Starbucks shares soared Wednesday after the coffee giant reported better-than-expected quarterly revenue and profit and raised its financial outlook for the year.
The Seattle company said global same-store sales in its fiscal third quarter rose 7.9%, which was well above the 5.7% increase Wall Street was expecting, according to analysts polled by FactSet. Same-store sales also were up 7.9% in the U.S. during the April-June period, the company said.
Starbucks said it now expects global same-store sales to grow 6% for its full fiscal year, which ends Sept. 28. The company previously forecast same-store sales to grow 5% for the year. The company also expects full-year earnings per share of $2.55 to $2.65, up from $2.25 to $2.45 previously.
Starbucks shares were up more than 5% in after-hours trading Wednesday.
Starbucks said its business grew across customer income levels and in the morning as well as the afternoon. Customers spent more per visit, partly due to growth in delivery orders but also due to innovative drinks, the company said.
S’mores Cold Brew, which features marshmallow syrup, marshmallow cream cold foam and a graham cracker topping, was particularly popular with Generation Z customers and is one of the company’s strongest limited-time summer offerings in years, Starbucks Chairman and CEO Brian Niccol said.
Niccol said Starbucks' fruity Refreshers also continued to see strong demand despite growing competition. McDonald's added fruity drinks to its U.S. menu in May, for example.
Niccol said Starbucks' redesign of stores to give them a cozier, coffeehouse feel helped in improving sales.
“People just feel better about, you know, even doing their mobile order pickup when they go to a coffeehouse versus a place that maybe wasn’t up to our Starbucks standards,” Niccol said Wednesday during a conference call with investors.
Starbucks has revamped more than 1,000 stores across North America so far and plans to complete another 500 before the end of its fiscal year.
Revenue fell 1% to $9.3 billion for the quarter, which also beat analysts’ forecast of $9.2 billion. Part of the drop in revenue was due to Starbucks' sale of a stake in its China business, a transaction that was completed in April.
Starbucks said its results also got a boost from a tariff refund it applied for and received during its fiscal third quarter. The refund largely offset tariffs that Starbucks paid in the first three quarters of its fiscal year, the company said.
Starbucks said its net income rose 87% to $1 billion. Adjusted for one-time items, the company earned 85 cents per share, which surpassed analysts' forecast of 66 cents.
FILE - A Starbucks sign is seen outside the coffee company's global corporate headquarters, May 11, 2026, in Seattle. (AP Photo/Lindsey Wasson, File)
LOS ANGELES (AP) — Although Myles Garrett is waiting on Aaron Donald's comeback decision just as eagerly as the rest of the Rams, Los Angeles' new superstar pass rusher says he won't attempt to influence Donald's process.
“If he’s here, I’m going to be excited to be his teammate, his partner in crime,” Garrett said Wednesday after the Rams’ fourth practice of training camp. ”I think we’re going to do great things. But it’s a difficult thing, coming back.”
Garrett said he hasn’t spoken to Donald about being teammates during the upcoming season. He's been busy settling in nicely with his new team after the blockbuster trade that brought him to the West Coast from Cleveland — and also inspired Donald to begin a workout program in an attempt to return to NFL shape after 2 1/2 years of retirement.
The 30-year-old Garrett and the 35-year-old Donald have combined to win five of the past nine AP NFL Defensive Player of the Year awards, with Garrett claiming it in two of the last three seasons for the Cleveland Browns.
“I think there’s a lot we can learn from each other,” Garrett said. “I’d love to pick his brain on the kind of things he does to attack his matchups, and I think the same could be said vice versa. ... . I’ve told him I’d love to learn from him. I’ve watched his tape. Obviously, I think everyone who’s been a rusher from anywhere across the line, they have a lot of respect for him. But I don’t want to push him one way or another.”
The edge-rushing Garrett has 125 1/2 career sacks, while Donald racked up 111 from the interior line during his landmark 10-year career, which ended with his retirement in March 2024. Their mutual respect and friendship goes back several years, and Donald's jersey is even displayed in Garrett's home in Texas after the stars did a jersey swap several years ago.
Rams coach Sean McVay said Tuesday that Donald's workouts are “going really well,” but he doesn't believe a decision is imminent.
Garrett believes the greatest challenge facing Donald is getting in shape to sustain the NFL tempo of relentless action during games.
“As much as you can try to work yourself back into shape, we get a small taste of it when we come back from the offseason, you’ve got to get your wind and your legs back underneath you,” Garrett said. “When you get on the field, things are flying around, you’ve got to find a way to get your conditioning back and slow down the game once more. Someone as great as he is, I think he could definitely come back and do it … for however many games he chooses to play.”
AP NFL: https://apnews.com/NFL
Los Angeles Rams linebacker Myles Garrett takes a breather during an NFL football training camp Monday, July 27, 2026, in Los Angeles. (AP Photo/Wally Skalij)
Los Angeles Rams linebacker Myles Garrett, right, rushes the running back during an NFL football training camp Monday, July 27, 2026, in Los Angeles. (AP Photo/Wally Skalij)
