Starbucks beats forecasts, lifts full-year sales and earnings outlook

Starbucks announced quarterly results that exceeded market expectations, with global same-store sales climbing 7.9% and U.S. sales matching that pace during the April-June window. Revenue fell 1% to $9.3 billion, a decline attributed to the completion of a sale of a portion of its China business in April. Net profit surged 87% to $1 billion, and adjusted earnings per share reached 85 cents, outstripping the 66-cent forecast.

Chairman and CEO Brian Niccol said the performance validates recent operational changes, including added staffing during peak times, enhanced order sequencing technology, and store redesigns aimed at a cozier atmosphere. Based on the results, Starbucks raised its full-year comparable-store sales outlook to 6% and lifted its earnings-per-share target to a range of $2.55-$2.65. Shares jumped nearly 8% in after-hours trading following the announcement.