Starbucks (NASDAQ:SBUX) lifted its full-year 2026 guidance on Tuesday, raising expectations for both comparable-store sales growth and adjusted earnings per share, as CEO Brian Niccol continues to push forward a turnaround strategy that is attracting more customers back to stores.
The company now expects comparable store sales to grow by at least 5.0% in fiscal 2026, both globally and within the U.S. It also projected adjusted earnings per share in a range of $2.25 to $2.45.
Shares rose more than 5% in premarket trading on Wednesday following the update.
Starbucks reported a 6.2% increase in global same-store sales for the second quarter, supported by a 3.8% rise in comparable transactions and a 2.3% increase in average ticket size.
Reacting to the results, Jeffrey Bernstein noted the “U.S. comp beat, while Int’l met consensus, which coupled with operating margin upside, drove an EPS beat. And comp momentum continues in April.”
Niccol’s strategy has centered on improving in-store operations, including simplifying the menu and shortening wait times—moves that have helped bring customers back in the company’s core U.S. market. Starbucks has also rolled out its “Back to Starbucks” initiative, which includes enhancements to employee pay and working conditions aimed at improving staff retention and store consistency after stalled negotiations with a union representing some U.S. baristas.
Second-quarter consolidated net revenue rose 9% to $9.5 billion, comfortably exceeding the consensus estimate of $9.12 billion.
“Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” said Brian Niccol, chairman and chief executive officer. “This is the Starbucks our customers deserve and the Starbucks we believe will deliver long-term growth and value for our partners and shareholders as we execute consistently, at-scale.”
Adjusted earnings per share for the quarter came in at $0.50, beating analyst expectations of $0.42 by $0.08.
The company’s consolidated operating margin improved to 9.4% for the quarter, an increase of 120 basis points compared with the same period last year.