Starbucks NASDAQ:SBUX, a global coffeehouse operator, jumped approximately 3.7% in Thursday's regular-session trading after raising its annual sales and profit forecasts for the second time. The company expects global same-store sales to increase approximately 6%, compared with its previous forecast of about 5% or more. Starbucks also raised its adjusted-earnings forecast to between $2.55 and $2.65 per share from $2.25 to $2.45.
Third-quarter global same-store sales increased 7.9%, exceeding analysts' expectation of 5.7%. Adjusted earnings reached $0.85 per share, compared with the $0.66 consensus. Starbucks' consolidated operating margin improved to 14.4% from 10.1% one year earlier as cost reductions and tariff refunds helped offset investments in staffing, store operations and the customer experience.
Chief Executive Brian Niccol's turnaround strategy has simplified the menu and reduced customer waiting times, contributing to four consecutive quarters of comparable-sales growth. Consumer Edge analyst Michael Gunther said Starbucks had begun stabilizing market share, particularly among younger customers. The midpoint of annual earnings guidance increased by $0.25 per share, while the quarterly operating margin expanded by 4.3 percentage points. Investors may now assess whether Starbucks can sustain sales momentum while continuing to fund labor, store improvements and brand investment without reversing the recent margin recovery.