Starbucks reported mixed fourth-quarter results for the quarter ended Sept. 27, with its international cafes falling short of expectations while its U.S. business beat them.
U.S. same-store sales rose 7.7%, topping the 6.5% increase StreetAccount estimated. Global same-store sales rose 7.2%, above Wall Street's 6% estimate, with transactions up 1.8%. Net revenue fell 4% to $9.14 billion, reflecting the joint venture deal in China.
Outside North America, international comparable sales rose 0.9%, below the 3.2% analysts expected, according to StreetAccount. Starbucks reported fiscal fourth-quarter net income attributable to the company of $677.2 million, or 59 cents per share. Excluding restructuring, impairment and other items, earnings per share were 80 cents.
For fiscal 2027, Starbucks projects adjusted earnings per share of $3.15 to $3.25, compared with Wall Street's expectation of $3.14. It projects a 1% revenue decline, weaker than analysts' forecast of 1.4% net sales growth. The company expects North American same-store sales growth of 4%. CFO Cathy Smith said the outlook includes an additional week and the China joint venture, and that slight coffee price deflation and slower net new North American cafe openings will weigh on full-year revenue.
CEO Brian Niccol said Starbucks is ahead of schedule to meet the fiscal 2028 targets it laid out at its January investor day. Shares fell nearly 2% in extended trading.