Brian Niccol leads Starbucks to higher-than-expected same-store sales growth and raised full-year outlook
Starbucks reported third-quarter results that exceeded analyst expectations, driven by the "Back to Starbucks" strategy led by CEO Brian Niccol. The company reported same-store sales growth of 7.9%, surpassing the 6% growth expected by Wall Street. Under Niccol's leadership, the coffee chain has focused on improving service and making cafes more welcoming, which has resulted in a 3.5% increase in average ticket sizes and a 4.5% jump in store traffic. CFO Catherine Smith noted that while revenue fell slightly due to the sale of a controlling stake in the China business, the company's overall momentum is measurable. The administration of the company's finances saw a boost from tariff refunds, helping operating margins expand to 13.6%. Consequently, the company raised its full-year adjusted earnings per share forecast to a range of $2.55 to $2.65. The coffee giant also announced plans to continue store renovations and test new menu items like "spritzers" to maintain growth momentum.