Starbucks has reported mixed quarterly results, with stronger-than-expected performance in the US offset by weaker international sales and a revenue outlook below analysts’ forecasts.
The coffee chain said adjusted earnings reached 80 cents per share for the quarter ended September 27, compared with expectations of 72 cents. Revenue was $9.14 billion, below the $9.23 billion forecast.
Starbucks’ net income attributable to the company rose to $677.2 million, or 59 cents per share, from $133.1 million, or 12 cents per share, a year earlier. Net revenue fell 4%, reflecting the shift in its China business to a joint venture model.
The company’s global comparable sales increased by 7.2%, ahead of the 6% expected by analysts. The rise was driven by a higher average customer spend, while transactions grew by 1.8%.
US cafes were the strongest part of the results, reporting same-store sales growth of 7.7%, compared with an expected increase of 6.5%. The figures indicate that chief executive Brian Niccol’s turnaround efforts are continuing to gain traction in Starbucks’ home market.
International comparable sales, excluding North America, rose by just 0.9%. A decline in customer traffic offset higher average spending, leaving the result well short of the 3.2% increase analysts had forecast.
Starbucks forecasts earnings growth but weaker revenue
For fiscal 2027, Starbucks forecast adjusted earnings per share of between $3.15 and $3.25. That range is above analysts’ expectation of $3.14 per share.
However, the company expects revenue to decline by 1%, while analysts had forecast growth of 1.4%. The outlook includes an additional week in the financial year and the impact of moving to a joint venture model for its China business.
“We enter fiscal 2027 with momentum, a clear set of priorities and higher ambitions for what Starbucks can become,” Mr Niccol said in a video shared on the company’s website.
Starbucks opened 303 net new cafes during the quarter. It announced in September that it would close about 1% of its North American estate, equivalent to roughly 250 locations, as part of its turnaround plan.
Shares in Starbucks fell slightly in extended trading following the results.
