Starbucks grows 7.9 percent and still reports falling revenue

Starbucks achieved growth in comparable store sales of 7.9 percent in the third quarter of financial year 2026. Consolidated revenue fell one percent to 9.3 billion dollars over the same period.

That contradiction has a single cause. In March 2026 the group transferred its roughly 7,991 stores in China into a joint venture with Boyu Capital, in which it still holds 40 percent. Sales there no longer appear in its own accounts, only the licence income.

The decline therefore describes a change in structure and not weaker demand.

The figures were published on 29 July. Reported earnings per share were 91 cents, and adjusted earnings 85 cents. Net profit reached 1.05 billion dollars. The share rose to a new high for the past twelve months.

The short version

• Comparable store sales rose 7.9 percent in the third quarter of financial year 2026, while consolidated revenue fell one percent to 9.3 billion dollars.
• The contradiction is explained by the transfer of roughly 7,991 stores in China into a joint venture in March 2026.
• Adjusted earnings per share for financial year 2026 are to be 2.55 to 2.65 dollars, after 2.25 to 2.45 dollars previously.

More customers, not just higher prices

The most important part of the growth concerns its composition. Of the 7.9 percent, 4.2 percentage points came from more orders and 3.5 percentage points from a higher average ticket.

That split is decisive for the judgement. An increase that comes mainly from price rises eventually hits a limit. If it comes from more visits, it describes a real recovery in demand.

In North America comparable sales rose 8.1 percent, and in the United States 7.9 percent. As reasons the group names higher delivery sales as well as more add on sales in food and drink customisation.

It was the fourth quarter in a row with positive growth in comparable sales and the second with a rising margin.

Margins develop differently

Operating profit in North America rose 9.8 percent to 1.01 billion dollars. The margin there improved slightly from 13.3 to 13.6 percent.

As drivers the group names scale effects, lower inflation and tariff refunds. Working against that were higher restructuring costs, investment in staff and an unfavourable product mix.

In the international business revenue fell 34.2 percent to 1.32 billion dollars, but the margin rose from 13.6 to 19.1 percent. That too goes back to the change in China. Licence arrangements tie up less capital and produce higher margins on lower revenue.

The channel development division grew 22 percent to 587.9 million dollars at a margin of 52.1 percent.

Guidance raised clearly

The group lifted its outlook noticeably. Adjusted earnings per share for financial year 2026 are to be 2.55 to 2.65 dollars, after 2.25 to 2.45 dollars previously.

On comparable sales a little over six percent is now expected in the United States and just under six percent worldwide. Previously at least five percent had been set in each case.

The operating margin for the full year is to be above eleven percent. The plan of 600 to 650 net new stores stands.

The store refit is being accelerated

Chief executive Brian Niccol described the quarter as the point at which the company own momentum became measurable.

The group wants to refit at least 1,500 stores by the end of financial year 2026 and to raise the pace further in 2027. For growth in company operated locations in North America, management expects restraint into financial year 2027, because weak sites are being reviewed first.

Around 90 percent of the international estate now runs through licence models. Part of the proceeds from the China business was used to buy back company bonds worth around 1.3 billion dollars.

Japan is now the largest company operated market outside the United States.

Frequently asked questions

Why does revenue fall while store sales rise

In March 2026 the group transferred its roughly 7,991 stores in China into a joint venture with Boyu Capital, in which it still holds 40 percent. Sales there no longer appear in its own accounts, only the licence income.

Does the growth come from prices or from visits

Of the 7.9 percent, 4.2 percentage points came from more orders and 3.5 percentage points from a higher average ticket. If the increase comes mainly from more visits, it describes a real recovery in demand.

How many stores are being refitted

The group wants to refit at least 1,500 stores by the end of financial year 2026 and to raise the pace further in 2027. The plan of 600 to 650 net new stores stands.

This analysis is for information only and is not investment advice.