Q4 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Net Revenues | $9.1 billion | down 3.9% |
| EPS | $0.80 | up approximately 54% |
| Consolidated Operating Margin | 14% | expanded 450 basis points |
| U.S. Comps | 7.7% | Not stated |
| Global Coffee Houses | 41,607 | 617 net new openings |
Guidance and outlook
- For fiscal 2027, we expect North America comps of approximately 4%.
- Consolidated operating margin of 13.5% to 14%.
- EPS of $3.15 to $3.25.
- We expect approximately 1,200 net new coffee houses globally in fiscal 2027.
- Channel Development net revenues to decline by approximately 10%.
How management sounded
Positive (+7 on our -10 to +10 scale). Management emphasized that the turnaround is complete and the company is ahead of schedule on its fiscal 2028 framework, with raised expectations for fiscal 2027. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Fiscal 2027 Comps
Asked: Brian Harbour from Morgan Stanley asked if the 4% comp guidance is an on-algo year plus benefits from closures and uplifts.
Answer: Management stated the guidance is built on the strength of business fundamentals, specifically Green Apron service, digital programs, and menu innovation, noting they are a year ahead of schedule.
Margin Evolution
Asked: Danilo Gargiulo from Bernstein asked about the puts and takes for 2027 margins and the $2 billion savings program.
Answer: Management noted margins will be more balanced throughout 2027 compared to 2026 and confirmed they have achieved over 50% of the $2 billion gross savings program, with future benefits shifting toward cost of goods sold.
U.S. Unit Growth
Asked: David Palmer from Evercore ISI asked about the ramp for U.S. unit growth and the drive-through technology tests.
Answer: Management expects 90 to 100 net new coffee houses in the U.S. for fiscal 2027 and noted that drive-through technology tests aim to improve throughput, which would benefit both top and bottom lines.
Afternoon Peak
Asked: Margaret-May Binshtok from Wolf Research asked about the priority of creating a second peak in the afternoon.
Answer: Management noted that food attach has increased in the afternoon and that new beverage platforms, including caffeine-free refreshers and tea, are driving growth in that daypart.
What to watch before the next call
- The progress of the 53rd week impact on fiscal 2027 financial results.
- The rollout of new staffing, scheduling, and point-of-sale systems throughout fiscal 2027.
- The performance of the new smaller format coffee houses and the pace of the development pipeline rebuild.
