billion, largely reflecting the shift of China retail operations to a licensed joint venture; constant-currency revenue declined 3.9%.
- Margin recovery: GAAP operating margin expanded 790 basis points to 10.8%, while non-GAAP margin rose 460 basis points to 14.0%, supported by sales leverage and lower restructuring costs.
- North America strength: Segment revenue grew 6% to $7.33 billion and operating income rose to $898 million from $309 million; segment operating margin increased to 12.3% from 4.5%.
- Fiscal 2027 outlook: Starbucks expects North America comps of about 4%, non-GAAP operating margin of 13.5%–14.0%, and non-GAAP EPS of $3.15–$3.25.
- Store portfolio: Starbucks opened 303 net coffeehouses in Q4 and ended the year with 41,607; it expects about 1,200 net openings in FY27, led by International.
Analysis
Starbucks closed FY26 with stronger underlying sales and profitability, though the China transaction reduced reported revenue. Q4 revenue was $9.14 billion, down 4.5% year over year and about 1.9% from Q3’s $9.32 billion. Non-GAAP EPS of $0.80 beat the supplied $0.73 consensus by 9.6% and rose 54% from $0.52 a year ago; GAAP EPS was $0.59, versus $0.91 in Q3 and $0.12 a year earlier. GAAP operating income was $992 million, up from $278 million a year ago and slightly above Q3’s $980 million.
The defining positives were a fifth consecutive quarter of comparable-sales growth and a sharp margin recovery: global comps rose 7.2%, while non-GAAP operating margin expanded to 14.0% from 9.4%. North America led, with 7.9% comps; International comps were only 0.9%, and the China shift drove the segment’s 37% reported revenue decline. For FY26, revenue grew 2% to $37.9 billion, global comps rose 6.2%, and non-GAAP EPS increased 28% to $2.72. FY27 guidance calls for about 4% North America comp growth and $3.15–$3.25 non-GAAP EPS, with reported revenue expected to decline about 1%, including the impact of China and the 53rd week.
Comparable sales recovery
- Global demand: Q4 global comparable coffeehouse sales increased 7.2%, driven by a 5.2% increase in average ticket and 1.8% growth in transactions. This was the fifth consecutive quarter of positive comps.
- North America: Comps rose 7.9%, with transactions up 2.7% and ticket up 5.0%; U.S. comps increased 7.7% on 2.4% transaction growth and 5.2% ticket growth. Management cited product mix, food attach, pricing, and delivery as contributors to ticket.
- International: Comps grew 0.9%, as a 3.7% increase in ticket was partly offset by a 2.8% decline in transactions. Performance varied across markets, with the U.K. among the stronger contributors and tougher comparisons in Japan.
- Operating execution: Management said more than 80% of North America company-operated coffeehouses delivered positive comps, versus fewer than 50% a year earlier. Active 90-day Rewards membership reached a record 36 million.
Margin and earnings rebound
- Consolidated margins: GAAP operating income rose to $991.8 million from $278.2 million, lifting GAAP margin to 10.8% from 2.9%. Non-GAAP operating income was $1.28 billion, with margin of 14.0%, up 460 basis points year over year.
- Cost comparison: Restructuring and impairment costs declined to $272.8 million from $755.0 million in the year-ago quarter, supporting the GAAP improvement. Management also cited sales leverage, cost savings, and lower restructuring costs.
- North America profit: Segment operating income increased to $898.4 million from $308.5 million and margin expanded to 12.3% from 4.5%. The company attributed the improvement primarily to sales leverage and lower restructuring costs.
- Reported versus adjusted EPS: GAAP EPS was $0.59, including restructuring costs and a 27.1% effective tax rate, up from $0.12 a year ago. Non-GAAP EPS of $0.80 excludes specified restructuring, transition, and transformation items and was up 54%.
China and segment mix
- China transition: The conversion of Starbucks’ China retail operations to a licensed joint venture model, completed in Q3, reduced company-operated revenue and shifted activity toward licensee product sales and royalties. Starbucks’ 40% joint-venture economics are now reflected in income from equity investees.
- International results: Segment revenue fell 37% to $1.31 billion, while operating income rose 15% to $256.9 million and margin increased to 19.7% from 10.8%. The revenue decline primarily reflects China’s change in operating model, alongside lower restructuring costs and a different revenue mix.
- Other channels: Channel Development revenue declined 9% to $494.4 million, mainly due to the Global Coffee Alliance and the absence of coffee-price-related tailwinds seen earlier in the year. Operating income was essentially flat at $264.3 million.
- One-time FY26 items: The China divestiture generated a $536.3 million pre-tax gain in FY26. Full-year GAAP results also included a 34.2% effective tax rate, compared with 25.9% in FY25; non-GAAP EPS was $2.72 versus GAAP EPS of $2.21.
Fiscal 2027 outlook
- Sales and comps: Starbucks forecasts consolidated revenue to decline about 1%, including approximately $700 million associated with the 53rd week. The China transition is the primary driver of the expected decline; North America comps are expected to grow about 4% on a 52-week comparison basis.
- Margins and EPS: The company guided to non-GAAP operating margin of 13.5%–14.0% and non-GAAP EPS of $3.15–$3.25. EPS guidance includes slightly more than $0.10 from the extra week; management expects earnings growth of close to 18% at the midpoint.
- Profit drivers: Management expects margin gains to be led by North America sales leverage, disciplined coffeehouse execution, and continuing cost savings. More than half of a $2 billion gross savings program has been achieved, with further benefits expected in operating expenses and cost of goods sold.
- Revenue cadence: FY27 has 53 weeks, with the extra week reflected in Q4. Management expects North America revenue growth to trail comp growth in the first three quarters, partly due to recent company-operated closures, and expects Channel Development revenue to decline about 10%.
Portfolio and capital returns
- Store base: Starbucks ended FY26 with 41,607 coffeehouses after 617 net openings for the year; 303 net openings came in Q4. North America closed approximately 250 company-operated locations in the quarter as part of the portfolio reset.
- FY27 expansion: The company expects approximately 1,200 net new coffeehouses globally, including about 1,100 in International, with China contributing roughly half. North America is expected to add 90–100 net stores as Starbucks rebuilds its development pipeline.
- Uplifts and formats: Starbucks completed more than 1,700 North America coffeehouse uplifts by year-end, exceeding its goal, and expects more than 2,000 in FY27. Management also cited early openings of smaller-format stores and a long-term opportunity for roughly 5,000 additional North America coffeehouses.
- Shareholder distributions: The board declared a quarterly dividend of $0.63 per share. Management also expects to deploy approximately $1 billion toward share repurchases in FY27.
