starbucks on Wednesday raised its full-year outlook after reporting same-store sales growth for the fourth consecutive quarter.
Starbucks now expects adjusted earnings per share in the range of $2.55 to $2.65 for fiscal 2026, up from its previous guidance of $2.25 to $2.45 per share.
The company also now expects global same-store sales to increase by nearly 6% and U.S. same-store sales to increase by more than 6%. The company previously expected global and U.S. same-store sales to increase at least 5%.
“This quarter was the quarter where our momentum was truly measurable,” CEO Brian Nicol said in a video shared with the company’s earnings press release.
The coffee giant also reported quarterly profit and revenue that beat analysts’ expectations.
The company’s stock price rose as much as 9% in after-hours trading.
Here’s how the company reported for the quarter ended June 28 compared to Wall Street expectations, based on a survey of analysts by LSEG.
Earnings per share: 85 cents adjusted, 66 cents expected Revenue: $9.32 billion, $9.16 billion expected
The coffee giant reported third-quarter net income attributable to Starbucks of $1.05 billion, or 91 cents per share, up from $558.3 million, or 49 cents per share, in the year-ago period.
Thanks in part to the tax refund, the company’s operating profit margin expanded to 13.6% from 13.3% in the same period last year. Starbucks hasn’t disclosed exactly how much money it received as a refund.
“The refunds we received in the third quarter largely offset the related duties incurred in the first three quarters of fiscal 2026,” Chief Financial Officer Kathy Smith said on the earnings call.
Excluding restructuring charges and other items, Starbucks earned 85 cents per share.
Net sales fell 1% to $9.3 billion as the company sold control of its China operations. Starbucks announced in November that it would form a joint venture with Boyu Capital that would take over the coffee chain’s second-largest market operations.
Although Starbucks’ overall revenue fell, sales at stores open at least 13 months rose 7.9%, beating Wall Street’s 6% estimate, according to Street Accounts.
The coffee chain reported an increase in both transaction value and average check, indicating customers are returning to its cafes and spending more on their orders.
Under Nicol’s “Back to Starbucks” strategy, the company has focused on improving service and making cafes more welcoming in the domestic market. To that end, the chain is investing in labor costs and renovating its coffeehouses, prompting complaints from investors. But for Starbucks, the effort appears to be paying off. Starbucks had lost many of its loyal customers to competitors and sales were slumping. dutch brothers
The company’s North American same-store sales increased 8.1% in the quarter. Visits to these restaurants increased by 4.5%. With the average number of tickets increasing by 3.5%, customers are also spending more on their orders, paying more for latte changes and adding food with their drinks.
In addition to improving its operations, Starbucks has also revamped its menu, cutting down on unpopular items and introducing new drinks. Nicol said the chain will test a “spritzer” (a sparkling version of a refresher) in some markets.
Refresher has grown into a $2 billion drinks platform for Starbucks, often taking customers to cafes in the afternoon and helping to drive business beyond the morning coffee rush. In the fiscal third quarter, revenue from Refresher grew at a double-digit percentage, executives said.
Outside of Starbucks’ home market, same-store sales increased 5.7%. Nicol said that with the establishment of the Chinese joint venture, about 90% of the company’s overseas locations have been licensed. Asset-light models are often more attractive to investors who prefer the long-term return enhancement that the structure provides.
During the quarter, Starbucks opened 175 net new stores and exceeded 1,000 “Uplift” cafes, reaching its fiscal year 2026 goal ahead of schedule. Starbucks currently aims to renovate at least 1,500 stores by the end of fiscal 2026, and is accelerating its plans next year.
Mr. Nicol said on the company’s earnings call that cafe renovations cost an average of about $150,000 and result in increased transaction volume. Changes will vary by location, but customers can generally expect more seating, warmer lighting, and dark wood paneling.
Smith also said the company is evaluating its North American store footprint, which could result in more store closures. In fiscal 2025, the company’s North American footprint decreased by 1% due to closures.
Correction: This article has been updated to correct that Starbucks’ North American same-store sales increased 8.1%. This number was incorrectly listed in previous versions.
