Starbucks Reports Q4 & FY26 Results, Issues FY27 Guidance

Starbucks Corporation Reports Q4 & FY2026 Financial Results

Summary of Operating Results

• Q4 FY2026 Revenue & Comps: Consolidated net revenues declined 4% year-over-year to $9.1 billion, primarily reflecting the transition of retail operations in China to a licensed joint venture model. Global comparable coffeehouse sales increased 7.2% (North America up 7.9%, International up 0.9%).
• Q4 FY2026 Margins & EPS: GAAP operating margin reached 10.8% (+790 bps YoY), and non-GAAP operating margin expanded 460 bps to 14.0%. GAAP EPS surged 392% to $0.59, while non-GAAP EPS expanded 54% to $0.80.
• Full Fiscal Year 2026: Consolidated net revenues rose 2% to $37.9 billion. Global comparable sales rose 6.2%. Full-year GAAP EPS stood at $2.21 (+36%) and non-GAAP EPS was $2.72 (+28%).
• Store Count: Ended the fiscal year with 41,607 coffeehouses globally (32% company-operated, 68% licensed), opening 303 net new stores in Q4.

Segment Performance (Q4 FY2026)

• North America: Net revenue increased 6% to $7.33 billion. Comparable sales grew 7.9% (ticket +5.0%, transactions +2.7%). Operating income increased 191% to $898.4 million with an operating margin of 12.3%.
• International: Net revenue dropped 37% to $1.31 billion due to the China JV conversion. Operating income grew 15% to $256.9 million with operating margin expanding to 19.7%.
• Channel Development: Net revenue decreased 9% to $494.4 million, while operating margin expanded to 53.5%.

Capital Allocation & FY2027 Outlook

• Dividends & Buybacks: Declared a quarterly cash dividend of $0.63 per share. Management signaled plans to resume share repurchases in fiscal 2027.
• FY2027 Guidance (53-week fiscal year):
  • Consolidated net revenues expected to decline ~1% YoY (including ~$700M from the 53rd week), reflecting the China transition.
  • North America comparable sales growth targeted at approximately 4.0%.
  • Non-GAAP operating margin expected between 13.5% and 14.0%.
  • Non-GAAP EPS projected at $3.15 to $3.25.
  • Approximately 1,200 net new coffeehouses expected globally.