Starbucks same-store sales climb amid strong U.S. growth
Starbucks Corp.’s turnaround strategy continues to yield positive results — particularly in its home market.
The coffee giant ended its fiscal year on an upbeat note, with fourth-quarter income that easily beat Street expectations, fueled by strong U.S. results even as the sale of its China business took a toll on revenue. Starbucks’ overall results reflect the progress of its “Back to Starbucks” turnaround strategy, which includes a renewed focus on its physical stores, improved service and streamlining of operations.
“Our plan is working,” CEO Brian Niccol said on the earnings call. “More customers are visiting us because the Starbucks experience is better. Our coffeehouses are coffeehouses again, our partners are creating more moments of connection. Our brand is more visible, relevant and loved.”
As part of its turnaround strategy, Starbucks has been updating its locations in North America. To date, it has completed more than 1,700 total uplifts across, bringing back comfortable seating and the “third place” experience to its cafes.
“Uplifted coffeehouses continue to show transaction lift across access points, dayparts, formats and loyalty groups, giving us confidence to continue our pace of work,” he told analysts.
[READ MORE: Starbucks closing 250 locations in North America; accelerating café remodels]
Starbucks expects to do more 2,000 uplifts in its new fiscal year. The company is also closing coffeehouses in North America that “didn't show a path to delivering the experience or financial performance we expect,” Niccol said.
Fourth Quarter
Net income totaled $677.2 million, or $0.59 per share, for the quarter ended Sept. 27, up from $133.1 million, or $0.12 per share, in the year-ago period. Adjusted earnings were $0.80 per share, topping the $0.72 analysts had expected.
Total net revenue fell 4% to $9.14 billion, reflecting the conversion of Starbucks sites in China to a licensed joint-venture model. Analysts were looking for revenue of $9.22 billion.
Global same-store sales rose 7.2%, primarily driven by a 5.2% increase in average ticket and a 1.8% increase in comparable transactions.
Same-store sales in Starbuck’s U.S. cafes rose 7.7%, with a 2.4% increase in comparable transactions. International comparable sales were up 0.9%.
“We had a terrific quarter and a great year driven by our focus on the fundamentals and what has always set Starbucks apart: exceptional coffee, a moment of connection and a world-class customer experience,” Niccol said in the earnings statement. “This gives me confidence our performance is durable. “Back to Starbucks started as our turnaround plan. Now, it's our growth plan.”
For the full year, consolidated net revenues grew 2.1% to $37.9 billion. Global company-operated comps were up 6.2%, with U.S. comps up 6.5% and international comps up 3.7%.
“In fiscal 2026, we returned to comp growth, expanded margin and delivered stronger earnings, and we intend to build on that progress in fiscal 2027,” said CFO Cathy Smith. “Our recently increased dividend and plans to resume share repurchases in fiscal 2027 underscore our confidence and disciplined focus on driving sustainable long-term value.”
Starbucks expects total revenue for its current fiscal year to fall by about 1%, which includes a roughly $700 million impact due to a 53rd week in the year. It expects same-store sales to grow 4% in North America. It forecast adjusted per-share earnings between $3.15 and $3.25.
The company opened 303 net new coffeehouses during the quarter, for a total of 41,607 locations of which 32% were company-operated and 68% licensed. Coffeehouses in the U.S. comprised 40% of the company’s global portfolio, with 16,781 locations.
