Starbucks sales miss expectations, but its U.S. turnaround is gaining steam
Starbucks, the giant coffeehouse chain, posted $9.14 billion in quarterly revenue.
The short version
- International sales fell short.
- U.S. same-store sales climbed 7.7 percent.
- CEO Brian Niccol is pushing a turnaround strategy.
- The changes are winning back customers.
Why it matters to you. If you stop by for a morning brew, those packed counters and revamped seating areas show just how hard the new boss is working to fill every chair.
Starbucks, the giant coffeehouse chain, just reported mixed quarterly results as its international cafes underperformed expectations, according to CNBC. However, its U.S. turnaround continues to take hold, as its home market topped expectations during the coffee giant's final quarter of fiscal 2026.
Net revenue fell 4 percent to $9.14 billion, reflecting a joint venture deal in China. Starbucks reported fiscal fourth-quarter net income of $677.2 million, or 59 cents per share, up from $133.1 million a year earlier. CEO Brian Niccol said the company enters fiscal 2027 with momentum under his Back to Starbucks strategy.
The company's U.S. cafes reported same-store sales growth of 7.7 percent, topping Wall Street estimates. Niccol has focused on improving service, making cafes more welcoming, and sharpening marketing. The company's North American rollout of its fall menu was its strongest ever autumn launch day, and matcha is now a $1 billion drink for Starbucks.
Outside of North America, international comparable sales ticked up 0.9 percent, falling short of analyst estimates. The company also completed more than 1,700 cafe uplifts across the U.S. and Canada to make stores more welcoming. Locations that receive a makeover see higher transactions in the aftermath.
Photo: Coolcaesar, CC BY-SA 4.0
