Starbucks beats Q3 earnings, raises outlook

Starbucks reported fiscal third-quarter results that beat Wall Street expectations, with global same-store sales rising 7.9% versus the 5.7% expected. U.S. same-store sales also rose 7.9%. The company raised its full-year outlook, now expecting global same-store sales growth of 6% (up from 5%) and earnings per share of $2.55 to $2.65 (up from $2.25 to $2.45). Revenue fell 1% to $9.3 billion, still beating forecasts, partly due to the sale of a stake in its China business completed in April. Net income rose 87% to $1 billion, with adjusted EPS of 85 cents versus 66 cents expected. Shares rose over 5% in after-hours trading. CEO Brian Niccol credited turnaround efforts including store redesigns, improved staffing, and popular drinks like S'mores Cold Brew and Refreshers. The company also received a tariff refund that offset earlier tariffs. Starbucks has revamped over 1,000 North American stores and plans 500 more by fiscal year end.