Starbucks Reports Margin Expansion Amid Slowing U.S. Transaction Growth
Starbucks (SBUX) reported a significant jump in operating margins for its fiscal fourth quarter, with non-GAAP margins rising to 14% from 9.4%. However, the growth was primarily driven by higher average ticket prices rather than increased foot traffic. While U.S. comparable coffeehouse sales rose 7.7%, the increase was fueled by a 5.2% rise in average ticket size, which more than doubled the rate of visit growth. Looking ahead to fiscal 2027, management provided guidance that suggests a shift toward margin preservation over aggressive top-line expansion. The company expects North American comparable sales growth to moderate to approximately 4%. While earnings per share are projected to rise due to widening margins, investors remain cautious regarding the slowing momentum in global comparable transactions and the impact of ongoing store restructuring.
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Topics: comparable sales fiscal guidance operating margin revenue growth