Key Highlights

● Adjusted EPS of $0.80 rose 54% and beat estimates, but Revenue fell 4%.

● Global comparable store sales rose 7.2%, with US comparable sales up 7.7%.

● Fiscal 2027 adjusted EPS is guided to $3.15 to $3.25, above the $3.14 consensus.

● The company plans to resume Buybacks and raised its quarterly Dividend to $0.63.

Starbucks (NASDAQ:SBUX) is one of the stocks to watch at Friday's open after its fiscal fourth-quarter report drew a mixed reaction late Thursday. Shares fell about 2% to 3% in after-hours trading, according to market data. No reliable pre-market quote for Friday was found, so the direction of early trading is not confirmed.

A mixed report, a cautious reaction

The coffee chain reported adjusted Earnings of $0.80 per share for the quarter ended Sept. 27, up 54% from a year earlier and ahead of analyst expectations, according to market reports. GAAP earnings were $0.59 per share. But revenue of $9.1 billion fell 4% from a year earlier and came in short of the roughly $9.22 billion to $9.23 billion analysts expected.

Much of the revenue decline reflects a structural change rather than weaker demand. Starbucks converted its China retail Business into a licensed joint venture in the third quarter, which reduces company-operated revenue and replaces it with licensing income. The deal produced a pre-tax gain of $536.3 million and net proceeds of about $2.54 billion, according to the company.

The turnaround shows up in store traffic

Underlying Demand was solid. Global comparable store sales rose 7.2%, driven by a 5.2% increase in average ticket and a 1.8% rise in transactions. US comparable sales grew 7.7%, but international comparable sales rose just 0.9%, a weak spot highlighted in market reports.

Margins improved sharply. GAAP operating Margin rose to 10.8%, and adjusted Operating Margin reached 14.0%. For the full fiscal year, revenue rose 2% to $37.9 billion and adjusted EPS climbed 28% to $2.72.

"Back to Starbucks started as our turnaround plan. Now, it's our growth plan," Chairman and CEO Brian Niccol said in the release. CFO Cathy Smith said the company "returned to comp growth, expanded margin and delivered stronger earnings" in fiscal 2026.

For fiscal 2027, a 53-week year, Starbucks guided adjusted EPS to $3.15 to $3.25. The midpoint of $3.20 is above the $3.14 consensus cited in market reports. The company expects revenue to fall about 1%, including about $700 million from the extra week, as the China change continues to reduce reported sales. It forecast North America comparable sales growth of about 4%, an adjusted operating margin of 13.5% to 14.0% and about 1,200 net new stores, mostly abroad. It also plans to resume share buybacks and raised its quarterly dividend to $0.63.

Index context, risks and next steps

Starbucks is a member of the Nasdaq-100, where it sits among a small group of consumer names in a tech-heavy index. That matters on a day when Nasdaq-100 futures were down about 2.6% around 8 a.m. ET, according to market quotes, after Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) results revived concerns about AI spending.

Key risks include softer international growth, the cost of labor investments tied to the turnaround and pressure on discretionary spending if fuel prices stay high, with WTI crude near $104 a barrel this morning according to market data. The company also closed about 250 company-operated North America stores in September as part of a restructuring.

Investors will watch whether the after-hours dip deepens or reverses at the open, how analysts adjust their price targets and whether North America traffic keeps improving. The next dividend is payable Nov. 27 to shareholders of record on Nov. 13. Beyond Friday, the key questions are whether the international business can return to meaningful growth and whether the restored buyback becomes large enough to support the shares if traffic gains cool in the months ahead.