Starbucks U.S. sales beat estimates as global revenue misses
The company reported strong domestic growth but saw net revenue drop 4% to $9.14 billion, falling short of Wall Street projections.
By Anthony Shevchenko ·
Starbucks reported mixed results for its fourth fiscal quarter, with U.S. sales exceeding expectations while global revenue missed analyst targets.
Global same-store sales increased by 7.2% during the July-September period. This figure surpassed the 6% growth rate that analysts polled by FactSet had projected. The strong performance was driven primarily by the United States, where same-store sales rose by 7.7%.
Company executives described the domestic growth as broad-based, noting that customers across different age groups and income levels contributed to the gains. Traffic increased during various times of the day, aided by popular fall beverages. Starbucks also cited the rise of matcha, which has become a billion-dollar business primarily consumed in the afternoon.
The company continues to reduce its physical footprint to prioritize high-profit locations. In late September, Starbucks announced the immediate closure of 250 North American stores. This marks the second major round of closures under Chairman and CEO Brian Niccol, who assumed his role in 2024. The previous round in September 2025 resulted in the closure of 627 stores across North America and Europe.
International performance lagged significantly, with same-store sales rising by less than 1%. International store traffic declined by 2.8% during the quarter. Net revenue for the period fell by 4% to $9.14 billion, coming in below the $9.2 billion forecasted by analysts. The company attributed the shortfall to reduced contributions from China, where a joint venture with Boyu Capital was finalized in the spring. Under this agreement, Boyu Capital operates the stores while Starbucks retains a 40% interest.
Looking ahead, Starbucks projects that net revenue will decline by 1% in its 2027 fiscal year. This forecast is lower than the 1% growth rate anticipated by Wall Street. The company expects North American same-store sales to increase by 4% next year, compared to the 6.6% growth seen in the 2026 fiscal year.
After adjusting for one-time items such as restructuring costs, the company reported earnings of 80 cents per share. This result exceeded the 72 cents per share that analysts had predicted. Starbucks shares dropped nearly 2% in after-hours trading on Thursday.
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