Starbucks stock faces China drag despite stronger fiscal 2026 finish

Published on 11/06/2026 at 14:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Starbucks stock enters fiscal 2027 after stronger comparable sales and wider margins. China remains the main drag on reported revenue.

Fiscal Momentum Meets China Headwinds

Global comparable coffeehouse sales increased 7.2% in the fiscal fourth quarter, while U.S. comparable sales rose 7.7%.
Starbucks guided for fiscal 2027 North America comparable sales growth of 4% and non-GAAP earnings per share of 3.15 to 3.25 US dollars.
The shift of China retail operations to a licensed joint venture is expected to weigh on reported revenue comparisons.

Starbucks Corp., US8552441094, Illustration mit AI erstellt.

Starbucks reported its fiscal fourth-quarter and full-year 2026 results on Thursday, October 29, after the 52-week year ended September 27. In its financial release, the company said its turnaround plan had shifted toward a growth strategy.

Global comparable coffeehouse sales increased 7.2% in the quarter, supported by a 5.2% rise in average ticket and a 1.8% increase in comparable transactions. North America comparable sales rose 7.9%, while U.S. comparable sales gained 7.7%. U.S. transactions increased 2.4%, giving investors a clearer measure of demand than pricing alone.

Margins Improve As China Reshapes Revenue

Consolidated net revenue fell 4.5% year over year 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 dropped 36.9% to 1.31 billion US dollars, although international operating income rose 15.1% to 256.9 million US dollars as the segment margin widened to 19.7%.

Reported operating margin expanded to 10.8% from 2.9% a year earlier. On a non-GAAP basis, the margin reached 14.0%, up 450 basis points year over year. Non-GAAP earnings per share increased 54% to 0.80 US dollars, while GAAP earnings per share rose to 0.59 US dollars from 0.12 US dollars. The comparison also reflects lower restructuring costs and the effects of the China transaction, so the reported earnings increase should not be treated as a pure measure of recurring operating growth.

Management expects fiscal 2027 consolidated revenue to decline approximately 1%, primarily because of the China transition, even with an additional 53rd week contributing approximately 700 million US dollars. The company expects North America comparable sales growth of approximately 4%, a non-GAAP operating margin between 13.5% and 14.0%, and non-GAAP earnings per share of 3.15 to 3.25 US dollars. Starbucks also plans approximately 1,200 net new coffeehouses worldwide, led by international markets.

Investors Track Execution In North America

For investors, the key test is whether higher customer traffic and store productivity can offset the pressure from the China structure and the slower reported revenue base. Starbucks ended the quarter with 41,607 coffeehouses and closed approximately 250 North American company-operated locations during the period as part of its portfolio review. The dividend was raised to 0.63 US dollars per share, payable on November 27 to shareholders of record on November 13.

Starbucks stock traded at 93.69 euros on Lang & Schwarz at 14:12 CET on Friday, November 6, 2026, 2.96 percent below the Xetra close of Thursday, November 5. The real-time quote of Starbucks stock reflects the current market indication, while the next quarterly update will show whether the North American recovery is translating into sustained earnings growth.