April 28 (Reuters) – Starbucks beat Wall Street estimates for quarterly comparable sales and raised its annual forecasts, signaling investments in faster service and improved staffing under CEO Brian Niccol’s efforts to turn around the coffee chain pulled in more customers.
The company’s shares jumped 6.7% in extended trading on Tuesday. The stock has gained about 15% this year.
Niccol’s strategy to refocus Starbucks on in-store execution through measures like a simplified menu and shortened wait times has brought back consumers in its core U.S. market. He has paired that with the “Back to Starbucks” initiative, which includes improvements to worker compensation to boost employee retention and consistency on the floor.
The world’s largest coffee chain reported a 6.2% increase in global same‑store sales for the second quarter, above analysts’ expectations of a 3.7% rise, according to data compiled by LSEG.
The company projected fiscal 2026 adjusted profit per share to be $2.25 to $2.45, compared to its previous expectations of between $2.15 and $2.4.
It forecast fiscal 2026 global same-store sales to increase 5%, above its prior estimates of a 3% rise or higher.
“Around the world, we’re getting leaner and moving faster. We’re holding ourselves accountable to clear standards. And clearly we are innovating with discipline. That focus is driving better execution. And, in turn, better results,” Niccol said in a statement.
Overall visits to Starbucks rose 5.5% in the quarter, according to Placer.ai data.
The company’s quarterly consolidated operating margin was 9.4%, rising 120 basis points from the prior year.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Sriraj Kalluvila)
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