"Back to Starbucks" Plan Drives Strong Business Momentum in Fiscal Year 2026

Global Q4 Comparable Coffeehouse Sales Up 7.2%

Q4 Consolidated Net Revenues Down 4% to $9.1 billion, Reflecting the Starbucks China Transaction

Q4 GAAP Operating Margin 10.8%, Up 790 Basis Points; Non-GAAP Operating Margin 14.0%, Up 450 Basis Points

Q4 GAAP EPS $0.59, Up 392%; Non-GAAP EPS $0.80, Up 54%

Company Introduces Fiscal Year 2027 Guidance

SEATTLE--(BUSINESS WIRE)--Starbucks Corporation (Nasdaq: SBUX) today reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended September 27, 2026. GAAP results in fiscal 2026 and fiscal 2025 include items that are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.

Q4 Fiscal Year 2026 Highlights

• Global comparable coffeehouse sales increased 7.2%, primarily driven by a 5.2% increase in average ticket and a 1.8% increase in comparable transactions
  • North America comparable coffeehouse sales increased 7.9%, primarily driven by a 5.0% increase in average ticket and a 2.7% increase in comparable transactions; U.S. comparable coffeehouse sales increased 7.7%, primarily driven by a 5.2% increase in average ticket and a 2.4% increase in comparable transactions
  • International comparable coffeehouse sales increased 0.9%, primarily driven by a 3.7% increase in average ticket, partially offset by a 2.8% decline in comparable transactions
• The company opened 303 net new coffeehouses in Q4, ending the period with 41,607 coffeehouses: 32% company-operated and 68% licensed
  • At the end of Q4, coffeehouses in the U.S. comprised 40% of the company’s global portfolio, ending the period with 16,781 coffeehouses
• Consolidated net revenues decreased 4% to $9.1 billion, including on a constant currency basis, primarily driven by the conversion of Starbucks retail operations in China to a licensed joint venture model
• GAAP operating margin expanded 790 basis points year-over-year to 10.8%, primarily driven by lower restructuring costs and sales leverage
  • Non-GAAP operating margin expanded 460 basis points year-over-year to 14.0%, or 450 basis points on a constant currency basis
• Effective tax rate of 27.1% compared to 18.8% in the prior year, with the increase primarily due to the proportionate impact of certain permanent differences and discrete items in relation to higher pre-tax earnings, and the divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026
  • Non-GAAP effective tax rate increased 100 basis points to 24.7%
• GAAP earnings per share of $0.59 increased 392% over prior year
  • Non-GAAP earnings per share of $0.80 expanded 54% over prior year, including on a constant currency basis

Full Fiscal Year 2026 Highlights

• Global comparable coffeehouse sales increased 6.2%, primarily driven by a 3.2% increase in comparable transactions and a 3.0% increase in average ticket
  • North America comparable coffeehouse sales increased 6.6%, primarily driven by a 3.6% increase in comparable transactions and a 3.0% increase in average ticket; U.S. comparable coffeehouse sales increased 6.5%, primarily driven by a 3.4% increase in comparable transactions and a 3.0% increase in average ticket
  • International comparable coffeehouse sales increased 3.7%, primarily driven by a 2.0% increase in average ticket and a 1.6% increase in comparable transactions
• Consolidated net revenues increased 2% to $37.9 billion, including on a constant currency basis
• GAAP operating margin expanded 180 basis points year-over-year to 9.7%, primarily driven by sales leverage, partially offset by labor investments largely in support of “Back to Starbucks”
  • Non-GAAP operating margin expanded 200 basis points year-over-year to 11.9%, including on a constant currency basis
• The divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026 resulted in a pre-tax gain of $536.3 million
• Effective tax rate of 34.2% compared to 25.9% in the prior year. The increase was primarily due to the discrete impact of changes in indefinite reinvestment assertions as a result of classifying our Starbucks retail operations in China as held for sale in the first quarter of fiscal 2026, impacts resulting from the divestiture of Starbucks retail operations in China in the third quarter of fiscal 2026, and lapping the discrete impact of a tax status change for a certain foreign entity in the first quarter of fiscal 2025.
  • Non-GAAP effective tax rate decreased 90 basis points to 24.8%
• GAAP earnings per share of $2.21 increased 36% over prior year
  • Non-GAAP earnings per share of $2.72 increased 28% over prior year, or 27% on a constant currency basis

“We had a terrific quarter and a great year driven by our focus on the fundamentals and what has always set Starbucks apart: exceptional coffee, a moment of connection and a world-class customer experience. This gives me confidence our performance is durable,” commented Brian Niccol, chairman and chief executive officer. “Back to Starbucks started as our turnaround plan. Now, it's our growth plan.”

“In fiscal 2026, we returned to comp growth, expanded margin and delivered stronger earnings, and we intend to build on that progress in fiscal 2027,” commented Cathy Smith, chief financial officer. “Our recently increased dividend and plans to resume share repurchases in fiscal 2027 underscore our confidence and disciplined focus on driving sustainable long-term value.”

Q4 North America Segment Results

Net revenues for the North America segment increased 6% over Q4 FY25 to $7.3 billion in Q4 FY26, primarily driven by an increase in company-operated coffeehouse revenue due to a 7.9% increase in comparable coffeehouse sales, driven by a 5.0% increase in average ticket, primarily due to strength in product mix and customer food attach, pricing and higher delivery sales, and a 2.7% increase in comparable transactions.

Operating income increased to $898.4 million in Q4 FY26 compared to $308.5 million in Q4 FY25. Operating margin of 12.3% expanded from 4.5% in the prior year, primarily driven by lower restructuring costs and sales leverage.

Q4 International Segment Results

Net revenues for the International segment decreased 37% over Q4 FY25 to $1.3 billion in Q4 FY26, primarily driven by the conversion of Starbucks retail operations in China to our licensed joint venture model in the third quarter of fiscal 2026 which drove lower company-operated coffeehouse revenues and largely contributed to higher product sales to, and royalty revenue from, our licensees.

Operating income increased to $256.9 million in Q4 FY26 compared to $223.2 million in Q4 FY25. Operating margin of 19.7% expanded from 10.8% in the prior year, primarily driven by the conversion of Starbucks retail operations in China to our licensed joint venture model in the third quarter of fiscal 2026 and lower restructuring costs.

Q4 Channel Development Segment Results

Net revenues for the Channel Development segment decreased 9% over Q4 FY25 to $494.4 million in Q4 FY26, primarily due to a decrease in revenue in the Global Coffee Alliance.

Operating income decreased to $264.3 million in Q4 FY26 compared to $265.2 million in Q4 FY25. Operating margin of 53.5% expanded from 48.9% in the prior year, primarily driven by mix shifts and higher income from the North American Coffee Partnership joint venture relative to segment revenue.

Company Updates

1. As part of its efforts to strengthen its coffeehouse portfolio under its "Back to Starbucks" strategy, the company further assessed its existing North America store portfolio and in September 2026, closed approximately 250 company-operated North America coffeehouses that do not deliver the coffeehouse experience and financial performance expected of the brand. The company remains confident in its long term growth opportunity in North America.
2. The Board declared a cash dividend of $0.63 per share, payable on November 27, 2026 to shareholders of record on November 13, 2026. The company had 66 consecutive quarters of dividend payouts with CAGR of 16.6% over that time period, demonstrating the company's commitment to consistent value creation for shareholders.

Fiscal Year 2027 Guidance

The company introduces the following fiscal 2027 guidance for the full year. Please note that Starbucks fiscal year 2027 is a 53-week year instead of the usual 52-week year. The impact of the 53rd week will be reflected in our results for the fourth quarter of fiscal 2027. All full-year guidance for the metrics noted below is for fiscal year 2027 on a 53-week basis except comparable coffeehouse sales growth metrics, which are relative to fiscal year 2026 on a 52-week basis.

• Consolidated net revenues to decline by approximately 1% year over year, including approximately $700 million related to the 53rd week. The year-over-year decrease is primarily due to the transition of Starbucks China's retail operations to a licensed joint venture model;
• North America comparable coffeehouse sales growth of approximately 4.0%;
• Non-GAAP consolidated operating margin of 13.5% to 14.0%;
• Non-GAAP earnings per share of $3.15 to $3.25, including slightly more than ten cents related to the 53rd week; and
• Approximately 1,200 net new coffeehouses globally across company-operated and licensed businesses, led by International.

Please refer to the section entitled "Non-GAAP Disclosure" and the reconciliation of GAAP measures to non-GAAP measures at the end of this release. Certain projected non-GAAP financial measures cannot be reconciled to the most comparable GAAP measure without unreasonable effort.

Year-over-year comparisons within guidance reflect the retail operations of Starbucks China reported as a company-operated business for the first half of fiscal year 2026.

The company will provide additional information regarding its business outlook during its regularly scheduled quarterly earnings conference call.

Conference Call

Starbucks will hold a conference call today at 1:15 p.m. Pacific Time, which will be hosted by Brian Niccol, chairman and ceo, and Cathy Smith, cfo. The call will be webcast and can be accessed at http://investor.starbucks.com. A replay of the webcast will be available until end of day Friday, December 11, 2026.

The company uses its website as a tool to disclose important information about the company and comply with its disclosure obligations under Regulation Fair Disclosure.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to responsibly sourcing and roasting high-quality arabica coffee. Today, with a global footprint of more than 41,000 company-operated and licensed coffeehouses and a growing presence in consumer-packaged goods, we are the world's premier purveyor of specialty coffee. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our coffeehouses or online at about.starbucks.com or www.starbucks.com.

Forward-Looking Statements

Certain statements contained herein and in our investor conference call related to these results and progress towards our “Back to Starbucks” plan are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and in other filings with the SEC, as well as, among others:

• our ability to preserve, grow, and leverage our brands;
• the impact of our brand, marketing, promotional, advertising and pricing strategies, platforms, reformulations, innovations, or customer experience initiatives or investments;
• the costs and risks associated with, and the successful and timely execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, transformation efforts, and plans, including our “Back to Starbucks” strategy and our restructuring plans;
• the costs and risks associated with, and the successful execution and effects of, strategic changes to our ownership and operating structure, including as a result of acquisitions, divestitures, other strategic transactions or entry into joint ventures, including our joint venture with respect to Starbucks retail operations in China;
• our ability to align our investment efforts with our strategic goals;
• evolving consumer preferences, demand, consumption, or spending behavior, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes;
• the ability of our business partners, suppliers, and third-party providers to fulfill their responsibilities and commitments and our reliance on certain key business partners and suppliers;
• the potential negative effects of food or beverage-safety incidents or product recalls, including any perceived association of our products or brands with such incidents;
• our ability to open new coffeehouses and efficiently maintain the attractiveness of our existing coffeehouses and manage related costs;
• our heavy reliance on the financial performance of our North America operating segment and our dependence on the performance and growth of certain international markets;
• our ability to operate and successfully expand our footprint in international markets, which is influenced by factors distinct from our North America operating segment;
• inherent risks of operating a global business, including changing conditions in our markets, local factors affecting coffeehouse openings, protectionist trade or foreign investment policies, including trade restrictions, tariffs, quotas, import/export regulations, customs restrictions, sanctions, countersanctions, and retaliatory measures; compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages;
• higher costs, lower quality, or unavailability of coffee, dairy, cocoa, energy, water, raw materials, packaging, or product ingredients and related volatility;
• the ability of our supply chain to meet current or future business needs and our ability to scale and improve our forecasting, planning, production, and logistics management;
• the potential impact on our supply chain and operations of adverse weather conditions, natural disasters, or significant increases in logistics costs;
• a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers;
• the impact of unfavorable macroeconomic conditions and other factors, including economic slowdowns or recessions, rising real estate costs, supply chain disruptions, climate change and extreme weather events, inflation and interest rate fluctuations, government shutdowns, labor unrest, geopolitical instability, disruptions in credit markets and foreign currency exchange rate volatility;
• failure to meet market expectations for our financial performance or any announced guidance and the impact thereof;
• failure to attract or retain key executive or partner talent;
• changes in the availability and cost of labor, including any union organizing efforts and our responses to such efforts;
• the impact of, and our ability to respond to, substantial competition from new entrants, consolidations by competitors, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods); marketing; category expansion; product introductions; or entry or expansion in our geographic markets;
• evolving corporate governance and public disclosure regulations and expectations, including with respect to sustainability matters;
• the potential impact of activist shareholder actions or tactics;
• failure to comply with applicable laws and complex and changing legal and regulatory requirements, including those governing privacy, data protection, artificial intelligence, and other emerging technologies;
• the impact or likelihood of significant legal disputes and proceedings or government investigations;
• the unauthorized access, use, theft, or destruction of our data, or of our proprietary or confidential information, including as a result of increasingly sophisticated threats enabled or accelerated by artificial intelligence, and the impact thereof;
• potential negative effects of, and our ability to respond to, a material failure, inadequacy, or interruption of our information technology systems or digital platforms, or those of our third-party business partners or service providers, or failure to comply with data protection laws; and
• our ability to adequately protect our intellectual property or adequately ensure that we are not infringing the intellectual property of others.

In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment, and new risks periodically emerge. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.

Key Metrics

We believe the company's financial results and long-term growth model will continue to be driven by new coffeehouse openings, comparable coffeehouse sales growth and operating margin management. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies.

Segment Results (in millions)

North America

International

Channel Development

Corporate and Other