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That was largely due to strong demand in the U.S., where
same-store sales jumped 7.7%. Starbucks said sales growth was
broad-based, coming from different age and income levels and at
different times of the day. Popular fall drinks drew customers,
and Starbucks said matcha has grown into a $1 billion platform
that is primarily enjoyed in the afternoon, which is also
boosting traffic.
Starbucks has also been working to winnow its U.S. stores to
focus on those that are the most profitable. Starbucks announced
in late September that it was immediately closing 250 North
American stores. It was the second big round of store closures
under Chairman and CEO Brian Niccol, who joined the company in
2024. In September 2025, Starbucks closed 627 stores in North
America and Europe.
But international same-store sales rose less than 1% in the
fourth quarter, and Starbucks noted a 2.8% decline in
international store traffic.
Net revenue fell 4% for the quarter to $9.14 billion. That was
lower than the $9.2 billion analysts were forecasting. Starbucks
said that was due to lower contributions from China, where it
finalized a joint venture in the spring. Under that joint
venture, Chinese investment firm Boyu Capital operates Starbucks
stores in China and Starbucks retains a 40% interest.
Starbucks said it also expects its net revenue to fall 1% in its
2027 fiscal year, due mostly to its China business. That is
lower than the 1% revenue increase Wall Street was forecasting.
It expects North American same-store sales to grow 4% for the
year, compared with 6.6% in its 2026 fiscal year.
Adjusted for one-time items, including restructuring costs,
Starbucks earned 80 cents per share, which was better than the
72 cents analysts forecast.
Starbucks shares fell almost 2% in after-hours trading Thursday.
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