Starbucks’ global comparable coffeehouse sales rose 7.2% in the fourth quarter, driven equally by pricing power and traffic. Average ticket increased 5.2% while comparable transactions climbed 1.8%, marking the first quarter in which both metrics moved decisively upward together. The gain came despite a 4% decline in reported consolidated net revenues to $9.1 billion, a figure depressed by the company’s conversion of its China retail operations to a licensed joint venture model in Q3.
For the full fiscal year 2026, Starbucks reported 2% revenue growth to $37.9 billion against the prior year’s 2.8% growth rate. Comparable coffeehouse sales expanded 6.2% for the year, with transactions up 3.2% and average ticket up 3.0%. The company raised its non-GAAP operating margin 200 basis points to 11.9% for the full year, compared to the filed FY2025 operating margin of 7.9%. Non-GAAP earnings per share grew 28% to $2.72 for the year, or 27% on a constant currency basis. The company introduced fiscal 2027 guidance but did not disclose specific targets in this release.
What it means
The quarter’s comp sales strength rests on two distinct drivers. North America, which comprises 40% of the global portfolio, posted 7.9% comparable sales growth with transactions up 2.7% and ticket up 5.0%. That transaction gain suggests the “Back to Starbucks” turnaround plan is moving traffic, not merely extracting more revenue per visit. International comparable sales, by contrast, grew only 0.9%, with transactions declining 2.8% even as average ticket rose 3.7%, indicating pricing is masking traffic weakness outside North America.
The operating margin expansion tells a different story. Non-GAAP operating margin climbed 450 basis points in Q4 to 14.0%, and the full-year 200 basis point expansion to 11.9% outpaced the 200 basis point revenue growth rate. The company attributes this to “sales leverage” and “lower restructuring costs.” The China divestiture contributed materially: the International segment’s operating margin jumped 890 basis points to 19.7%, driven by the shift from company-operated stores to higher-margin licensed royalty revenue. Strip out that one-time structural change, and the underlying margin expansion from operations appears more modest. The company closed 250 North America stores in Q4 as part of restructuring, yet still grew that segment’s operating margin 780 basis points to 12.3%, suggesting the portfolio rationalization is working.
The open question is whether transaction growth in North America persists or reflects a comparison quarter effect. Q4 FY25 saw North America transactions decline 0.6%, making the 2.7% gain this quarter partly a rebound from a weak prior-year base. Full-year transaction growth of 3.2% globally is solid, but the International decline of 2.8% in Q4 signals that traffic gains may be concentrated in a single geography rather than systemic.
What to watch
Starbucks will disclose fiscal 2027 guidance in detail at its investor conference or in a subsequent filing. The company stated it “intends to build on that progress” and plans to resume share repurchases, signaling confidence in durability. The next quarterly earnings release will show whether Q1 FY27 comp sales sustain the 7.2% pace or normalize, and whether international transactions stabilize or continue to erode.
Source: the company’s 8-K filed 2026-10-29 with the SEC.
For the standing yardsticks on Starbucks: the price tag, the filed record, and the four gauges, refreshed with each edition, see the BullScope Evidence Sheet: Starbucks.
