In brief
In the 13‑week quarter ended September 27, Starbucks recorded revenue of $9.14 billion versus $9.60 billion a year earlier, while net income surged to $677.2 million from $133.1 million. The decline in revenue is largely attributed to the company’s conversion of China operations to a licensed joint‑venture model, whereas global comparable sales grew 7.2%. Looking ahead, Starbucks projects a modest decline around 1% for fiscal 2027 and plans to open 1,200 new stores worldwide.
In the 13‑week quarter ended September 27, Starbucks Starbucks reported that its U.S. and international revenue fell 4.5% year‑on‑year to $9.14 billion, while net income surged 408.8% to $677.2 million, a jump attributed largely to a sharp drop in restructuring and impairment costs.
The revenue decline was driven mainly by the company’s decision to convert its China retail operations to a licensed joint‑venture model, a strategic move that reduced its direct sales in that market. Despite the drop, global comparable coffeehouse sales increased 7.2%, propelled by higher average tickets and a rise in comparable transactions.
In North America, comparable sales grew 7.9%, with the United States segment up 7.7%. Revenue from the North American segment rose 6% to $7.33 billion. The international segment, heavily impact by the China restructuring, recorded a 37% decline in revenue to $1.31 billion, though its comparable sales grew modestly 0.9%.
Operating income was a bright spot, ascending 256.5% to $991.8 million from $278.2 million a year earlier, and operating margin expanded from 2.9% to 10.8%. Diluted earnings per share climbed to $0.59 from $0.12, while non‑GAAP adjusted earnings per share rose 53.8% to $0.80.
Starbucks opened a net 303 new coffeehouses during the quarter, bringing its global store count to 41,607 by the end of September. The company reaffirmed its ongoing expansion plan, anticipating the opening of 1,200 new stores worldwide this fiscal year.
For the full fiscal year 2026, Starbucks posted revenue of $37.91 billion, up 2% from the previous year, and net income attributable to the company rose 36.1% to $2.53 billion. Diluted earnings per share increased to $2.21 from $1.63.
Looking forward, Starbucks projects a modest revenue decline of about 1% in fiscal 2027, largely reflecting the transition of its China operations to the licensed joint‑venture model. The company forecasts approximately 4% growth in North American comparable sales for the coming year.
These financial fluctuations illustrate the company’s shifting strategy in China and its emphasis on controlling costs, while continuing to drive growth in its core North American market and expanding its global footprint.
