Starbucks delivered impressive second-quarter results that exceeded analyst expectations, with global same-store sales rising 6.2% compared to Wall Street's anticipated 4% increase. According to reports from CNBC TV18, the world's largest coffee chain reported revenue of $9.5 billion, surpassing analyst forecasts of $9.2 billion. The company's U.S. same-store sales jumped 7%, demonstrating strong domestic performance with customer visits driving a 4.3% increase in the U.S. market. CEO Brian Niccol's turnaround strategy, called "Back to Starbucks," has focused on improving customer experience metrics and service quality. Traffic drove most of the gain, with comparable transactions up 3.8% and average ticket up 2.3%, indicating both more visits and modest pricing/mix benefits. As per MarketBeat, the company achieved its first quarter of EPS growth in more than two years with earnings per share of $0.50, up about 22% year-over-year. Following the strong results, Starbucks stock jumped in after-hours trading on Tuesday, reflecting investor confidence in the company's continued momentum.
Starbucks significantly raised its full-year 2026 outlook following the strong quarterly performance. As reported by CNBC TV18, the company now expects global and U.S. same-store sales to rise 5% for the full year, up from previous guidance of 3%. The company also increased its fiscal 2026 adjusted earnings per share forecast to $2.25 to $2.45, up from its prior outlook of $2.15 to $2.40. According to MarketBeat, CFO Cathy Smith noted the company is trying to remain prudent given "heightened uncertainty" in the macro environment, despite citing resilient demand trends. Consolidated operating margin improved to 9.4%, up about 110 basis points versus the prior year, while GAAP operating margin expanded 180 basis points year over year to 8.7%. The company also anticipates 600 to 650 net new coffeehouses globally across company-operated and licensed businesses.
The U.S. business emerged as the primary driver of Starbucks' strong quarterly results, with North America and U.S. comparable sales accelerating to more than 7%, driven by more than 4 percentage points of transaction growth - strength the company has not seen in three years. As reported by MarketBeat, Smith noted U.S. comp growth of 7.1%, with transactions up more than 4% and average ticket up nearly 3%. The company attributed ticket growth to multiple factors including the growing delivery business, beverage mix, an "artisanal bakery launch" that increased food attach, and the popularity of modifications led by the company's cold foam platform. Cold foam platform sales rose more than 40% in the quarter across the U.S. company-operated business. Starbucks Rewards metrics showed record 90-day active membership of 35.6 million, with membership up 4% year-over-year, and executives highlighted early traction from program changes rolled out in March.
The company's China operations underwent a significant transformation through a transaction that closed shortly after quarter end, generating approximately $3.1 billion in gross proceeds before taxes. As reported by MarketBeat, Smith said Starbucks received approximately $3.1 billion in gross cash proceeds before taxes and repaid $1 billion of February maturities prior to closing. The transaction will deconsolidate company-operated retail into a licensed joint venture, with Boyu Capital owning 60% and Starbucks retaining a 40% stake. Smith said the transaction's overall value to Starbucks is anticipated to be more than $13 billion, including the net present value of licensing economics. International segment net revenues were $2.1 billion, up nearly 8% year-over-year, with international comparable sales rising 2.6%, led by transaction growth of more than 2%. Management noted that all 10 of Starbucks' largest international markets posted positive comps for the first time in nine quarters.
Niccol's "Back to Starbucks" strategy has focused on operational improvements including faster service and enhanced customer experience. According to CNBC TV18, 80% of U.S. company-owned stores are now meeting Starbucks' goal of in-store or drive-thru service within 4 minutes and mobile order pickups within 12 minutes. The company has redesigned approximately 300 U.S. stores so far, with plans to redesign 1,000 stores by the end of this year to create a more coffeehouse-like atmosphere. Starbucks has also closed underperforming stores and cut corporate jobs, laying off at least 2,000 non-retail employees last year. The company announced a performance-based bonus program for U.S. baristas and shift supervisors that could pay eligible workers up to $1,200 per year, along with expanded tipping options and a shift to weekly paychecks for its U.S. workforce. The company has invested more than $500 million in additional staffing hours since the strategy launched.
