Starbucks (SBUX-Q) beat estimates for quarterly comparable sales and raised its annual forecasts, signaling investments in faster service and improved staffing under CEO Brian Niccol’s efforts to turn around the coffee chain pulled in more customers.
The company’s shares jumped nearly 6% in extended trading on Tuesday. The stock has gained about 15% this year.
Niccol has refocused the coffee chain on in-store execution through measures like a simplified menu and shortened wait times and has paired that with the “Back to Starbucks” initiative, which includes improvements to worker compensation to boost employee retention and consistency on the floor.
The company projected fiscal 2026 adjusted profit per share to be US$2.25 to US$2.45, compared to its previous expectations of between $2.15 and $2.40.
It forecast fiscal 2026 global same-store sales to increase 5%, above its prior estimates of a 3% rise or higher.
The world’s largest coffee chain reported a 6.2% increase in global same-store sales for the second quarter, above analysts’ expectations of a 3.7% rise, according to data compiled by LSEG.
“Around the world, we’re getting leaner and moving faster. We’re holding ourselves accountable to clear standards. And clearly we are innovating with discipline. That focus is driving better execution. And, in turn, better results,” Niccol said in a statement.
Average consumer visits per Starbucks location rose 5.9% in the quarter, according to Placer.ai data.
The company’s quarterly consolidated operating margin was 9.4%, rising 120 basis points from the prior year.
Quarterly adjusted earnings per share of 50 cents beat estimates of 43 cents.
“We have more work to do,” CFO Cathy Smith said, adding that top-line improvement would be Starbucks’ first priority, with earnings growth to follow.
The company said it expects certain pressures related to import tariffs and elevated coffee prices to alleviate in the second half of the fiscal year.