What's Going On with Starbucks Shares Friday?
Starbucks Corporation (NASDAQ:SBUX) shares are up about 1.4% Friday after the company reported mixed fiscal fourth-quarter results Thursday after the market closed.
- Starbucks stock is trading at elevated levels. What’s the outlook for SBUX shares?
Starbucks Beats on Earnings per Share but Misses on Revenue
Starbucks reported fiscal fourth-quarter adjusted earnings per share of 80 cents, beating the consensus estimate of 72 cents. It reported revenue of $9.14 billion, missing the consensus estimate of $9.23 billion. GAAP earnings per share were 59 cents, up from 12 cents a year earlier. Global comparable store sales rose 7.2%, with average ticket up 5.2% and comparable transactions up 1.8%. North America comparable sales rose 7.9%, and international comparable sales rose 0.9%. Starbucks opened 303 net new stores and ended the quarter with 41,607 locations, and it held about $3.68 billion in cash and cash equivalents.
"We had a terrific quarter and a great year driven by our focus on the fundamentals," said Brian Niccol, Starbucks’ chairman and CEO. "Back to Starbucks started as our turnaround plan. Now, it’s our growth plan."
Revenue Fell 4% as China JV Transition Masked Comparable Sales Growth
Consolidated net revenue fell 4% from a year earlier even as comparable sales rose. Starbucks said the decline primarily reflects the conversion of its China retail operations to a licensed joint venture, under which Boyu Capital operates the stores and Starbucks keeps a 40% interest. The change removed China’s company-operated store revenue, and international segment revenue fell 37% to $1.3 billion as a result.
Starbucks Sees Fiscal 2027 Revenue Down 1%, Adjusted EPS of $3.15-$3.25
Starbucks expects consolidated net revenue to decline about 1% in fiscal 2027, a year with an extra week worth about $700 million of revenue, with the decline driven mainly by the China change. It expects North American comparable sales growth of about 4%. It sees adjusted earnings per share of $3.15 to $3.25, versus the consensus estimate of $3.14. Starbucks’ board declared a dividend of 63 cents per share, payable Nov. 27 to holders of record on Nov. 13.
Starbucks Shares Trade Flat
SBUX Price Action: At the time of publication, Starbucks shares are trading 1.41% higher at $107.00, according to data from Benzinga Pro.
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