Starbucks on Tuesday raised its full-year outlook for comparable-store sales growth after reporting its second straight quarter of traffic growth.
“This quarter marked a milestone for Starbucks — and a turning point for us,” CEO Brian Niccol said in a video posted alongside second-quarter fiscal results.
For fiscal 2026, Starbucks said same-store sales worldwide and in the US are now expected to rise at least 5%, up from a previous forecast of a 3% increase. Starbucks also raised its forecast for adjusted earnings per share to $2.25 to $2.45 from its previous range of $2.15 to $2.40 per share.
Alarmed by the ongoing war between the US and Iran and its effects on oil, several companies have chosen to raise their outlook for the year when they report their quarterly results in recent weeks, making Starbucks stand out.
Niccol said higher gas prices haven’t changed Starbucks’ customer behavior yet, though he acknowledged that even the company’s increased forecasts are cautious – compared to its strong performance this quarter.
Shares of Starbucks rose nearly 5% in extended trading.
Here’s what the company reported for the period ended March 29 compared to Wall Street’s expectations, based on a survey of analysts by LSEG:
- Earnings per share: 50 cents adjusted versus 43 cents expected
- Revenue: $9.53 billion vs. $9.16 billion expected
Starbucks reported second-quarter earnings for the company of $510.9 million, or 45 cents per share, up from $384.2 million, or 34 cents per share, a year earlier.
Excluding restructuring and impairment charges and other items, the company earned 50 cents per share, beating Wall Street expectations.
The company said net sales rose about 9% to $9.53 billion.
Global same-store sales for Starbucks, which includes only cafes open at least a year, rose 6.2%, driven by more visits to its locations. Wall Street was projecting same-store sales growth of 4%, according to StreetAccount estimates.
The company continued to see same-store sales growth in April, Niccol said on the company’s earnings conference call.
North America, the company’s home market, drove same-store sales growth for the quarter. US same-store sales rose 7.1%, driven by a 4.3% jump in transactions.
It marks the second straight quarter of traffic growth for Starbucks’ US cafes, indicating that the company’s turnaround is taking hold.
Under Niccol, the chain has cut back on discounts and instead focused on bringing customers back by improving the cafe’s operations, adding quirky new menu items and relocating seats.
“We haven’t seen the commercial potential for years,” Niccol said during a phone call from the company.
Starbucks’ U.S. sales growth came from its entire menu, from its new baked goods to the growing popularity of cold protein shakes, said CFO Cathy Smith.
Outside the US, growth was strong. International same-store sales rose 2.6%.
China, the company’s second-largest market, weighed on its results, with same-store sales growing by 0.5%. Starbucks relied on more discounts in China to drive more visits, which led to 2.1% higher traffic but a 1.6% drop in average spending.
Boyu Capital closed its deal for a majority stake in Starbucks’ China business early in the fiscal third quarter, Smith said on the call. Another asset management firm now has a 60% interest in a joint venture with Starbucks in the region.
Going forward, Starbucks does not plan to share independent China profits and same-store sales as it is now considered part of the company’s licensed portfolio, it said.
