Starbucks Raises Guidance Again as Turnaround Delivers 7.9% Comp Growth
SBUX sits 40% above its 52-week low of $77.99.
Summary
Starbucks raised its full-year outlook for the second time, now guiding to ~6% global same-store sales growth and adjusted EPS of $2.55-$2.65, up from $2.25-$2.45. The raise follows a blowout Q3: 7.9% comp growth crushed the 5.7% consensus, revenue of $9.30B beat estimates, and adjusted EPS of $0.85 was well above the $0.66 expected. CEO Brian Niccol's turnaround is gaining traction — four straight quarters of comp growth, market share stabilization among younger consumers, and operating margin improving to 14.4% from 10.1%. Shares rose 5% after hours, pushing near the 52-week high. The China divestiture closed, and tariff costs were largely offset by refunds. This is the strongest signal yet that the 'Back to Starbucks' strategy is working.
At the time of this announcement, SBUX was trading at $109.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $118.7B. The 52-week trading range was $77.99 to $109.23. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: CNBC TV18.