Starbucks Q4 Adjusted EPS Beats on 7.2% Comp Growth; Revenue Dips on China JV Shift, Shares Slip After Hours

Starbucks (SBUX) reported fiscal fourth-quarter adjusted EPS of $0.80, up 54% and ahead of the 72-cent LSEG consensus, while revenue of $9.14 billion slightly missed the $9.23 billion estimate. Revenue fell 4.5% by CNBC's and Zacks' count (the release says down 4%), primarily because the China business moved from company-operated stores to a licensed joint venture. GAAP EPS was $0.59.

Demand in the stores was stronger than the revenue line suggests. Global comparable store sales rose 7.2%, beating the 6% FactSet consensus, on a 5.2% rise in average ticket and 1.8% more transactions. North America comps rose 7.9% against 7% expected, and U.S. comps rose 7.7%, with transactions up 2.4%. International comps rose only 0.9%, short of the 3% Zacks cites as expected, as transactions fell 2.8%. Niccol said China exceeded its goals in fiscal 2026.

Profitability improved: the adjusted operating margin rose 450 basis points to 14.0%, and the GAAP margin was 10.8%. Niccol said "Back to Starbucks started as our turnaround plan. Now, it's our growth plan." This was the fifth straight quarter of positive global comps.

For fiscal 2027, a 53-week year, Starbucks guided revenue down about 1% including roughly $700 million from the extra week, North America comps of about 4%, an adjusted operating margin of 13.5% to 14%, and adjusted EPS of $3.15 to $3.25. CNBC's Investing Club, whose charitable trust owns the stock, noted the comp guide sits a touch below the 4.2% FactSet consensus, while the $3.20 EPS midpoint edges out $3.16.

Shares rose 2.33% in the regular session to $105.60, then fell 1.73% to $103.69 after hours, per Investing.com. Watch international transactions and whether North America comps hold near the 4% guide.