SAN FRANCISCO, Oct. 29 (Xinhua) -- U.S. coffee giant Starbucks reported Thursday that its revenue fell 4.5 percent year on year to 9.14 billion U.S. dollars in the fourth quarter of fiscal 2026, while net income surged 408.8 percent, partly reflecting a sharp decline in restructuring and impairment costs.
According to the company's financial results for the 13-week quarter ended Sept. 27, net income attributable to Starbucks rose to 677.2 million dollars from 133.1 million dollars a year earlier. Diluted earnings per share increased to 0.59 dollars from 0.12 dollars, while non-GAAP adjusted earnings per share rose 53.8 percent to 0.8 dollars.
Operating income jumped 256.5 percent to 991.8 million dollars from 278.2 million dollars a year earlier, while operating margin expanded to 10.8 percent from 2.9 percent.
Starbucks said the decline in quarterly revenue was primarily attributable to the conversion of its retail operations in China to a licensed joint venture model.
Global comparable coffeehouse sales rose 7.2 percent, driven by a 5.2 percent increase in average ticket and a 1.8 percent rise in comparable transactions.
In North America, comparable sales increased 7.9 percent, including a 7.7 percent rise in the United States. Revenue from the North American segment grew 6 percent to 7.33 billion dollars.
The international segment recorded a 37 percent decline in revenue to 1.31 billion dollars, largely reflecting the restructuring of Starbucks' China operations. International comparable sales increased 0.9 percent.
Starbucks opened a net 303 new coffeehouses during the quarter, bringing its global store count to 41,607 at the end of September.
For the full fiscal year 2026, Starbucks reported revenue of 37.91 billion dollars, up 2 percent from the previous year. Net income attributable to the company rose 36.1 percent to 2.53 billion dollars, while diluted earnings per share increased to 2.21 dollars from 1.63 dollars.
Looking ahead, Starbucks expects revenue to decline approximately 1 percent in fiscal 2027, primarily reflecting the transition of its China operations to the licensed joint venture model.
The company projects approximately 4 percent growth in North American comparable sales and plans to open a net 1,200 new coffeehouses worldwide.
