Starbucks beats Q2 estimates, raises 2026 guidance
Starbucks shares ticked up as much as 6% in premarket trading on Wednesday after the coffee chain raised its full-year outlook and reported its second consecutive quarter of traffic growth.
CEO Brian Niccol, who joined from Chipotle in a high-profile deal in 2024, commented that the latest quarter “marked the turn in our turnaround as our Back to Starbucks plan drove both top- and bottom-line growth.”
During his tenure, Niccol has focused on addressing a range of customer complaints to improve the chain’s performance, from long waits to a lack of seating. And in its first positive quarter of same-store sales since the start of 2024, same-store sales jumped 7.1% in North American stores and 2.6% internationally for the quarter that ended March 29, driven by higher customer traffic, per the company’s press release. In North America, that blew past consensus expectations for 4% growth.
For the fiscal full year, Starbucks now expects its global and US same-store sales to increase by at least 5%, up from its previous guidance of 3% growth. The company also hiked its adjusted earnings-per-share outlook to a range of $2.25 to $2.45 from $2.15 to $2.40 per share. Niccol also noted that while higher gas prices have yet to change the behavior of Starbucks customers, the higher full-year guidance came with caution about the uncertainty and inflationary consequences of the war.
For the fiscal full year, Starbucks now expects its global and US same-store sales to increase by at least 5%, up from its previous guidance of 3% growth. The company also hiked its adjusted earnings-per-share outlook to a range of $2.25 to $2.45 from $2.15 to $2.40 per share. Niccol also noted that while higher gas prices have yet to change the behavior of Starbucks customers, the higher full-year guidance came with caution about the uncertainty and inflationary consequences of the war.
