Starbucks Beats Earnings Estimates Amid Strategic Store Closures
Starbucks exceeded fourth-quarter earnings expectations through its Back to Starbucks turnaround plan despite a revenue dip caused by restructuring operations in China.
Starbucks reported fiscal fourth-quarter adjusted earnings of 80 cents per share, surpassing analyst estimates of 72 cents. Global same-store sales grew 7.2%, supported by a 7.7% increase in U.S. comparable sales, though international growth slowed to 0.9% as store traffic declined by 2.8%.
Consolidated net revenues fell 4% to approximately $9.1 billion, missing the $9.23 billion expected by analysts. The company attributed this decrease to the transition of its China retail operations into a licensed joint venture. To offset labor investments and streamline operations, the company closed roughly 250 company-operated stores across North America.
Under the "Back to Starbucks" strategy led by CEO Brian Niccol, the company has focused on improving staffing and simplifying menus. Looking toward fiscal 2027, Starbucks forecasts a 1% decline in consolidated net revenues but plans to expand its global footprint by adding 1,200 net new coffeehouses.
