Starbucks Corporation (NASDAQ:SBUX) reported third-quarter results that comfortably exceeded Wall Street expectations, supported by stronger customer traffic in North America and continued progress under its turnaround strategy. The coffee chain also raised its financial outlook for the full fiscal year.
Shares rose more than 6% in premarket trading on Thursday as investors welcomed the company’s improving operating performance and growing confidence in Chief Executive Brian Niccol’s “Back to Starbucks” strategy.
Comparable Sales Growth Exceeds Expectations
For the 13 weeks ended June 28, 2026, Starbucks reported global comparable store sales growth of 7.9%, outperforming analysts’ expectations of 5.73%.
The increase was driven by a 4.2% rise in comparable customer transactions and a 3.5% increase in average ticket size, indicating that higher customer traffic, rather than pricing alone, fueled sales growth.
“A robust sales performance should support the stock and keep the bull narrative, which has worked YTD, running,” Morgan Stanley analyst Brian Harbour said. “Ongoing levers remain attractive.”
North America Leads Operational Recovery
The company’s North American business delivered particularly strong results, with comparable store sales increasing 8.1% as customer visits climbed 4.5%.
Net revenue for the segment rose 7% year over year to $7.4 billion, supported by higher delivery volumes, stronger food attachment rates and continued demand for premium beverage customisation.
“Our Back to Starbucks plan was built on the belief that an extraordinary cup of coffee, human connection and customer experience win the day, every day. Our third quarter results are proof they do,” said Brian Niccol, chairman and chief executive officer.
Earnings Beat Expectations Despite Lower Reported Revenue
Consolidated net revenue totalled $9.3 billion, down 1% from a year earlier but ahead of the analyst consensus estimate of $9.12 billion.
The slight decline reflected the completion of Starbucks’ China business restructuring, which transitioned to a licensed joint venture operated alongside Boyu Capital during the quarter.
Adjusted non-GAAP operating margin expanded by 430 basis points year over year to 14.4%, benefiting from higher sales, disciplined cost management and tariff relief.
The company recovered substantially all qualifying reciprocal tariffs previously paid under the International Emergency Economic Powers Act, helping offset earlier increases in input costs.
Adjusted earnings reached $0.85 per share, well above the consensus forecast of $0.66 and 70% higher than the prior-year period.
On a GAAP basis, earnings per share were $0.91, supported in part by proceeds and tax benefits related to the China transaction.
“A big EPS beat was helped by one-time items so flow-through debate continues, with the next quarter perhaps a cleaner read than this one,” Harbour wrote.
Outlook Raised as Expansion Continues
The Channel Development segment continued to perform strongly, with revenue increasing 22% to $587.9 million, driven by growth within the Global Coffee Alliance.
Operating margin for the segment expanded by 700 basis points to 52.1%, reflecting the profitability of the company’s licensing business.
Following the stronger quarter, Starbucks raised its fiscal 2026 non-GAAP earnings guidance to between $2.55 and $2.65 per share, above Wall Street’s previous midpoint expectation of $2.39.
The company also expects U.S. comparable store sales growth to slightly exceed 6% for the full year, while global comparable sales are projected to approach the same level.
Starbucks declared a quarterly cash dividend of $0.62 per share, marking its 65th consecutive quarterly dividend payment.
During the quarter, the company opened 175 net new stores, increasing its global footprint to 41,304 company-operated and licensed locations.
For the full fiscal year, Starbucks expects to add between 600 and 650 net new stores worldwide.
Starbucks stock price
