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Starbucks on Wednesday raised its full-year outlook after reporting its fourth straight quarter of same-store sales growth.
For fiscal 2026, Starbucks now expects adjusted earnings per share in a range of $2.55 to $2.65, up from its prior outlook of $2.25 to $2.45 per share.
It now also projects global same-store sales will rise nearly 6% and U.S. same-store sales will climb more than 6%; the company was previously forecasting global and U.S. same-store sales growth of at least 5%.
"This was the quarter 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 earnings and revenue that topped analysts' expectations.
Here's what the company reported for the quarter ended June 28 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
The coffee giant reported fiscal 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, a year earlier.
The company's operating margins expanded to 13.6%, up from the year-ago period margins of 13.3%, thanks in part to tariff refunds . Starbucks did not say exactly how much it received in refunds.
"The refunds we received in Q3 largely offset related tariffs incurred in the first three quarters of fiscal 2026," CFO Cathy Smith said on the company's earnings conference call.
Excluding restructuring costs and other items, Starbucks earned 85 cents per share.
Net sales dropped 1% to $9.3 billion due to the company's sale of a controlling stake in its China business. In November, Starbucks announced it was forming a joint venture with Boyu Capital, which would take over operations in the coffee chain's second-largest market.
Although Starbucks' overall revenue fell, its sales at stores open at least 13 months climbed 7.9%, topping Wall Street estimates of 6%, according to StreetAccount.
The coffee chain reported increases in both transactions and average check, showing that customers are returning to its cafes and spending more on their orders.
Under Niccol's "Back to Starbucks" strategy, the company has focused on improving service and making cafes more welcoming in its home market. To do so, the chain has invested in labor and renovations to its coffee houses, earning some grumbling from investors . But the efforts seem to be paying off for Starbucks, which had seen its sales slump as it lost many of its loyal customers to competitors like Dutch Bros.
The company's North American same-store sales increased 8.1% in the quarter. Traffic to those restaurants jumped 4.5%. With a 3.5% increase in average ticket, customers were also spending more on their orders, paying to modify their lattes and adding food items alongside their drinks.
In addition to improving its operations, Starbucks has also retooled its menu, cutting unpopular items and launching new drinks. Niccol said the chain would test "spritzers" — sparkling versions of its Refreshers — in select markets.
Refreshers have grown to become a $2 billion drink platform for Starbucks and often drive customers to its cafes during the afternoon, helping fuel business outside of the morning coffee rush. In the fiscal third quarter, revenue from Refreshers climbed by a double-digit percentage, executives said.
Outside of Starbucks' home market, same-store sales rose 5.7%. With the formation of the China joint venture, roughly 90% of the company's international locations are now licensed, according to Niccol. The asset-light model is often more attractive to investors, who like the long-term lift to earnings the structure usually brings.
During the quarter, Starbucks opened 175 net new stores and surpassed 1,000 cafe "uplifts," reaching its fiscal 2026 goal ahead of schedule. Starbucks is now targeting at least 1,500 store renovations by the end of fiscal 2026 and accelerating its plans further in the next fiscal year.
The cafe makeovers cost roughly $150,000 on average and result in higher transactions, Niccol said on the company's earnings conference call. The changes vary based on location, but generally customers can expect more seating, warmer lighting and dark wood paneling.
Smith also said that the company is assessing its North American store footprint, which could result in it shuttering more stores. In fiscal 2025, the company's North America footprint shrank by 1% due to closures.
Correction: This story was updated to correct that Starbucks' North American same-store sales rose 8.1%. A previous version misstated the figure.
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