Starbucks stock gains as Q4 margins widen despite China revenue drag

Starbucks reported stronger comparable sales and profitability for the fiscal fourth quarter ended September 27, 2026, while the transition of its China business to a licensed joint venture reduced consolidated revenue. The company said in its October 29 financial release that its Back to Starbucks plan supported a fifth consecutive quarter of global comparable-sales growth.

Sales momentum meets China pressure

Global comparable coffeehouse sales rose 7.2 percent in the quarter. North America increased 7.9 percent, supported by a 2.7 percent rise in comparable transactions and a 5.0 percent increase in average ticket. U.S. comparable sales climbed 7.7 percent, while international comparable sales grew 0.9 percent as higher tickets only partly offset weaker transactions.

Consolidated revenue fell 4.5 percent to 9.14 billion US dollars. Starbucks attributed the decline primarily to the conversion of its China retail operations from company-operated stores to a licensed joint venture, which removed much of the retail revenue from consolidation. International revenue declined 36.9 percent to 1.31 billion US dollars, but segment operating income rose to 256.9 million US dollars and its margin widened to 19.7 percent.

Margins widen as costs ease

Consolidated GAAP operating margin increased to 10.8 percent from 2.9 percent a year earlier, helped by lower restructuring costs and sales leverage. Non-GAAP operating margin reached 14.0 percent, while non-GAAP earnings per share rose 54 percent to 0.80 US dollars. The reported figures include the effects of restructuring and the China transaction; Starbucks separately presents adjusted measures for operating comparisons.

For fiscal 2027, management expects consolidated revenue to decline by approximately 1 percent, including approximately 700 million US dollars from a 53rd week and the China business-model change. The company targets North America comparable-sales growth of approximately 4.0 percent, a non-GAAP operating margin of 13.5 to 14.0 percent, non-GAAP earnings per share of 3.15 to 3.25 US dollars and approximately 1,200 net new coffeehouses.

Stock trades above prior Xetra close

Starbucks stock traded at 97.78 euros on Lang & Schwarz at 17:14 CET on Monday, November 9, 2026, 3.41 percent above the Xetra close of Friday, November 6, 2026. The Borse Frankfurt quote page lists the prior Xetra close at 94.56 euros.

The broader S&P 500 market provides the main benchmark for Starbucks shares.

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