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Starbucks Returns to Comp Growth as Revenue Beats, Profit Hit by Restructuring

Restructuring charges plus higher staffing costs kept earnings below forecasts despite early signs the turnaround is gaining traction.

Overview

  • Global same-store sales rose 1% in the fiscal fourth quarter, the first increase in nearly two years, with U.S. comps flat for the quarter but positive in September.
  • Quarterly revenue reached about $9.6 billion, up roughly 5% year over year and ahead of estimates, while adjusted earnings of $0.52 missed expectations.
  • GAAP net income fell to approximately $133.1 million, or $0.12 per share, reflecting large one-time items tied to the overhaul.
  • The restructuring closed 627 stores and eliminated roughly 900 non‑retail roles, as ongoing investments in staffing, technology, and remodels weighed on margins.
  • International markets led the improvement with comps up 3%; in China, comps rose 2% on 9% higher traffic as the company explores strategic options for the business valued by the CEO at more than $10 billion.