Starbucks Corporation (SBUX)

Starbucks reported on 29 October 2026 that global comparable coffeehouse sales rose 7.2 percent in its fiscal fourth quarter, which ended 27 September 1. Comparable sales count only company-operated coffeehouses open 13 months or longer 1.

Consolidated net revenues fell 4 percent to $9.1 billion, which the company tied mainly to turning its China stores into a licensed joint venture 1. Net earnings were $677.2 million, against $133.1 million a year earlier 1. Operating margin, the share of revenue left as operating profit, was 10.8 percent, up 790 basis points on lower restructuring costs and sales leverage 1.

International net revenues fell 37 percent to $1.3 billion, while North America net revenues rose 6 percent to $7.3 billion 1. Boyu Capital took a 60 percent stake in the China retail business when the deal closed on 30 March 2026, and Starbucks kept 40 percent 3.

Chairman and chief executive Brian Niccol said in the release that Back to Starbucks started as the company's turnaround plan and is now its growth plan 1. For fiscal 2027, a 53-week year, the company expects net revenues to fall about 1 percent and North America comparable sales to rise about 4.0 percent 1.

Starbucks says it has roasted and sourced specialty coffee since 1971 1. The company was formed in 1985 and its stock trades on Nasdaq under the symbol SBUX 2. It describes itself as the premier roaster, marketer and retailer of specialty coffee, operating in 89 markets in fiscal 2025 2.

In the fourth quarter of fiscal 2024, the company announced its Back to Starbucks strategy, meant to bring new and existing customers back and return the business to growth 2. Brian Niccol joined as chairman and chief executive in September 2024, after leading Chipotle Mexican Grill through a period of growth and transformation 2.

In fiscal 2024, revenue was $36.2 billion and operating margin, the share of revenue left as operating profit, was 15.0 percent 2.

Fiscal 2025 revenue rose 3 percent to $37.2 billion 2. The company credited more company-operated stores, a bigger Global Coffee Alliance with Nestlé, and the purchase of 23.5 Degrees Topco Limited, a U.K. licensed partner 2. Comparable store sales fell 1 percent, with comparable transactions down 2 percent and average ticket up 1 percent 2.

Operating income dropped to $2.9 billion from $5.4 billion, and diluted earnings per share to $1.63 from $3.31 2. The company named restructuring costs (about 240 basis points), deleverage (about 210), labor hours added for Back to Starbucks (about 130) and inflation (about 80) for the 710 basis point fall in margin 2.

In the fourth quarter of fiscal 2025 the company announced a restructuring plan to close coffeehouses and change its support organization 2. In North America, 584 coffeehouses closed late in that quarter 2.

In the first quarter of fiscal 2026, Starbucks announced a joint venture with Boyu Capital to run its China retail business, and the sale closed on 30 March 2026 3. Starbucks reported $3.1 billion in total consideration, a $536.3 million pre-tax gain, and a 40 percent stake it accounts for under the equity method 3. It said it still owns and licenses the brand to the venture 3.

Fiscal 2026 ended on 27 September with revenue of $37.9 billion, up 2 percent, and global comparable sales up 6.2 percent 1. Operating margin was 9.7 percent, 180 basis points higher 1. Net earnings were $2,526.7 million against $1,856.4 million, including the China gain 1.

How the business is organized

Starbucks reports three segments: North America (the U.S. and Canada), International, and Channel Development 2. In fiscal 2025 they made up 74, 21 and 5 percent of revenue 2. Both coffeehouse segments hold company-operated and licensed stores 2.

At the end of fiscal 2026 the company had 41,607 coffeehouses, 32 percent company-operated and 68 percent licensed 1. The U.S. held 16,781 of them 1.

North American coffeehouses

For fiscal 2026, North America net revenues were $28,897.8 million and operating income $3,454.2 million, a 12.0 percent margin 1. Comparable sales rose 6.6 percent 1.

The company says the Green Apron Service model, routines meant to give baristas more time for craft, went live across its full U.S. company-operated portfolio in the fourth quarter of fiscal 2025 2. In the U.S. and Canada, customers who register a Starbucks Card are enrolled automatically in the Starbucks Rewards program 2.

International and the China venture

International covers China, Japan, Asia Pacific, Europe, the Middle East, Africa, Latin America and the Caribbean 2. In the fourth quarter its coffeehouse count was 23,431 and operating margin 19.7 percent, up from 10.8 percent, which the company tied to the China conversion and lower restructuring costs 1.

International comparable sales rose 0.9 percent in the quarter, as a 3.7 percent rise in average ticket outran a 2.8 percent fall in transactions 1. The release gives no separate China comparable figure 1.

Channel Development: coffee outside the cafes

This segment covers whole bean and ground coffee, single-serve products, ready-to-drink drinks such as Frappuccino, and foodservice products 2. A large part runs under the Global Coffee Alliance with Nestlé, and the ready-to-drink business works with PepsiCo and Nestlé 2.

Fourth-quarter net revenues were $494.4 million, down 9 percent, mostly on lower Global Coffee Alliance revenue, while operating margin rose to 53.5 percent 1.

Plants and facilities

The annual report lists York, Pennsylvania (1,957,000 square feet) and Minden, Nevada (1,080,000) roast and distribute, and Seattle holds a 1,294,000 square foot corporate site 2. Kunshan, China has a 630,000 square foot roasting and distribution plant 2. The company owns most of its roasting plants and leases most warehouses 2.

People

Brian Niccol is chairman and chief executive, and Cathy Smith is chief financial officer 2. Brady Brewer leads Starbucks International 2. Starbucks employed about 381,000 people worldwide on 28 September 2025, and partners in about 6 percent of U.S. company-operated stores are represented by unions 2.

Rivals and current problems

The annual report names specialty coffee retailers and shops as its primary competitors, along with the quick-service restaurant sector and the ready-to-drink coffee market 2. Reuters quoted Consumer Edge analyst Michael Gunther saying Starbucks is continuing to lose younger consumers to fast-growing rivals such as 7 Brew 4.

In September 2026 the company closed about 250 company-operated North America coffeehouses that it said do not deliver the expected experience and financial performance 1. Its annual report also says new tariffs and changing coffee prices were expected to keep weighing on results 2.

The umbrella, in words

Starbucks sells under the Starbucks Coffee brand and three others: Teavana, Ethos and Starbucks Reserve 2. The annual report's subsidiary list, as of 28 September 2025, names Starbucks Coffee International, Inc. in Washington, Starbucks EMEA Holdings Ltd in the United Kingdom and SBI Nevada, Inc., and leaves out smaller subsidiaries 5.

Starbucks owns 40 percent of the China retail joint venture, which it reports under the equity method; Boyu Capital owns 60 percent 3. It agreed the Global Coffee Alliance with Nestlé for grocery and foodservice, and works with PepsiCo on ready-to-drink drinks 2.

The annual report counted approximately 16,000 shareholders of record as of 7 November 2025, not counting shares held through brokers 2.

For fiscal 2027, a 53-week year, Starbucks guided consolidated net revenues down about 1 percent, including about $700 million from the 53rd week 1. The company said the decline is mainly the move of China retail to a licensed joint venture 1.

Its other fiscal 2027 guidance is North America comparable sales growth of about 4.0 percent, a non-GAAP operating margin of 13.5 to 14.0 percent, and non-GAAP earnings per share of $3.15 to $3.25 1. It also expects about 1,200 net new coffeehouses worldwide, led by International 1. The 53rd week lands in the fourth quarter of fiscal 2027 1.

The board declared a cash dividend of $0.63 per share, payable on 27 November 2026 to holders of record on 13 November 2026 1. Chief financial officer Cathy Smith said the company plans to resume share repurchases in fiscal 2027 1. Reuters reported a $1 billion repurchase plan 4.

Reuters reported that Niccol said the coming year will focus on technology and modernization, with an AI system to help baristas take drive-through orders as one example 4. He also described systems that could recognize participating customers as they arrive and present personalized digital menus, Reuters reported 4.

The company said in its quarterly report that it expects the move to a licensed joint venture in China to keep lowering revenue and raising operating margin compared with the old company-operated model 3. It also said the joint venture is expected to bring sustainable growth to China through expansion, innovation and customer focus 3.

In the release the company said it remains confident in its long-term growth opportunity in North America 1. It also listed risks that could change its results, among them tariffs, coffee and dairy costs, competition and its reliance on North America 1.

The release says the board has declared dividends for 66 consecutive quarters 1. The webcast replay of the results call runs until the end of the day on 11 December 2026 1.

Reuters also reported that Starbucks is weighing a sale of a majority stake in its Japanese business, and that it had quashed talk of a deal to acquire Chipotle Mexican Grill 4.