Starbucks raises annual sales and profit forecasts as turnaround gains momentum

SWITZERLAND – Starbucks has raised its annual sales and profit forecasts for the second time, as CEO Brian Niccol’s years-long turnaround efforts reignite demand at the world’s largest coffee chain. 

Under Niccol, the company has aimed to improve customer experience through a simplified menu and shortened wait times, fueling four straight quarters of comparable sales growth. 

“We have more work to do,” Niccol said in a statement on Wednesday, while finance chief Cathy Smith said the company is focused on what it can control amid a “dynamic operating environment.” 

The company forecast global same-store sales growth of near 6%, above its prior forecast of about 5% or above. It expects adjusted earnings per share to be between US$2.55 and US$2.65, compared with its previous forecast of US$2.25 to US$2.45. 

“Our third quarter results reflect the growing durability of our performance across both the top and bottom line, giving us confidence in the trajectory of our business,” said Chief Financial Officer Cathy Smith. 

“We are focused on what we can control amid a dynamic operating environment — executing our Back to Starbucks plan with discipline to drive connection, community and long-term value for our customers, partners, and shareholders,” she added. 

For the third quarter, global same-store sales rose 7.9%, well above the 5.7% increase Wall Street had expected, according to analysts polled by FactSet. Same-store sales also rose 7.9% in the U.S. during the April-June period, the company said. 

Revenue fell 1% to US$9.3 billion for the quarter, which nonetheless beat analysts’ forecast of US$9.2 billion. Part of the decline was due to Starbucks’ sale of a stake in its China business, a transaction completed in April. 

Starbucks said its net income rose 87% to US$1 billion. Adjusted for one-time items, the company earned 85 cents per share, surpassing analysts’ forecast of 66 cents. 

Despite these gains, consolidated net revenues for the quarter fell 1% to US$9.3 billion, reflecting the transaction involving Starbucks China, where a 60% ownership stake in the business was sold to Boyu Capital in April 2026. 

Starbucks used a portion of the China sale proceeds to complete a series of tender offers to purchase approximately US$1.3 billion in aggregate principal amount of certain series of the company’s outstanding notes. 

This shift caused Starbucks’ international revenue to fall 34%, though operating margin improved from 13.6% to 19.1%. 

Starbucks said it opened 175 net new stores in the third quarter of 2026, ending the period with 41,304 stores, 33% of which are company owned. Stores in the United States comprise 41% of Starbucks’ global portfolio, with 16,933 locations at period end. 

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