Starbucks sales fall short of expectations, but its U.S. turnaround continues to gain steam

Starbucks CEO Brian Niccol speaks during the Starbucks Investor Day event in New York City, U.S., Jan. 29, 2026. Brendan McDermid | ReutersStarbucks on Thursday reported mixed quarterly results as its international cafes underperformed expectations.However, its U.S. turnaround continues to take hold, as its home market topped expectations during the coffee giant's final quarter of fiscal 2026."We enter fiscal 2027 with momentum, a clear set of priorities and higher ambitions for what Starbucks can become," CEO Brian Niccol said in a video shared on the company's website.For fiscal 2027, Starbucks is projecting adjusted earnings per share in a range of $3.15 to $3.25, above Wall Street's expectations of earnings per share of $3.14. However, its anticipated revenue decline of 1% is weaker than expected; analysts were forecasting net sales growth of 1.4%. The outlook includes an additional week and the effects of the shift in its China business to a joint venture business model.Shares of Starbucks fell slightly in extended trading.Here's what the company reported for the quarter ended Sept. 27 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per share: 80 cents adjusted vs. 72 cents expectedRevenue: $9.14 billion vs. $9.23 billion expectedStarbucks reported fiscal fourth-quarter net income attributable to the company of $677.2 million, or 59 cents per share, up from $133.1 million, or 12 cents per share, a year earlier.Excluding restructuring and impairment costs and other items, the company reported earnings per share of 80 cents.Net revenue fell 4% to $9.14 billion, reflecting the joint venture deal in China.The company's global same-store sales increased 7.2%, fueled by growth in average ticket, and beating Wall Street estimates of 6%, according to StreetAccount. Transactions grew 1.8% in the quarter.Starbucks' U.S. cafes reported same-store sales growth of 7.7%, topping StreetAccount estimates of a 6.5% increase.Outside of North America, the company's international comparable sales ticked up 0.9%, as traffic declines offset an increase to average ticket. That growth fell short of analyst estimates of a 3.2% increase, according to StreetAccount.Starbucks opened 303 net new cafes during the quarter. In September, the company announced it would close about 1% of its North American footprint, or about 250 locations, as part of its turnaround.