SBUX · Earnings call · 2026Q3T · Full report

Operating Margin Drivers

STARBUCKS CORP · 2026-10-29 · Importance 52 · Surprise 56

Q4 consolidated operating margin expanded 450 basis points year over year to approximately 14%, with improvement across every segment. North America operating margin expanded 440 basis points to approximately 16%, principally from sales leverage, disciplined execution, and cost savings; lapping Green Apron Service labor investment also helped. Higher product and distribution costs, mainly from product mix, partially offset those benefits, while coffee-price impacts were roughly neutral in Q4. Fiscal 2027 consolidated operating margin is expected to be 13.5%–14%, approximately 190 basis points higher at the midpoint, supported by sales leverage and cost savings.

Key facts

• Starbucks reported five consecutive quarters of positive comparable sales and three consecutive quarters of margin expansion.
• Starbucks says strong top-line performance gives it the ability to expand the bottom line, and that it demonstrated this as it closed fiscal year 2026.
• Q4 FY2026 consolidated operating margin expanded 450 basis points year over year to 14%.
• FY2026 consolidated operating margin expanded 200 basis points to 11.9%.
• North America operating margin expanded 440 basis points to approximately 16% in Q4.