Starbucks Earnings: US Sales Beat Expectations Despite Revenue Miss

Starbucks reported financial results for its fiscal fourth quarter on Wednesday, revealing a mixed performance driven by strong domestic demand and weaker international growth. While the company missed overall revenue targets, its core U.S. business outperformed Wall Street projections.

Global same-store sales increased by 7.2% during the July to September period. This figure surpassed the 6% growth rate anticipated by analysts polled by FactSet. The primary driver of this performance was the U.S. market, where same-store sales rose by 7.7%. Company officials stated that this growth was broad-based, attracting customers from various age and income demographics throughout the day. Seasonal factors, including popular fall beverages and the expansion of matcha drinks, contributed to higher afternoon traffic.

Starbucks continues to streamline its store network to prioritize profitability. In late September, the company announced the immediate closure of 250 locations in North America. This action marks the second major round of store closures under Chairman and CEO Brian Niccol, who assumed leadership in 2024. A previous round in September 2025 resulted in the closing of 627 stores across North America and Europe.

International operations presented a contrasting picture. Same-store sales in these regions rose by less than 1% in the fourth quarter. Starbucks also noted a 2.8% decline in international store traffic. These weaker international results contributed to a 4% drop in net revenue for the quarter, totaling $9.14 billion. This amount was below the $9.2 billion forecast by analysts. The company attributed the revenue shortfall primarily to reduced contributions from China, where it finalized a joint venture with investment firm Boyu Capital in the spring. Under this agreement, Boyu Capital operates the stores while Starbucks retains a 40% interest.

Looking ahead, Starbucks expects net revenue to decrease by 1% in its 2027 fiscal year. This projection is driven mainly by the China business and is lower than the 1% increase Wall Street had forecast. For North America, the company projects same-store sales growth of 4% for the coming year, a slowdown from the 6.6% increase seen in fiscal 2026.

On a per-share basis, the company outperformed expectations. Adjusted for one-time items such as restructuring costs, Starbucks earned 80 cents per share. This figure exceeded the 72 cents analysts had predicted. Despite the stronger earnings per share, investors reacted to the revenue miss. Starbucks shares fell nearly 2% in after-hours trading on Thursday.