Starbucks sales miss expectations, but its U.S. turnaround is gaining steam
North American comparable sales improved, while quarterly revenue still came in below expectations.
TL;DR
- Starbucks reported stronger comparable sales in North America but quarterly revenue below analyst expectations.
- Its earnings release attributed North American revenue growth to higher comparable sales, including increased transactions and average ticket.
- The company said it expects North American same-store sales to grow 4% in fiscal 2027; execution and demand remain uncertain.
Starbucks' fiscal fourth-quarter revenue fell short of forecasts even as U.S. sales remained a relative bright spot, AP reported. CNBC's coverage likewise described a sales miss alongside progress in the company's U.S. turnaround. [1] [2]
In its earnings release, Starbucks said North America segment net revenues rose 6% year over year to $7.3 billion. Comparable coffeehouse sales increased 7.9%, which the company attributed to a 5.0% rise in average ticket and a 2.7% increase in comparable transactions. [3]
The company said it expects North American same-store sales to grow 4% in fiscal 2027, compared with 6.6% in fiscal 2026. AP reported that revenue still missed expectations, indicating that stronger comparable sales did not remove all pressure on the quarter's top line. [1] [3]
Management described its turnaround plan as a source of progress, but the reported quarter does not establish that gains will persist. The future pace of customer traffic, revenue growth and margin improvement remains dependent on execution and demand. [1] [2] [3]
Why it matters
The results show a split between improving comparable sales and a revenue miss, a distinction that matters when assessing whether operational changes are broadening into sustained growth. The company's own outlook anticipates slower same-store sales growth in fiscal 2027.
Editor's note
Company figures are drawn from Starbucks' earnings release and the revenue miss is independently reported by AP. Forward guidance is attributed to the company.