In brief
Starbucks’ fourth‑quarter revenue slipped 4.5 % YoY to $9.14 billion while net income surged 408.8 % to $677.2 million, driven by a sharp drop in restructuring and impairment charges. The revenue loss is largely attributed to the conversion of its China retail operations to a licensed joint‑venture model, while global comparable sales rose 7.2 %. The company projects a modest 1 % revenue decline for fiscal 2027 and plans to add 1,200 new coffeehouses worldwide.
Starbucks Ltd. announced on Tuesday that its fourth‑quarter revenue fell 4.5 % year‑over‑year to $9.14 billion while net income surged 408.8 % to $677.2 million, according to a release cited by Xinhua.
The surge in profit is partly attributable to a sharp decline in restructuring and impairment costs, which the company said contracted sharply in the 13‑week quarter ended September 27.
Revenue decline was largely driven by the company’s decision to convert its China retail operations into a licensed joint‑venture model, a move that Xinhua notes reduces direct sales during the transition period. Despite the drop in overall sales, global comparable coffeehouse sales climbed 7.2 %, driven by a 5.2 % rise in average ticket size and a 1.8 % increase in comparable transactions.
In North America, comparable sales increased 7.9 %, including a 7.7 % rise in the United States. The international segment saw a 37 % decline in revenue to $1.31 billion, largely reflecting the restructuring of China operations, while international comparable sales edged up 0.9 %.
Starbucks opened 303 new coffeehouses during the quarter, bringing its global store count to 41,607. The company projects revenue to decline approximately 1 % in fiscal 2027, primarily as a result of the China transition, but expects a 4 % growth in North‑American comparable sales and plans to open a net 1,200 new coffeehouses worldwide.
