In brief
Starbucks’ fourth‑quarter revenue fell 4.5 % year‑on‑year to $9.14 billion, while net income surged 408.8 % to $677.2 million, largely due to a sharp drop in restructuring and impairment costs. The revenue decline was mainly driven by the conversion of its China retail operations to a licensed joint‑venture model, but global comparable sales rose 7.2 %. The company projects a modest revenue decline (~1 %) in fiscal 2027 and plans to open 1,200 new coffeehouses worldwide.
San Francisco – Starbucks reported on Thursday that its fourth‑quarter revenue fell 4.5 percent year‑on‑year to $9.14 billion, while net income rose 408.8 percent to $677.2 million, according to a Xinhua release.
Financial Performance
For the 13‑week quarter ended September 27, 2026, net income attributable to Starbucks rose to $677.2 million from $133.1 million a year earlier, an increase of 508.8 percent. Diluted earnings per share increased to $0.59 from $0.12, and non‑GAAP adjusted earnings per share rose 53.8 percent to $0.80. Operating income jumped 256.5 percent to $991.8 million from $278.2 million last year, while the operating margin expanded to 10.8 percent from 2.9 percent.
The sharp rise in net income was largely due to a sharp decline in restructuring and impairment costs, according to Starbucks’ statement in the Xinhua article.
Revenue for the quarter fell 4.5 percent to $9.14 billion, a decrease that Starbucks attributed mainly to the conversion of its China retail operations to a licensed joint‑venture model. Global comparable coffeehouse sales rose 7.2 percent, driven by a 5.2 percent increase in average ticket and a 1.8 percent rise in comparable transactions.
In North America, comparable sales increased 7.9 percent, including a 7.7 percent rise in the United States. Revenue from the North American segment grew 6 percent to $7.33 billion. The international segment recorded a 37 percent decline in revenue to $1.31 billion, largely reflecting the restructuring of Starbucks’ China operations; international comparable sales increased 0.9 percent.
Starbucks opened a net 303 new coffeehouses during the quarter, bringing its global store count to 41,607 at the end of September.
Full‑Year Outlook
For the full fiscal year 2026, Starbucks reported revenue of $37.91 billion, up 2 percent from the previous year. Net income attributable to the company rose 36.1 percent to $2.53 billion, while diluted earnings per share increased to $2.21 from $1.63.
Looking ahead, Starbucks expects revenue to decline approximately 1 percent in fiscal 2027, primarily reflecting the transition of its China operations to the licensed joint‑venture model. The company projects approximately 4 percent growth in North American comparable sales and plans to open a net 1,200 new coffeehouses worldwide.
