Starbucks Beat Q4 EPS Consensus by 31% and Now Faces 250 More North American Closures

Starbucks reported fiscal fourth-quarter non-GAAP EPS of $0.85, beating the $0.65 consensus by 30.79%, and said it would close approximately 250 North American coffeehouses. The results are due Thursday, October 29, after the close, Yahoo reported. Starbucks is the Seattle-based coffee chain founded in 1971, led by chief executive Brian Niccol.

Starbucks Adds a Second Round of Closures

Global comparable sales rose 7.9% on 4.2% transaction growth, and non-GAAP operating margin expanded 430 basis points to 14.4%, helped by IEEPA tariff refunds. Management raised full-year EPS guidance to $2.55 to $2.65.

The approximately 250 North American coffeehouse closures were the second round under Niccol and came with restructuring charges and a lower fiscal 2026 net new store outlook. In October, the board raised the quarterly dividend to $0.63 from $0.62. Niccol has declared the core two-year turnaround complete.

Consensus calls for fourth-quarter normalized EPS of $0.7058 against $0.52 a year earlier, on revenue of $9.23 billion versus $9.57 billion. The lower revenue comes from moving China retail into a licensed joint venture with Boyu Capital, a deal that closed in April 2026. Boyu Capital agreed in September 2026 to acquire Xiamen Aircraft Leasing, with the deal expected to close by year-end, Investing.com reported.

Starbucks Store Count and Cost Programs

Starbucks operates over 41,000 global locations, according to akta.pro company records, including 21,514 company-operated stores and 19,476 licensed locations worldwide, with the United States representing 72.9% of net sales. The same records list a $2 billion AI-driven cost savings program, with in-house AI tools replacing Microsoft inventory-tracking and IBM maintenance management systems and rollout targeted by late 2027.

Closures and Job Cuts Before the Report

Starbucks has only one downtown Boston location left, with nearly 20 Greater Boston closures last year, and the chain's $1 billion restructuring eliminated about 900 corporate jobs, Inc. reported in October 2026. Two Starbucks stores at Seattle-Tacoma International Airport are closing due to contract expiration, with HMS Host planning layoffs and the Concourse A store closing December 31, 2026, The Seattle Times reported in October 2026. Starbucks abandoned a Chipotle merger, Seeking Alpha reported in October 2026.

Starbucks Guidance Due October 29

Management guided for U.S. comparable sales of 6.5% or better in the fourth quarter. Fiscal 2027 guidance is due with the October 29 results.