Overview
- Global comparable sales rose 1% in Q4, revenue reached $9.6 billion up 5%, EPS came in at $0.52 versus the $0.56 consensus, and GAAP operating margin narrowed to 2.9%.
- U.S. performance remained muted with flat comparable sales, a 1% drop in transactions offset by a 1% ticket increase, and North America margin falling to 4.5% from 18.7% a year earlier.
- International comparable sales increased 3%, including China up 2% on 9% higher transactions and a 7% decline in average ticket due to promotions.
- Management is pressing a turnaround that includes 627 store closures, a roughly 25% menu reduction, faster service with 80% of drinks delivered in under four minutes, and plans to renovate about 1,000 stores in fiscal 2026 at lower per-store costs.
- The company will update its outlook at a January investor day, and unionized baristas at roughly 550 U.S. stores planned a vote on potential strike action.