Starbucks reported mixed fourth-quarter results for the quarter ended Sept. 27, according to the company's earnings report. Its international cafes fell short of expectations, while its U.S. business beat them.
U.S. same-store sales rose 7.7%, above the 6.5% increase StreetAccount estimated. Global same-store sales rose 7.2%, compared with a 6% estimate. Outside North America, international comparable sales rose 0.9%, below the 3.2% analysts expected.
Net revenue fell 4% to $9.14 billion, reflecting the joint venture deal in China. Fourth-quarter net income attributable to the company was $677.2 million, or 59 cents per share. Excluding restructuring, impairment costs and other items, earnings per share were 80 cents.
For fiscal 2027, Starbucks projects adjusted earnings per share of $3.15 to $3.25, above the $3.14 Wall Street expected. It projects revenue to decline 1%, weaker than the 1.4% growth analysts forecast. CFO Cathy Smith said the outlook includes an additional week and the China joint venture shift. Starbucks also projects North American same-store sales growth of 4% for the year.
CEO Brian Niccol said in a video that the company enters fiscal 2027 "with momentum, a clear set of priorities and higher ambitions for what Starbucks can become." He said Starbucks is ahead of schedule to meet the fiscal 2028 targets it set at its January investor day. Niccol also said brand affinity is "at near record levels."
Shares fell nearly 2% in extended trading.