Starbucks Same-Store Sales Climb on U.S. Growth
By Katherine Hamilton
Starbucks recorded higher same-store sales in the fiscal fourth quarter, as its turnaround plan drives revenue in the U.S.
The coffee-shop chain posted a profit of $677.2 million, or 59 cents a share, compared with $133.1 million, or 12 cents a share, a year earlier.
Stripping out certain one-time items, adjusted per-share earnings were 80 cents, ahead of the 72 cents anticipated by analysts, according to FactSet.
Same-store sales increased 7.2%, primarily driven by higher average ticket values and an uptick in transactions. Analysts were projecting same-store sales growth of about 6%.
Most of the same-store sales growth was driven by North America, with a 7.7% increase in the U.S. alone. The metric increased 0.9% in international markets.
The results show progress of Starbucks' turnaround plan under Chief Executive Brian Niccol, who has been working to streamline and boost the profitability at the coffee company. Last month, Starbucks said it planned to close about 250 underperforming cafes across North America.
Niccol said that the results give him confidence that its improved performance is durable.
Total revenue in the quarter fell 4% to $9.1 billion. Analysts surveyed by FactSet forecast revenue of $9.22 billion.
The lower sales were primarily driven by the conversion of Starbucks sites in China to a licensed joint-venture model. Starbucks sold its majority stake in its China business, retaining a 40% interest and continuing to own and license its brand via a joint venture with Boyu Capital.
For the current fiscal year, Starbucks said it expects total revenue to decline 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.
Starbucks also forecast adjusted per-share earnings between $3.15 and $3.25. Analysts were looking for $3.16 a share.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
October 29, 2026 16:37 ET (20:37 GMT)
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