Retail coffee chain Starbucks (SBUX) has raised its full-year guidance as its turnaround strategy takes hold and its financial results improve.
The Seattle-based company reported earnings per share (EPS) of $0.50 U.S., which beat the consensus estimate among analysts of $0.43 U.S.
Revenue in the period totaled $9.53 billion U.S., which topped the $9.16 billion U.S. that had been expected on Wall Street. Sales were up 9% from a year earlier.
Starbucks also reported its second consecutive quarter of traffic growth.
Global same-store sales increased 6.2% year-over-year, fueled by more visits to Starbucks locations. Wall Street was projecting same-store sales growth of 4%.
North America, the company’s home market, drove most of the quarter’s same-store sales growth, with U.S. same-store sales rising 7.1%.
In recent years, Starbucks has cut back on discounts and focused on luring customers with better cafe operations and new menu items.
Outside the U.S., growth was more tepid, with international same-store sales up 2.6%. China, the company’s second-largest market, weighed on its results, with growth of only 0.5%.
Looking ahead, Starbucks said global and U.S. same-store sales are now expected to increase by at least 5% this year, up from a previous forecast that called for a 3% increase.
Starbucks also raised its forecast for earnings, lifting it to a range of $2.25 U.S. to $2.45 U.S. per share from its previous outlook of $2.15 U.S. to $2.40 U.S. a share.
Management said that they are seeing sales growth from across the company’s menu, including new artisanal bakery items and protein cold foam.
SBUX stock has gained 15% over the last 12 months to trade at $97.28 U.S. per share.
