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. 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 nearly 8% in after-hours trading Wednesday.
Starbucks Chairman and CEO Brian Niccol said the results were further proof that the company's turnaround efforts were working. Over the last year, Starbucks has added employees to stores during rush times and used technology to better sequence in-store and mobile orders.
It has also encouraged friendlier service and is redesigning stores and adding seating to give them a cozier, coffeehouse feel.
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 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.
