Starbucks Lifts Full-Year Outlook Following Robust Q2 Traffic Gains

Starbucks reported a strong fiscal second quarter, characterized by a surge in customer traffic and a subsequent upward revision of its full-year financial targets. The company's shares climbed approximately 6% in extended trading following the announcement, reflecting investor confidence in the current trajectory. CEO Brian Niccol described the quarter as a pivotal moment, labeling it the 'turn in our turnaround.' The company successfully leveraged increased visit frequency to drive top-line growth, signaling that strategic adjustments are beginning to resonate with consumers. Financial results for the period ended March 29 showed net sales rising roughly 9% to $9.53 billion. Net income attributable to the company reached $510.9 million, or 45 cents per share, up from $384.2 million a year earlier. On an adjusted basis, earnings per share were 50 cents, surpassing Wall Street expectations. Global same-store sales grew by 6.2%, significantly outperforming the 4% growth projected by analysts. Growth was primarily concentrated in the North American market, where U.S. same-store sales jumped 7.1%, supported by a 4.3% increase in traffic. In contrast, performance in China remained tepid. Same-store sales in the company's second-largest market grew only 0.5%, as aggressive discounting boosted traffic by 2.1% but led to a 1.6% decline in average spend per visit. Looking ahead to fiscal 2026, Starbucks has raised its forecast for global and U.S. same-store sales to an increase of at least 5%, up from the previous 3% projection. Additionally, the company lifted its adjusted earnings per share guidance to a range of $2.25 to $2.45, compared to the prior estimate of $2.15 to $2.40.