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Starbucks Brews Up Strong Profits Despite Headwinds
30 Oct
Summary
- Fourth-quarter profits surpassed expectations, concluding fiscal 2026 positively.
- Comparable store sales rose 7.2% globally, exceeding consensus estimates.
- Fiscal 2027 guidance issued, anticipating continued operational health and growth.
Starbucks reported robust fourth-quarter profits for fiscal 2026, concluding the year on a positive note and providing optimistic guidance for fiscal 2027. Revenue reached $9.14 billion, with adjusted earnings per share (EPS) increasing 54% year-over-year to 80 cents, surpassing consensus figures. Global comparable store sales grew by 7.2%, exceeding expectations, with North America showing a 7.9% increase.
CEO Brian Niccol's leadership is credited with the company's resurgence, successfully transitioning from a turnaround plan to a growth strategy. This shift is reflected in consistent positive comparable store sales growth and enhancements to the digital rewards program, now boasting 36 million active users. Menu innovations and marketing efforts are also driving traffic and brand affinity.
Looking ahead to fiscal 2027, Starbucks projects North America comparable store sales to grow around 4%. The company anticipates adjusted operating margins between 13.5% and 14%, with adjusted EPS projected at $3.15 to $3.25. These projections suggest continued operational health and profit momentum, positioning Starbucks favorably for the new fiscal year despite potential headwinds.
