Starbucks has reported a 7.2% increase in global comparable coffeehouse sales for the fourth quarter of fiscal 2026, as its ‘Back to Starbucks’ strategy continued to support sales growth and improved profitability.

For the 13 weeks ended 27 September 2026, consolidated net revenues fell 4.5% year on year to $9.14 billion, primarily reflecting the transition of the company’s retail operations in China to a licensed joint venture model.

Despite the revenue decline, operating income rose to $991.8 million, compared with $278.2 million in the same period last year. GAAP earnings per share increased to $0.59, up from $0.12, while non-GAAP earnings per share climbed 54% to $0.80.

Comparable sales growth was driven by a 5.2% increase in average transaction value and a 1.8% rise in comparable transactions.

North America recorded a 7.9% increase in comparable sales, with the US up 7.7%. International comparable sales grew 0.9%, as a 3.7% increase in average transaction value was partly offset by a 2.8% decline in transactions.

The company’s North America segment generated $7.3 billion in quarterly revenue, up 6% year on year. Operating income increased to $898.4 million from $308.5 million, with operating margin expanding to 12.3%, compared with 4.5% a year earlier. Starbucks attributed the improvement primarily to lower restructuring costs and sales leverage.

International revenue declined 37% to $1.3 billion, reflecting the change in its China operating model. However, operating income in the segment rose 15% to $256.9 million, while operating margin increased to 19.7%.

Starbucks also reported a 9% decline in revenue from its Channel Development segment, which includes its packaged coffee and other consumer products activities, to $494.4 million. The decrease was primarily driven by lower revenue from the Global Coffee Alliance.

During the quarter, the company opened 303 net new coffeehouses globally, bringing its total portfolio to 41,607 locations at the end of September. The figure includes company-operated and licensed coffeehouses.

As part of its ‘Back to Starbucks’ strategy, the company also closed approximately 250 company-operated coffeehouses in North America in September, following a review of locations that did not meet its expectations for customer experience and financial performance.

“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,” said Brian Niccol, chairman and CEO of Starbucks.

“Back to Starbucks started as our turnaround plan. Now, it's our growth plan.”

Full-year performance

For the full fiscal year, consolidated net revenues increased 2% to $37.9 billion, while global comparable coffeehouse sales rose 6.2%. Growth was supported by a 3.2% increase in comparable transactions and a 3% rise in average transaction value.

North America comparable sales increased 6.6%, while international comparable sales grew 3.7%.

Full-year GAAP operating margin expanded by 180 basis points to 9.7%. GAAP earnings per share rose 36% to $2.21, while non-GAAP earnings per share increased 28% to $2.72.

The results included a pre-tax gain of $536.3 million from the divestiture of Starbucks’ retail operations in China during the third quarter of fiscal 2026.

Cathy Smith, CFO of Starbucks, said the company intended to build on its progress in fiscal 2027.

“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,” she said.

Starbucks sets out fiscal 2027 outlook

For fiscal 2027, Starbucks expects consolidated net revenues to decline by approximately 1% year on year, including the impact of its 53rd trading week and the transition of its China retail operations to a licensed joint venture model.

The company forecasts North America comparable coffeehouse sales growth of approximately 4% and a non-GAAP operating margin of 13.5% to 14%.

Non-GAAP earnings per share are expected to reach $3.15-$3.25, including slightly more than $0.10 attributable to the additional week.

Starbucks also plans to open approximately 1,200 net new coffeehouses globally across its company-operated and licensed businesses, with international markets expected to lead expansion.

The company’s board has declared a quarterly cash dividend of $0.63 per share, payable on 27 November 2026 to shareholders of record on 13 November. Starbucks also plans to resume share repurchases in fiscal 2027.