Key Highlights

  • Global comparable coffeehouse sales rose 7.2% in the fourth quarter, with average ticket up 5.2% and transactions up 1.8%.
  • Consolidated net revenues fell 4% to $9.1 billion as China retail moved to a licensed joint venture.
  • GAAP EPS was $0.59 against $0.12, and non-GAAP EPS was $0.80, up 54%.
  • Fiscal 2026 net revenues rose 2% to $37.9 billion, with GAAP EPS of $2.21 and non-GAAP EPS of $2.72.
  • Fiscal 2027 non-GAAP EPS is guided to $3.15 to $3.25.

Comparable sales climb 7.2% as ticket and traffic both rise

Starbucks (NASDAQ:SBUX) reported results for its 13-week fiscal fourth quarter and 52-week fiscal year ended September 27, 2026, on October 29, 2026. Global comparable coffeehouse sales increased 7.2%, driven by a 5.2% rise in average ticket and a 1.8% increase in comparable transactions.

North America comparable sales rose 7.9%, with transactions up 2.7% and ticket up 5.0%. International comparable sales rose 0.9%, as a 3.7% increase in ticket was partly offset by a 2.8% decline in comparable transactions.

China joint venture trims Revenue but lifts margins

Consolidated net revenues decreased 4% to $9.1 billion from $9.6 billion, including on a constant currency basis. The company attributed the decline primarily to converting its China retail operations to a licensed joint venture model, a divestiture completed in the third quarter of fiscal 2026 that produced a pre-tax gain of $536.3 million for the year.

The International segment shows the effect most clearly. Its net revenues fell 37% to $1.3 billion, yet Operating Income rose 15% to $256.9 million and operating Margin widened to 19.7% from 10.8%.

GAAP margin jumps 790 basis points on lower restructuring costs

GAAP Operating Margin expanded 790 basis points to 10.8%, helped by lower restructuring costs and sales leverage. Operating income was $991.8 million versus $278.2 million. Non-GAAP operating margin was 14.0%, up 450 basis points on a constant currency basis.

GAAP EPS was $0.59 compared with $0.12, and non-GAAP EPS was $0.80, up 54%. The effective tax rate was 27.1%, against 18.8%.

North America operating income rose to $898.4 million from $308.5 million, with operating margin of 12.3% versus 4.5%, and segment net revenues grew 6% to $7.3 billion. In September 2026, the company closed about 250 company-operated North America coffeehouses that did not deliver the experience and financial performance expected of the brand.

Fiscal 2026 results and cash generation

For the full year, net revenues increased 2% to $37.9 billion. Global comparable sales rose 6.2%. GAAP EPS was $2.21, up 36%, and non-GAAP EPS was $2.72, up 28%.

Net cash provided by Operating Activities was $4.99 billion, compared with $4.75 billion a year earlier. Additions to property, plant and equipment were $1.26 billion, down from $2.31 billion, which implies free Cash Flow of about $3.72 billion on a calculated basis.

Cash and cash equivalents were $3.68 billion at year end, up from $3.22 billion, while long-term Debt declined to $11.78 billion from $14.58 billion.

Dividend, Buybacks and the fiscal 2027 outlook

The board declared a cash Dividend of $0.63 per share, payable on November 27, 2026 to shareholders of record on November 13, 2026, extending 66 consecutive quarters of dividend payouts. Chief Financial Officer Cathy Smith said the company plans to resume share repurchases in fiscal 2027.

Fiscal 2027 is a 53-week year. Guidance calls for consolidated net revenues to decline about 1%, including roughly $700 million from the extra week, North America comparable sales growth of about 4.0%, and non-GAAP operating margin of 13.5% to 14.0%.

Non-GAAP EPS is guided to $3.15 to $3.25, including slightly more than ten cents from the 53rd week and about 1,200 net new coffeehouses globally.