Starbucks posts mixed Q3 results as CEO says turnaround plan 'is working'
Starbucks reported Q3 earnings of $0.80 per share, beating estimates, but revenue of $9.1B missed expectations. Same-store sales grew 7.2%, driven by US performance. CEO Brian Niccol highlighted the company's turnaround progress and plans for 5,000 more stores. Full-year revenue grew 2% to $37.9B, with adjusted earnings up 28% to $2.72 per share.
How this was made
The 30-second read
Why it matters
The quarter combines an EPS beat and stronger same-store sales with a revenue miss and weaker international growth, while management reiterates that the turnaround plan is working and provides a 2027 North America same-store sales expectation of roughly 4%.
Market read
Traders can update near-term positioning based on the earnings print and adjust longer-horizon expectations using the specific 2027 North America same-store sales guidance and the stated app delivery and AI search/mobile-ordering initiatives.
What to watch
The revenue miss is attributed to the Starbucks China business sale, so investors may need to separate underlying operating momentum from portfolio/accounting effects when modeling future growth.
Background
Starbucks is in an ongoing turnaround under CEO Brian Niccol, including a plan to close 250 stores in the US and Canada and reduce its store count by about 1%.
Ticker impact
Starbucks reported adjusted EPS of $0.80 (above $0.71) but revenue of $9.1B missed $9.2B, alongside 7.2% same-store sales growth and 2027 North America guidance.
Likely choppy trading as investors weigh EPS and same-store strength against the revenue miss and weaker international/transactions trends.
The article provides both upside (EPS beat, same-store growth, store-closure plan context) and downside (revenue miss, international growth below expectations, transactions down), plus a specific 2027 North America same-store sales expectation.
Market effects
Signals continued resilience in US coffee demand but ongoing pressure in international licensed markets, relevant for consumer discretionary and restaurant peers’ read-through.
US-focused momentum is emphasized, while international growth and transactions are weaker, affecting regional sentiment around branded coffee operators.
Highlights the impact of the Starbucks China business sale on reported revenue and international comps, relevant for global branded QSR investors.
Counterpoint
The same-store beat may be partly mix-driven (ticket size up) while transactions are down, implying demand quality could be less durable than the headline growth suggests.
Key entities
- companyStarbucks
Reported Q3 results with EPS and same-store sales beats, but revenue and international growth shortfalls, and guided 2027 North America same-store sales.
- personBrian Niccol
CEO who said the turnaround plan is working and discussed long-term North America expansion potential.
- personCathy Smith
CFO who guided 2027 North America same-store sales to increase by roughly 4% and commented on pricing discipline.
