Starbucks 3Q Same-Store Sales Rise as Turnaround Plan Gains Steam
By Kelly Cloonan
Starbucks logged higher same-store sales in its latest quarter, as consumers made more purchases at the coffee chain and at a higher average ticket.
Chief Executive Brian Niccol said the results are proof that the company's turnaround efforts are resonating.
The coffee chain on Wednesday posted a profit of $1.05 billion, or 91 cents a share, compared with $558.3 million, or 49 cents a share, a year earlier.
Adjusted earnings per share were 85 cents, compared with estimates of 66 cents a share according to analysts polled by FactSet.
Revenue ticked down 1.4% to $9.32 billion, compared with analyst estimates of $9.17 billion. The decrease was driven by the conversion of Starbucks retail operations in China to a licensed joint venture model, the company said.
Same-store sales rose 7.9%, compared with Wall Street's projection for 5.7% growth. The growth was driven by an increase in transactions and average ticket, the company said.
The results come as Starbucks looks to stoke a turnaround under Niccol. The chain has worked to win back business in the mornings, and is hoping to lure customers in the afternoons. It's also invested in improving its cafes and services, with upgraded interiors and more training for baristas.
"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," Niccol said, adding the company has more work to do.
Starbucks also raised its guidance for the full year.
The chain now forecasts adjusted earnings per share of $2.55 to $2.65, up from a prior projection of $2.25 to $2.45. It now expects revenue to be flat or grow slightly from a year ago, compared with its previous guidance for roughly flat.
The company now projects full-year same-store sales growth nearing 6%, compared with a prior forecast of 5% or more.
Shares rose 7.5% to $111.97 after hours.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
July 29, 2026 16:53 ET (20:53 GMT)
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