Starbucks stock enters fiscal 2027 with margins widening

Starbucks Corp. reported stronger comparable sales and wider margins for the fiscal fourth quarter ended September 27, 2026, while the transition of its China business reduced reported revenue. The results were released on October 29 and are detailed in the company's SEC filing.

Starbucks stock traded at 97.67 euros on Lang & Schwarz at 14:02 CET on Tuesday, November 10, 2026, 0.13 percent below the Xetra close of Monday, November 9. The comparison uses the previous Xetra session because the regular Xetra session had not yet ended.

Comparable sales strengthen the turnaround

Global comparable coffeehouse sales increased 7.2 percent in the quarter, driven by a 5.2 percent increase in average ticket and a 1.8 percent rise in comparable transactions. North America delivered 7.9 percent comparable-sales growth, with transactions up 2.7 percent and average ticket up 5.0 percent. U.S. comparable sales increased 7.7 percent.

The regional performance supported a sharp improvement in profitability. GAAP operating margin expanded to 10.8 percent from 2.9 percent a year earlier, while non-GAAP operating margin reached 14.0 percent, up 450 basis points year over year. GAAP earnings per share rose to 0.59 US dollars from 0.12 US dollars, and adjusted earnings per share increased 54 percent to 0.80 US dollars.

China reshapes reported revenue

Consolidated net revenue fell 4.5 percent to 9.14 billion US dollars. Starbucks attributed the decline primarily to the conversion of its China retail operations into a licensed joint venture model. International revenue fell 37 percent to 1.31 billion US dollars, although international operating income rose to 256.9 million US dollars and the segment margin widened to 19.7 percent.

The China transaction creates a difficult comparison for fiscal 2027 because company-operated revenue is no longer reported in the same way. Starbucks expects consolidated revenue to decline approximately 1 percent next year, including approximately 700 million US dollars related to the 53rd week. Management projects North America comparable-sales growth of approximately 4 percent, a non-GAAP operating margin of 13.5 to 14.0 percent and non-GAAP earnings per share of 3.15 to 3.25 US dollars.

Investors weigh earnings against guidance

The quarterly figures support the view that the Back to Starbucks plan is improving traffic, pricing and cost leverage in North America. The outlook, however, points to a split investment picture: operating progress is expected to continue while reported revenue remains pressured by the China restructuring and the extra fiscal week.

Starbucks also said it closed approximately 250 company-operated North America coffeehouses in September as part of its portfolio review. The company opened 303 net new coffeehouses during the quarter and ended the period with 41,607 locations. The board declared a dividend of 0.63 US dollars per share, payable on November 27, 2026, to shareholders of record on November 13.

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