A Starbucks logo is displayed on a sign at a Target store in Washington, July 22, 2026.
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Starbucks On Wednesday, it raised its outlook for the full year after reporting its fourth consecutive quarter of same-store sales growth.
For fiscal 2026, Starbucks now expects adjusted earnings per share in the range of $2.55 to $2.65, up from its prior guidance of $2.25 to $2.45 per share.
It now also forecasts that global same-store sales will increase nearly 6% and U.S. same-store sales will increase more than 6%; the company previously forecast global and U.S. same-store sales growth of at least 5%.
“This is the quarter where our momentum became truly measurable,” CEO Brian Niccol said in a video shared with the company’s earnings press release.
The coffee giant also reported quarterly profits and revenue that beat analysts’ expectations.
Shares of the company jumped as much as 9% in extended trading.
Here’s what the company reported for the quarter ended June 28, compared to what Wall Street expected, based on a survey of analysts by LSEG:
Earnings per share: 85 cents adjusted versus 66 cents expected Income: $9.32 billion versus $9.16 billion expectedThe coffee giant reported third-quarter net income attributable to Starbucks of $1.05 billion, or 91 cents per share, compared with $558.3 million, or 49 cents per share, a year earlier.
The company’s operating margins increased to 13.6%, up from last year’s margins of 13.3%, driven in part by fare refunds. Starbucks did not specify the exact amount of the refunds.
“The refunds we received in the third quarter more than offset the related rates incurred during the first three quarters of fiscal 2026,” Chief Financial Officer Cathy Smith said during the company’s earnings conference call.
Excluding restructuring costs and other items, Starbucks earned 85 cents per share.
Net sales fell 1% to $9.3 billion due to the company’s sale of a majority stake in its China operations. In November, Starbucks announced a joint venture with Boyu Capital, which would take over operations in the coffee chain’s second-largest market.
Although Starbucks’ overall revenue declined, its sales at stores open at least 13 months climbed 7.9%, beating Wall Street estimates of 6%, according to StreetAccount.
The coffee chain reported an increase in transactions and average check, showing that customers are returning to its cafes and spending more on their orders.
As part of Niccol’s “Return to Starbucks” strategy, the company has focused on improving service and creating more welcoming cafes in its domestic market. To do this, the chain invested in labor and the renovation of its cafes, thus gaining some investor grumbling. But the efforts appear to be paying off for Starbucks, which has seen sales plummet after losing many of its loyal customers to competitors like Dutch brothers.
Same-store sales in North America increased 8.1% in the quarter. Traffic to these restaurants jumped 4.5%. With a 3.5% increase in the average ticket, customers were also spending more on their orders, paying to modify their lattes and adding food items to their drinks.
In addition to improving its operations, Starbucks also revamped its menu, removing unpopular items and launching new drinks. Niccol said the chain would test “spritzers” – sparkling versions of its Refreshers – in select markets.
Refreshers have become a $2 billion beverage platform for Starbucks and often drive customers to its cafes in the afternoon, helping fuel business outside of the morning coffee rush. During the fiscal third quarter, Refreshers’ revenue grew by a double-digit percentage, executives said.
Outside of Starbucks’ home market, same-store sales increased 5.7%. With the creation of the Chinese joint venture, approximately 90% of the company’s international locations are now approved, according to Niccol. The Asset Light model is often more attractive to investors, who appreciate the increased long-term profits that the structure usually brings.
During the quarter, Starbucks opened 175 net new stores and exceeded 1,000 “lift” coffees, achieve its fiscal 2026 target ahead of schedule. Starbucks is now targeting at least 1,500 store renovations by the end of fiscal 2026 and is further accelerating its plans in the next fiscal year.
Cafe makeovers cost about $150,000 on average and result in increased transactions, Niccol said during the company’s earnings conference call. Changes vary depending on location, but in general, guests can expect more seating, warmer lighting, and dark woodwork.
Smith also said the company is evaluating its store footprint in North America, which could lead it to close more stores. In fiscal 2025, the company’s North American footprint decreased by 1% due to closures.
Correction: This story has been updated to correct that Starbucks’ same-store sales in North America increased 8.1%. A previous version incorrectly stated this figure.