Starbucks: net profit and sales lower than expected in the third quarter due to China

The American coffee giant Starbucks announced on Thursday a turnover and net profit lower than market expectations in the fourth quarter of its delayed 2026 financial year, and anticipates a decline in sales in the next due in part to its reorganization in China. Turnover fell, according to a press release, by 4.5% year-on-year in the fourth quarter to $9.14 billion, compared to a consensus of $9.22 billion. Starbucks, in the midst of a strategic restructuring after several years of financial difficulties, justifies this decline by the change in status in the third quarter of its stores in China - its second largest market with around 8,000 stores.

They are now grouped in a joint venture with the Hong Kong investment company Boyu Capital, which paid $4 billion for a 60% stake. This generated a pre-tax gain of 536.3 million for the American group. But, for an equivalent number of stores, sales in the fourth quarter increased by 7.2%, the group said, highlighting an increase in the average ticket (+5.2%) and the number of transactions (+1.8%).

Over the quarter, in net terms, it opened 303 new stores. At the end of September, he announced new closures of cafes, whose performance was considered insufficient, in North America. “About 250 cafes” closed in the following days, resulting in charges of around $300 million.

Anticipated decline At the end of September, the group had 41,607 stores worldwide, 32% of which were directly owned and 68% franchised. Net profit stood at $677.2 million compared to $133.1 million the previous year when it was reduced by a charge of $755 million (restructuring costs and asset depreciation).

But the Factset consensus was for $823 million. Excluding exceptional items, net earnings per share (EPS) stood at 80 cents (+54% over one year) for a consensus of 72 cents. “We had a great quarter and a great year, driven by our focus on the fundamentals that have always made the difference for Starbucks (...

) This gives me confidence that our performance is sustainable,” commented Brian Niccol, boss of the group, quoted in the press release. However, the company anticipates a decline of around 1% in its turnover in 2027 due to a calendar effect and the reorganization in China, it justified, forecasting the net opening of around 1,200 cafes worldwide.

Its EPS on a comparable basis should be between $3.15 and $3.25 ($2.72 in 2026, +28% over one year). In electronic trading after the New York Stock Exchange closed, Starbucks shares fell 1.82%.

Machine-translated from French