Starbucks beats Q4 profit estimates; sees FY sales drop on China operations transition

Starbucks

29/10/2026 20:18

Overview
Coffeehouse chain's fiscal Q4 revenue fell 4%, missing analyst expectations
Adjusted EPS for fiscal Q4 rose 54%, beating analyst expectations
Company closed about 250 North America stores in Q4 as part of restructuring

Outlook
Starbucks sees FY27 consolidated net revenues declining about 1% y/y, including 53rd week, due to transition of China's retail operations 
Company expects FY27 North America comparable coffeehouse sales growth of about 4%
Starbucks forecasts FY27 non-GAAP EPS of $3.15 to $3.25, including over $0.10 from the 53rd week

Result Drivers
CHINA TRANSACTION - Co said Q4 revenue decline was primarily due to conversion of Starbucks retail operations in China to a licensed joint venture model
HIGHER AVERAGE TICKET - Co said Q4 global comparable coffeehouse sales rose 7.2%, mainly due to a 5.2% increase in average ticket
LOWER RESTRUCTURING COSTS - Co said Q4 operating margin expanded mainly due to lower restructuring costs and sales leverage

Company press release: ID:nBwb1FZzHa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$9.10 bln
$9.23 bln (23 Analysts)
Q4 Adjusted EPS
Beat
$0.80
$0.72 (24 Analysts)
Q4 EPS
 
$0.59
 
Q4 Adjusted Operating Margin
 
14.00%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 15 "strong buy" or "buy", 20 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy."
Wall Street's median 12-month price target for Starbucks Corp is $110.50, about 7.1% above its October 28 closing price of $103.20
The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 36 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)