Starbucks stock: Strong comps offset China revenue drag

Starbucks Corporation reported stronger operating momentum in its fiscal fourth quarter ended September 27, 2026, although the transition of its China retail business to a licensed joint venture reduced reported revenue. The company disclosed the results in its Starbucks investor release on Thursday, October 29.

Comparable sales sustain the recovery

Global comparable coffeehouse sales increased 7.2 percent, marking the fifth consecutive quarter of growth. North America comparable sales rose 7.9 percent, with transactions up 2.7 percent and average ticket up 5.0 percent. U.S. comparable sales increased 7.7 percent.

Quarterly net revenue fell 4.5 percent to 9.14 billion US dollars. Starbucks attributed the decline mainly to the conversion of its China retail operations to a licensed joint venture model, which lowered company-operated revenue in the consolidated accounts. Non-GAAP earnings per share rose 54 percent to 0.80 US dollars, while GAAP diluted earnings per share increased to 0.59 US dollars from 0.12 US dollars.

Margin progress meets China headwind

North America revenue increased 6.2 percent to 7.33 billion US dollars, and segment operating income rose to 898.4 million US dollars from 308.5 million US dollars. The segment margin expanded to 12.3 percent from 4.5 percent. Consolidated non-GAAP operating margin reached 14.0 percent, compared with 9.5 percent a year earlier.

The reported quarter also included a 536.3 million US dollar pretax gain from the divestiture of Starbucks' China retail operations during fiscal 2026. That item was excluded from the company's non-GAAP measures and is relevant when assessing the quality of reported earnings.

Fiscal 2027 sets the next test

Starbucks expects consolidated net revenue to decline by approximately 1 percent in fiscal 2027, partly because of the China transition and the comparison with company-operated China revenue in the first half of fiscal 2026. Management expects North America comparable-sales growth of approximately 4.0 percent, a non-GAAP operating margin of 13.5 percent to 14.0 percent and non-GAAP earnings per share of 3.15 to 3.25 US dollars.

Starbucks stock traded at 91.94 euros on Lang & Schwarz at 17:31 CET on Friday, October 30, 2026. That was 3.85 percent below the 95.62 euros quoted in the latest report at 12:09 CET on the same day, a separate comparison from the Xetra daily close.

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