Starbucks reported mixed results for the fourth quarter of fiscal 2026 as it continues its turnaround efforts. The company’s U.S. stores posted stronger-than-expected comparable sales growth of 7.7%, outperforming analyst estimates, while international markets fell short with only a 0.9% increase. CEO Brian Niccol highlighted the momentum heading into fiscal 2027, emphasizing a clear strategic focus and confidence in surpassing fiscal 2028 goals ahead of schedule.

The company beat earnings per share expectations, reporting 80 cents adjusted versus the anticipated 72 cents, and posted quarterly net income of $677.2 million compared to $133.1 million a year prior. However, revenue came in at $9.14 billion, below the expected $9.23 billion, partly due to the new joint venture model in China that has shifted part of its business to licensed operators. Starbucks also noted that coffee price deflation and slower pace of new North American store openings will weigh on revenue growth.

Starbucks’ “Back to Starbucks” initiative has been key to the U.S. turnaround by enhancing customer experience through service improvements, cafe upgrades, and marketing efforts including their strongest fall menu launch ever. The pumpkin spice latte and matcha, which is now a $1 billion product, illustrate the brand’s effective focus on innovation and customer engagement. More than 1,700 North American stores have received makeovers to create more welcoming environments, driving transaction growth.

Despite setbacks internationally, including transition challenges in China and interest in selling a majority stake in its Japan business, Starbucks remains focused on profitable growth. The company opened 303 net new cafes in the quarter but announced plans to close about 250 underperforming North American locations. For fiscal 2027, Starbucks projects adjusted EPS between $3.15 and $3.25 and expects modest North American same-store sales growth of 4%, showing confidence in the ongoing U.S. recovery as it balances global growth pressures.