Starbucks U.S. Stores Beat, International Lags in Q4

Starbucks on Thursday reported mixed quarterly results for Q4 fiscal 2026, with U.S. stores outperforming expectations and international markets falling short.

By Career Ahead AI · Global — AI-assisted, fact-verified against cited sources. Readers should verify key facts.

U.S. Stores Outperform

Starbucks reported adjusted earnings per share of 80 cents for the quarter ended Sept. 27, compared with 72 cents expected. Revenue came in at $9.1 billion, versus $9.23 billion expected. Net revenue fell 4% to $9.1 billion, reflecting the shift in its China business to a joint venture business model.^¹²

The company's global same-store sales increased 7.2%, fueled by growth in average ticket, and beating Wall Street estimates of 6%, according to StreetAccount. Transactions grew 1.8% in the quarter. Starbucks' U.S. cafes reported same-store sales growth of 7.7%, topping StreetAccount estimates of a 6.5% increase.^¹²

Starbucks opened 303 net new cafes during the quarter. In September, the company announced it would close about 1% of its North American footprint, or about 250 locations, as part of its turnaround.^¹²

The company's global same-store sales increased 7.2%, fueled by growth in average ticket, and beating Wall Street estimates of 6%, according to StreetAccount.

International Markets Fall Short

Outside of North America, the company's international comparable sales ticked up 0.9%, as traffic declines offset an increase to average ticket. That growth fell short of analyst estimates of a 3.2% increase, according to StreetAccount.^¹²

The international division is a nearly $8-billion-a-year business that is growing more quickly, rising 10% in the most recent quarter. The international division represents about 21% of Starbucks' total business.^¹²

CEO Cites Momentum and Ambitions

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Starbucks CEO Brian Niccol said the company enters fiscal 2027 with momentum, a clear set of priorities and higher ambitions for what Starbucks can become. Niccol told Wall Street analysts at the investor day that this global scale and reach make Starbucks the clear market-share leader in a growing away-from-home coffee category and the most widely accessed premium coffee brand in the world.^¹²

Starbucks International CEO Brady Brewer, who has been at Starbucks since 2001 and served as its international head since 2024 after a stint as marketing chief, said the company has graduated beyond just being a U.S. brand quite some time ago to becoming a global one.^¹²

Starbucks International CEO Brady Brewer, who has been at Starbucks since 2001 and served as its international head since 2024 after a stint as marketing chief, said the company has graduated beyond just being a U.S.

Expansion Plans and Localization

Starbucks' long-term goal is to ultimately double its presence outside North America to some 40,000 stores. Brewer thinks perhaps half of these 20,000 additional locations will be in China, where Starbucks struck a deal last fall with local partner Boyu Capital to oversee its expansion after some stumbles.^¹²

On a trip to India during Diwali last autumn, Brewer tried a saffron tiramisu, as well as a spicy sandwich with chicken tikka at one of the American coffee-shop giant's local stores. Brewer said that saffron tiramisu was beautiful and tasted amazing, and he wondered why the company wasn't offering it everywhere in the world.^¹²

Brewer said local cultures expect their food to be local and something familiar, but for coffee, they expect it to be the global product. In its annual report in November, the company noted rising anti-American sentiment in certain markets as a risk factor.^¹²

Localization skills matter in global expansion

Starbucks' international growth depends on adapting food to local tastes while keeping coffee global, as its international CEO discovered with saffron tiramisu and chicken tikka in India. If you work in product development, marketing, or operations for a consumer brand expanding abroad, the ability to design and test localized offerings becomes a concrete, valuable skill. This is not generic advice: the company's international comparable sales grew only 0.9% versus 7.7% in the U.S., showing that localization execution directly affects performance. Build expertise in regional consumer preferences and menu adaptation to position yourself for roles in international business units.^¹²

The company's plan to double its presence outside North America to 40,000 stores, with half of the new locations in China, signals sustained hiring in international operations, supply chain, and partnership management. However, the annual report's warning about rising anti-American sentiment in certain markets means roles in those regions carry geopolitical risk. If you consider a career in international expansion, weigh the opportunity against the possibility of market volatility. Also note the shift of China business to a joint venture model, which suggests that experience with partnership structures and local capital deals is increasingly relevant for senior roles.^¹²

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If you work in product development, marketing, or operations for a consumer brand expanding abroad, the ability to design and test localized offerings becomes a concrete, valuable skill.