Starbucks lifted its fiscal 2026 adjusted earnings per share guidance to a range of $2.55 to $2.65, compared with the prior forecast of $2.25 to $2.45 per share. The coffee chain also increased its same-store sales projections, expecting global same-store sales to rise nearly 6% and U.S. same-store sales to climb more than 6%, up from previous expectations of at least 5% growth for both metrics.
The company reported third-quarter net income of $1.05 billion, or 91 cents per share, compared with $558.3 million, or 49 cents per share, in the year-ago period. Operating margins expanded to 13.6% from 13.3%, aided partly by tariff refunds that largely offset related tariffs incurred in the first three quarters of the fiscal year. Excluding restructuring costs and other items, earnings reached 85 cents per share. Net sales declined 1% to $9.3 billion due to the company’s sale of its controlling stake in the China business through a joint venture formation.
Despite lower overall revenue, same-store sales at locations open at least 13 months climbed 7.9%, surpassing Wall Street estimates of 6%. U.S. same-store sales increased 8.1% during the quarter, with traffic jumping 4.5% and average ticket rising 3.5%, indicating both increased customer visits and higher spending per transaction. International same-store sales rose 5.7%, with approximately 90% of international locations now operating as licensed establishments.
Under CEO Brian Niccol’s “Back to Starbucks” strategy, the company has focused on enhancing service quality and cafe environments through labor investments and renovations. During the quarter, Starbucks opened 175 net new stores and achieved over 1,000 cafe uplifts ahead of its fiscal 2026 target, with plans to accelerate renovation efforts further. The company has also revised its menu by removing underperforming items and introducing new beverages, including plans to test sparkling drinks in select markets.
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