Starbucks 8-K
PositiveEarningsNew guidance
Back to Starbucks restores comp growth; China JV conversion drives FY2027 revenue guidance of ≈1% decline Y/Y.
Filed 2026-10-29 16:07 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2026 results with newly introduced FY2027 guidance. Starbucks said its “Back to Starbucks” plan supported a return to comparable sales growth and stronger earnings; the Q4 revenue decline primarily reflected the conversion of its China retail operations to a licensed joint venture. FY2027 is a 53-week year, with the extra week reflected in Q4; the company also plans to resume share repurchases in FY2027.
Key Figures
| Metric | Q4 FY2026 | FY2026 |
|---|---|---|
| Consolidated net revenue | $9.14B, -4.5% Y/Y | $37.9B, +2.0% Y/Y |
| Operating income | $992M, +257% Y/Y | $3.69B, +25.7% Y/Y |
| Non-GAAP operating income | $1.28B, +42.5% Y/Y | $4.51B, +22.2% Y/Y |
| Operating margin | 10.8%, vs 2.9% | 9.7%, vs 7.9% |
| Non-GAAP operating margin | 14.0%, vs 9.4% | 11.9%, vs 9.9% |
| Net earnings attributable to Starbucks | $677M, +409% Y/Y | $2.53B, +36.1% Y/Y |
| Diluted EPS | $0.59, +392% Y/Y | $2.21, +35.6% Y/Y |
| Non-GAAP diluted EPS | $0.80, +53.8% Y/Y | $2.72, +27.7% Y/Y |
| Operating cash flow | — | $4.99B, +5.1% Y/Y |
- Global comparable coffeehouse sales rose 7.2% in Q4, driven by a 5.2% increase in average ticket and 1.8% more transactions. North America comps rose 7.9% (ticket +5.0%, transactions +2.7%); International comps rose 0.9% as ticket growth of 3.7% was partly offset by transactions down 2.8%. For FY2026, global comps increased 6.2%, with transactions up 3.2% and ticket up 3.0%.
- Q4 North America revenue increased 6.2% to $7.33B, and operating margin was 12.3% vs 4.5%, reflecting sales leverage and lower restructuring costs. International revenue fell 36.9% to $1.31B following the China transition, while operating margin was 19.7% vs 10.8%. Channel Development revenue declined 8.9% to $494M, primarily due to lower Global Coffee Alliance revenue.
- Starbucks ended FY2026 with 41,607 coffeehouses after 617 net additions for the year, including 303 in Q4; it closed approximately 250 North America company-operated locations in September. The China divestiture converted 7,991 company-operated locations to licensed locations and produced a $536M pre-tax gain. The board declared a $0.63-per-share dividend, payable 11/27/2026 to shareholders of record 11/13/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Consolidated net revenue | FY2027, 53 weeks | Decline ≈1% Y/Y, including ≈$700M related to the 53rd week | — | Initiated |
| North America comparable coffeehouse sales growth | FY2027 vs FY2026 on a 52-week basis | ≈4.0% | — | Initiated |
| Non-GAAP consolidated operating margin | FY2027, 53 weeks | 13.5%-14.0% | — | Initiated |
| Diluted EPS, GAAP | FY2027, 53 weeks | $3.07-$3.17 | — | Initiated |
| EPS, non-GAAP | FY2027, 53 weeks | $3.15-$3.25, including slightly more than $0.10 related to the 53rd week | — | Initiated |
| Net new coffeehouses | FY2027 | ≈1,200 globally across company-operated and licensed businesses, led by International | — | Initiated |
The company said it will provide additional business-outlook information on its regularly scheduled quarterly earnings call.
Investor Takeaways
- Watch quarterly revenue and non-GAAP operating margin against FY2027 outlook; the company attributes the revenue outlook primarily to the China transition and separately identifies the 53rd-week contribution.
- North America comparable sales and global net coffeehouse additions will test whether the “Back to Starbucks” momentum and international-led expansion continue.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-29 22:49:09Z