Starbucks international business disappoints but U.S. stores outperform — SkimNews
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- Starbucks posted fiscal fourth-quarter adjusted EPS of 80 cents vs. 72 cents expected, but revenue of $9.14 billion missed the $9.23 billion consensus; net revenue fell 4% to $9.14 billion, reflecting the joint venture deal in China.
- Starbucks net income attributable to the company rose to $677.2 million, or 59 cents per share, from $133.1 million, or 12 cents per share, a year earlier.
- Starbucks global same-store sales climbed 7.2%, beating StreetAccount's 6% estimate, fueled by average ticket growth as transactions rose 1.8%.
- Starbucks U.S. cafes posted 7.7% same-store sales growth, above the 6.5% estimate, while international comparable sales outside North America rose just 0.9% versus 3.2% expected, with traffic declines offsetting higher average tickets.
- Starbucks projected fiscal 2027 adjusted EPS of $3.15–$3.25, above Wall Street's $3.14, but guided to a 1% revenue decline versus analysts' forecast of 1.4% net sales growth, with an extra week and the shift of its China business to a joint venture model included in the outlook.
- Brian Niccol said Starbucks enters fiscal 2027 "with momentum, a clear set of priorities and higher ambitions for what Starbucks can become," while shares fell slightly in extended trading.
- Starbucks opened 303 net new cafes in the quarter and, in September, announced it would close about 1% of its North American footprint — roughly 250 locations — as part of its turnaround.
Why it matters: Investors got a profit beat and a global comp-sales beat but a revenue miss and a softer fiscal 2027 sales outlook: 80 cents adjusted EPS versus 72 cents expected, while the projected 1% revenue decline trailed analysts' 1.4% growth call, with shares slipping in extended trading.
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