Overview
- Starbucks reported adjusted earnings of $0.80 per share and consolidated net revenue of about $9.1 billion in its fiscal fourth quarter, with the company saying revenue fell mainly because it converted China retail operations to a licensed joint venture.
- The company closed roughly 250 North American stores in the quarter, including about 212 in the United States, leaving it with 16,781 U.S. coffeehouses and 41,607 stores globally.
- Starbucks expects approximately $300 million in restructuring charges tied to the closures as it executes the 'Back to Starbucks' plan to concentrate traffic in stronger locations.
- CEO Brian Niccol said the turnaround has shifted into a growth phase and projected about 90–100 net new North American stores in fiscal 2027 and a target north of 300 U.S. openings in fiscal 2028, and management publicly denied takeover speculation involving Chipotle.
- Investors have warmed to the strategy this year with the stock up roughly 23–24% year-to-date, though shares slipped about 2% in early trading after the earnings release; the store cull is intended to lift same-store sales and margins as the company prepares to scale openings again.