Starbucks U.S. Sales Beat Estimates as Turnaround Gains Momentum

Starbucks reported stronger-than-expected U.S. store sales for its fourth quarter of fiscal 2026, as the coffee chain's turnaround continued to gain traction despite weaker international results. The company announced its results Thursday, Oct. 29, 2026, reporting growth in comparable sales across its global business while falling short of revenue expectations.

Comparable sales at U.S. locations increased 7.7% for the quarter ended Sept. 27, surpassing analyst expectations for 6.5% growth, according to StreetAccount. Starbucks benefited from improvements to its stores and strong demand for seasonal autumn menu items, Bloomberg reported.

Globally, comparable sales rose 7.2%, exceeding the 6% increase expected by analysts, according to StreetAccount. Transactions increased 1.8%, while higher average spending per transaction contributed to the overall sales gain.

Starbucks reported adjusted earnings of 80 cents per share, above the 72 cents analysts expected, according to an LSEG survey. Revenue reached $9.14 billion, below the $9.23 billion forecast.

Net income attributable to Starbucks climbed to $677.2 million, or 59 cents per share, from $133.1 million, or 12 cents per share, a year earlier. Excluding restructuring charges, impairment costs and other items, adjusted earnings reached 80 cents per share.

Net revenue declined 4% year over year, reflecting the company's transition to a joint venture business model in China. The arrangement also affects comparisons with previous reporting periods.

International comparable sales increased just 0.9%, falling short of analysts' 3.2% growth estimate, according to StreetAccount. Declining customer traffic offset gains in average transaction value, highlighting the uneven performance between Starbucks' U.S. business and its international markets.

Chief Executive Officer Brian Niccol said the company was entering its next fiscal year with a renewed focus on its recovery strategy and further growth.

"We enter fiscal 2027 with momentum, a clear set of priorities and higher ambitions for what Starbucks can become," Niccol said in a video published on the company's website.

For fiscal 2027, Starbucks forecast adjusted earnings of $3.15 to $3.25 per share, exceeding Wall Street's expected $3.14. However, the company projected revenue to decline 1%, compared with analysts' forecast for 1.4% growth. The outlook incorporates an additional week in the fiscal year and the impact of the change in its China business model.

Starbucks shares edged lower in extended trading following the results. During the quarter, the company opened 303 net new cafes. In September, it also announced plans to close approximately 250 locations, representing about 1% of its North American store footprint, as part of its turnaround efforts.