Starbucks (NASDAQ:SBUX) Posts Earnings Results, Beats Expectations By $0.08 EPS

Starbucks (NASDAQ:SBUX) issued its earnings results on Thursday. The coffee company reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.72 by $0.08, FiscalAI reports. The business had revenue of $9.14 billion during the quarter, compared to the consensus estimate of $9.22 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%. The company’s revenue for the quarter was down 4.5% on a year-over-year basis. During the same period last year, the company earned $0.52 EPS.

Here are the key takeaways from Starbucks’ conference call:

• Fiscal 2026 results exceeded expectations: Q4 global comparable sales rose 7.2%, U.S. comparable sales increased 7.7%, operating margin expanded 450 basis points to 14%, and EPS grew approximately 54% to $0.80.
• Starbucks expects continued earnings recovery in fiscal 2027, guiding to approximately 4% North America comparable-sales growth, 13.5%–14% operating margin, and EPS of $3.15–$3.25. Management said it is ahead of schedule toward its fiscal 2028 framework, supported by sales leverage and ongoing savings from its $2 billion cost program.
• Fiscal 2027 consolidated revenue is expected to decline approximately 1%, primarily because of the transition of Starbucks China’s retail operations to a licensed joint venture, along with lower channel-development revenue and fewer North American company-operated openings.
• Management highlighted several growth opportunities, including more than 2,000 North American coffeehouse uplifts, integrated delivery in the Starbucks app, personalized digital ordering, afternoon menu and beverage platforms, and approximately 1,200 net new global coffeehouses in fiscal 2027, mainly internationally.
• Starbucks plans to return capital to shareholders through its 16th consecutive annual dividend increase to $0.63 per share and approximately $1 billion in fiscal 2027 share repurchases, while maintaining an investment-grade balance sheet.

Starbucks Stock Performance

Shares of Starbucks stock traded down $3.02 during trading hours on Friday, reaching $102.49. 3,925,323 shares of the company were exchanged, compared to its average volume of 8,093,735. Starbucks has a 1 year low of $77.99 and a 1 year high of $110.51. The stock’s fifty day moving average is $99.26 and its 200 day moving average is $99.63. The firm has a market cap of $116.84 billion, a PE ratio of 58.98, a PEG ratio of 1.57 and a beta of 0.98.

Starbucks Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be paid a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 2.5%. This is a positive change from Starbucks’s previous quarterly dividend of $0.62. The ex-dividend date is Friday, November 13th. Starbucks’s payout ratio is presently 142.53%.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: U.S. comparable sales increased 7.7%, beating expectations and management’s 6.5% target, while global comparable sales rose 7.2%. Growth was supported by stronger product mix, food purchases, pricing, and continued demand for matcha, Refreshers, and cold-foam beverages. Starbucks sales grew last quarter, and so did profits
• Positive Sentiment: Adjusted fourth-quarter EPS was $0.80, ahead of the roughly $0.72 analyst consensus and up from $0.52 a year earlier. Adjusted operating margin expanded by about 450 basis points to 14%, helped by sales leverage, cost savings, and lower labor-related comparisons. Starbucks Q4 Earnings Beat Estimates
• Positive Sentiment: Management said the “Back to Starbucks” turnaround is now becoming a growth plan and is tracking roughly a year ahead of its fiscal 2028 framework. Starbucks plans approximately 1,200 net new stores, more than 2,000 North American store upgrades, and renewed share repurchases. Starbucks posts slight revenue miss, earnings beat in Q4 results
• Positive Sentiment: Analyst support strengthened after the report. BTIG Research reaffirmed a Buy rating with a $115 target, while Bank of America raised its target to $141, citing a clearer path to earnings and margin growth through 2028. Analyst Maintains Buy on Starbucks, Lifts Price Target to $141
• Neutral Sentiment: Fiscal 2027 guidance calls for approximately 4% North American comparable-sales growth, a 13.5%-14% adjusted operating margin, and adjusted EPS of $3.15-$3.25. The 53rd week provides some EPS benefit, but the sales outlook represents a slowdown from fiscal 2026.
• Negative Sentiment: Revenue declined about 4.5% to $9.14 billion, missing the approximately $9.22 billion consensus. Much of the decline reflects Starbucks’ transition of its China operations to a licensed joint venture, but international comparable transactions still fell 2.8%. Starbucks international business disappoints but U.S. stores outperform
• Negative Sentiment: U.S. transaction growth cooled to 2.4%, while average ticket rose 5.2%, suggesting recent comparable-sales gains rely more on spending per visit than increasing customer traffic. This raises questions about the durability of the recovery as Starbucks moves from turnaround execution to sustained growth.

Insider Buying and Selling

In related news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $105.60, for a total transaction of $235,382.40. Following the completion of the transaction, the chief executive officer directly owned 73,149 shares of the company’s stock, valued at $7,724,534.40. The trade was a 2.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 6,687 shares of company stock worth $685,935. Insiders own 0.03% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. KeyCorp reiterated a “sector weight” rating on shares of Starbucks in a report on Friday. William Blair reissued an “outperform” rating on shares of Starbucks in a research report on Friday. Citigroup restated a “neutral” rating and issued a $104.00 price objective (down from $112.00) on shares of Starbucks in a report on Tuesday, October 20th. Melius Research set a $110.00 target price on shares of Starbucks in a research report on Monday, August 3rd. Finally, CICC Research upped their target price on shares of Starbucks from $95.00 to $110.00 and gave the company an “outperform” rating in a research report on Thursday, August 6th. Twenty-three investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Starbucks has an average rating of “Hold” and a consensus target price of $110.53.

About Starbucks

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.