Starbucks delivered another quarter of improving sales and raised its full-year outlook, adding to signs that its turnaround effort is gaining traction. The company said Wednesday that it has now posted four straight quarters of same-store sales growth, and shares climbed as much as 9% in extended trading after the report.
For fiscal 2026, Starbucks increased its adjusted earnings per share forecast to a range of $2.55 to $2.65, up from $2.25 to $2.45 previously. It also now expects global same-store sales to rise nearly 6% and U.S. same-store sales to grow more than 6%, compared with an earlier view for at least 5% growth in both markets. CEO Brian Niccol said in a video accompanying the earnings release that the quarter marked the point when the company’s momentum became “truly measurable,” according to the report.
Results beat Wall Street estimates
For the quarter ended June 28, Starbucks reported adjusted earnings of 85 cents per share on revenue of $9.32 billion, both above analyst expectations. Net income attributable to Starbucks rose to $1.05 billion, or 91 cents per share, from $558.3 million, or 49 cents per share, a year earlier. Operating margin improved to 13.6% from 13.3%, helped in part by tariff refunds, though the company did not specify the amount. CFO Cathy Smith said the refunds received in the quarter largely offset tariffs incurred earlier in fiscal 2026.
Even though net sales slipped 1% to $9.3 billion because of the sale of a controlling stake in the China business, underlying demand improved. Same-store sales rose 7.9%, ahead of expectations, as both customer traffic and average spending increased. In North America, comparable sales climbed 8.1%, traffic rose 4.5%, and average ticket increased 3.5%. Starbucks said customers are returning to its cafes and spending more, aided by changes under Niccol’s “Back to Starbucks” strategy, which has emphasized better service, cafe renovations, and menu changes. The company also said it opened 175 net new stores during the quarter and surpassed 1,000 cafe “uplifts,” hitting its fiscal 2026 target ahead of schedule.
Outside the U.S., same-store sales increased 5.7%. Following the joint venture announced in November with Boyu Capital, about 90% of Starbucks’ international locations are now licensed, Niccol said. The company also highlighted continued growth in its Refreshers platform, which executives said brought in double-digit revenue growth in the quarter and remains an important driver of afternoon traffic.
Source: cnbc.com
