Starbucks U.S. Same-Store Sales Jump 7.7%, and Profits Follow

Starbucks posted a 7.7% increase in U.S. same-store sales for its fiscal fourth quarter, the company said Thursday, with average check up 5.2% and transactions up 2.4% — the third straight quarter of U.S. comparable sales growth at 7% or higher.

Adjusted earnings per share rose 54% to 80 cents. Revenue fell 4% to $9.1 billion, a decline driven almost entirely by the recent sale of Starbucks China rather than weak demand. Systemwide same-store sales, including international markets, rose 7.2%, marking the fourth consecutive quarter of growth.

"We're hitting on all cylinders," CEO Brian Niccol told analysts. "Back to Starbucks as a strategy has switched gears from a turnaround plan to a growth plan. I couldn't be more optimistic about where we're headed."

The company has long argued profitability would follow once it fixed top-line sales. That translation is now visible: more of each sales dollar is dropping to earnings. "More of our sales growth is translating into earnings," Niccol said. "It comes down to the fundamentals. When we execute them with excellence, we grow."

What drove the check?

Two engines lifted the ticket. First, beverages — Matcha in particular — sold heavily in the afternoons, a daypart where customers also added food to their orders. About half of the check increase came from customers simply ordering more items.

Second, merchandise. Starbucks leaned into themed collections this quarter, selling a Pink Drink Vibes line (belt bags, hair clips) and Peanuts-themed drinkware and novelties tied to the fall menu, including a glass Snoopy cup. It remains a small slice of the business, but the economics were real.

"Q4 showed its potential," Niccol said. "Both our Pink and Peanuts launches contributed to ticket growth in the quarter." More merchandise drops are planned for the current fiscal year, starting with items tied to the holiday menu launching next week.

Service improvements also played a role. New coffeehouse coach roles, added over the past year to strengthen in-store leadership, boosted execution. Loyalty followed the momentum: 90-day active Starbucks Rewards members hit a record 36 million.

Niccol took the top job more than two years ago promising to rebuild Starbucks as a "third place" between home and work. His bet was that restoring the coffeehouse atmosphere would draw all customer types — even those who grab a drink and go. Three quarters of 7%-plus U.S. comps suggest the thesis is holding.

"Our coffeehouses are coffeehouses again," he said. "Our partners are creating more moments of connection. Our brand is more visible, relevant, and loved."

What does the growth mean for the footprint?

The quarter wasn't all expansion. Starbucks closed 247 underperforming U.S. locations and expects a muted 100 openings this fiscal year. But executives framed that as a pipeline problem, not a demand problem. Niccol said the company has "good visibility" into 5,000 additional domestic units.

"We've done the market planning, we feel really good about saying we see line of sight on the 5,000 additional units," he said.

Technology is the other big bet for the coming year. Plans include AI-assisted order input at the drive-thru designed to free baristas for customer interaction, plus new staffing, scheduling and point-of-sale systems. The rationale, per Niccol, is throughput — and throughput compounds.

"If you can improve throughput, a lot of good things happen from there, both from the topline and the bottom line," he said. "The whole rationale is to give a better customer experience and also a better partner experience."

With comps compounding, loyalty at a record, and a 5,000-unit domestic pipeline on the drawing board, Starbucks enters the new fiscal year positioned to prove the growth plan can scale beyond the turnaround.