Starbucks misses revenue target despite strong U.S. drink sales

For the millions of Americans who buy a morning coffee, the daily routine remained unchanged, but the financial picture behind it shifted. Starbucks reported that its fiscal fourth quarter, covering July through September, saw global same-store sales rise by 7.2%. This outperformed the 6% growth predicted by Wall Street analysts polled by FactSet. The strength came primarily from the United States, where same-store sales surged 7.7%.

The company attributed this domestic success to broad-based demand across different age groups and income levels. Sales increased at various times of the day, driven by popular fall beverages and the growing popularity of matcha. Starbucks noted that matcha has become a $1 billion platform, with much of the consumption occurring in the afternoon, which helps drive traffic to stores.

This performance follows a period of aggressive restructuring under Chairman and CEO Brian Niccol, who joined the company in 2024. In September 2025, Starbucks closed 627 stores in North America and Europe. The company announced in late September that it would immediately close another 250 North American locations to focus on its most profitable shops.

Despite the strong U.S. showing, Starbucks' international results lagged. International same-store sales increased by less than 1%, and international store traffic declined by 2.8%. This weakness in overseas markets contributed to a 4% drop in net revenue for the quarter, bringing total income to $9.14 billion. This figure fell short of the $9.2 billion forecast by analysts. The company cited lower contributions from China as a primary reason, following a joint venture finalized in the spring where Chinese investment firm Boyu Capital now operates stores in China while Starbucks retains a 40% interest.

Looking ahead to the 2027 fiscal year, Starbucks expects net revenue to decrease by 1%, largely due to the China business. This projection is lower than the 1% revenue increase Wall Street had anticipated. For the same period, the company projects North American same-store sales will grow by 4%, a slowdown from the 6.6% growth seen in the 2026 fiscal year.

After adjusting for one-time items such as restructuring costs, Starbucks reported an earnings of 80 cents per share. This exceeded the 72 cents per share forecast by analysts. Following the announcement, Starbucks shares dropped nearly 2% in after-hours trading on Thursday.