SAN FRANCISCO, Oct 30 (Bernama-Xinhua) — US coffee giant Starbucks reported Thursday that its revenue fell 4.5 per cent year on year to US$9.14 billion in the fourth quarter of fiscal 2026, while net income surged 408.8 per cent, partly reflecting a sharp decline in restructuring and impairment costs, reported Xinhua.
According to the company’s financial results for the 13-week quarter ended Sept. 27, net income attributable to Starbucks rose to US$677.2 million from US$133.1 million a year earlier. Diluted earnings per share increased to US$0.59 from US$0.12, while non-GAAP adjusted earnings per share rose 53.8 per cent to US$0.8.
Operating income jumped 256.5 per cent to US$991.8 million from US$278.2 million a year earlier, while operating margin expanded to 10.8 per cent from 2.9 per cent.
Starbucks said the decline in quarterly revenue was primarily attributable to the conversion of its retail operations in China to a licensed joint venture model.
Global comparable coffeehouse sales rose 7.2 per cent, driven by a 5.2 per cent increase in average ticket and a 1.8 per cent rise in comparable transactions.
In North America, comparable sales increased 7.9 per cent, including a 7.7 per cent rise in the United States. Revenue from the North American segment grew 6 per cent to US$7.33 billion.
The international segment recorded a 37 per cent decline in revenue to US$1.31 billion, largely reflecting the restructuring of Starbucks’ China operations. International comparable sales increased 0.9 per cent.
Starbucks opened a net 303 new coffeehouses during the quarter, bringing its global store count to 41,607 at the end of September.
For the full fiscal year 2026, Starbucks reported revenue of US$37.91 billion, up 2 per cent from the previous year. Net income attributable to the company rose 36.1 per cent to US$2.53 billion, while diluted earnings per share increased to US$2.21 from US$1.63.
Looking ahead, Starbucks expects revenue to decline approximately 1 per cent in fiscal 2027, primarily reflecting the transition of its China operations to the licensed joint venture model.
The company projects approximately 4 per cent growth in North American comparable sales and plans to open a net 1,200 new coffeehouses worldwide.
–BERNAMA-XINHUA