Starbucks: US Sales Beat Expectations Despite Global Revenue Miss
Domestic same-store sales rose 7.7%, but total quarterly revenue dropped 4% to $9.14 billion as international traffic declined.
By Giulia Donovan ·
Starbucks missed revenue forecasts for its fourth fiscal quarter as international performance lagged, even as strong demand in the United States drove record growth in domestic sales.
The company reported global same-store sales rose 7.2% for the July through September period. This figure exceeded the 6% increase predicted by analysts polled by FactSet. In the U.S. alone, same-store sales jumped 7.7%. Management attributed this growth to broad-based demand across different age groups, income levels, and times of day. The company noted that popular fall beverages and the expansion of its matcha menu helped boost afternoon traffic. Starbucks described matcha as a platform now generating one billion dollars in revenue.
Brian Niccol, the chairman and CEO who joined the company in 2024, continues to streamline the store footprint. In late September, Starbucks announced the immediate closure of 250 North American stores. This move followed a larger round of closures in September 2025, when the company shut down 627 locations across North America and Europe. These actions aim to focus resources on the most profitable shops.
International results presented a sharper contrast. Same-store sales in these regions rose by less than 1%. International store traffic declined by 2.8%. Net revenue for the quarter fell 4% to $9.14 billion, falling short of the $9.2 billion analysts had projected. The company cited lower contributions from China as a primary factor. Starbucks finalized a joint venture in the spring, granting Chinese investment firm Boyu Capital operations control of stores in China while Starbucks retains a 40% interest.
Looking ahead, Starbucks expects net revenue to decline by 1% in its fiscal year 2027. This projection is lower than the 1% increase Wall Street had forecast. The company anticipates that North American same-store sales will grow by 4% next year. This is a slowdown from the 6.6% growth recorded in the current fiscal year.
After adjusting for one-time items such as restructuring costs, Starbucks reported earnings of 80 cents per share. This figure exceeded the 72 cents per share that analysts had expected.
Shares of Starbucks dropped nearly 2% in after-hours trading on Thursday.
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