Starbucks Tops Estimates as U.S. Comps Jump 7.7% and Adjusted EPS Reaches $0.80

Starbucks (SBUX) reported stronger-than-expected fiscal fourth-quarter results after the market close on Oct. 29. U.S. comparable store sales rose 7.7%, ahead of the company's forecast of at least 6.5%, and global comparable sales rose 7.2%, the fifth consecutive quarter of global growth. Adjusted earnings per share were $0.80, above the roughly $0.71 to $0.73 analysts expected and up from $0.52 a year earlier. The results show the "Back to Starbucks" turnaround continuing under CEO Brian Niccol.

The quarter in numbers

Adjusted EPS is up about 54% from the $0.52 earned a year ago, by our calculation. Global comparable sales growth eased from the 7.9% pace of the third quarter, but both U.S. and global figures remained well above the company's full-year targets of slightly above 6% for the U.S. and nearing 6% globally, as laid out in its third-quarter results.

What drove the beat

Starbucks credits store renovations, improved service, revamped menus, targeted marketing and strong autumn product sales for drawing customers back. Those efforts are part of the plan to reclaim the coffeehouse as a "third place" and to become, in Niccol's words, the world's greatest customer service company. The company has spent more than $500 million on larger staffing and more labor hours to support service. In the third quarter, U.S. comparable growth of 7.9% came from a 4.2% increase in transactions and a 3.6% increase in average ticket.

Restructuring and store count

Starbucks has closed about 250 underperforming North American coffeehouses, the second round of North American closures under Niccol, to strengthen the overall store base. The company still planned 600 to 650 net new coffeehouses globally in fiscal 2026 and ended the third quarter with 41,304 stores. Reported revenue is also lower than a year ago because China retail moved into a licensed joint venture with Boyu Capital that closed in April 2026, so Starbucks now records its 40% share of the venture's earnings instead of consolidating the revenue. Analysts had expected fourth-quarter revenue of about $9.2 billion, down roughly 3%, for that reason.

Where the stock stood

Shares entered the report up about 22% for the year, trading at roughly 62 times earnings, so expectations were already elevated. Management's fiscal 2026 targets going into the quarter were adjusted EPS of $2.55 to $2.65 and a non-GAAP operating margin above 11.0%.

What it means

Traffic-led growth at a company this size is the core of the turnaround case, and a fifth straight quarter of global comp growth supports it. The debate has shifted from whether customers are returning to how much profit each visit produces, given higher labor spending, restructuring costs and the China deconsolidation. Seasonal products helped this quarter, so investors will want to see whether the pace holds when promotions normalize.

Sources: Starbucks fiscal fourth-quarter 2026 results (Oct. 29) and third-quarter 2026 results (July 29). Analyst estimates and share price statistics are from market data. This is informational, not a recommendation to buy or sell.