| Starbucks sales miss expectations despite strong U.S. turnaround |
Starbucks has reported mixed fiscal fourth-quarter results, with net revenue declining 4% to $9.14bn, below analyst expectations of $9.23bn, while net income rose to $677.2m from $133.1m a year earlier. Adjusted earnings per share reached $0.80, exceeding forecasts of $0.72, as the company's U.S. turnaround continued to gain momentum. U.S. comparable sales increased 7.7%, ahead of expectations of 6.5%, while global comparable sales rose 7.2%. However, international comparable sales grew just 0.9%, significantly below forecasts of 3.2%. Chief executive Brian Niccol's "Back to Starbucks" strategy has focused on improving customer service, refreshing stores, and strengthening marketing, with more than 1,700 North American cafes upgraded during the fiscal year. The company has also continued restructuring its international operations, including transitioning its China business to a joint venture model. Looking ahead, Starbucks has forecast fiscal 2027 adjusted earnings per share of $3.15–$3.25, ahead of analyst expectations, alongside North American comparable sales growth of 4%. However, its projected 1% revenue decline fell short of expectations for 1.4% growth, reflecting changes to its international business model and slower North American store expansion. Shares fell nearly 2% in after-hours trading following the announcement.