Starbucks reported a 7.9% increase in comparable sales in the third quarter.
- Starbucks beat Q3 expectations with $0.85 adjusted EPS and $9.3 billion in revenue.
- CEO Brian Niccol said Starbucks’ Q3 results reflect progress in its turnaround efforts.
- Retail investors were split, with some praising Starbucks’ turnaround progress while others questioned whether the gains justify the stock’s valuation.
Starbucks (SBUX) stock rose after the company reported better-than-expected third-quarter (Q3) results, but investors remain unsure if the recovery can continue. Strong customer traffic and a higher yearly outlook boosted confidence, while some traders worry that rising labor costs and weaker international growth could limit future profit improvements.
Starbucks Tops Q3 Expectations
Starbucks posted Q3 adjusted earnings of $0.85 per share with a $9.3 billion in revenue, both beating the analysts’ consensus estimates of $0.65 and $9.1 billion, respectively, as per Fiscal AI data.
Global comparable sales rose 7.9%, helped by more customer visits in North America and higher spending per order. Following the strong quarter, Starbucks increased its fiscal 2026 earnings forecast to $2.55-$2.65 per share and expects global comparable sales to grow by about 6% this year.
Starbucks stock traded over 4% higher overnight, ahead of Thursday.
Starbucks CEO Says Turnaround Is Working As Q3 Results Boost Confidence
In the Q3 earnings call, CEO Brian Niccol said the company’s latest quarterly performance shows progress in its effort to rebuild the brand, improve operations and strengthen customer connections.
“North America continued to lead our performance in the quarter. Company-operated comparable sales increased 8.1%, and licensed coffeehouse net revenues were roughly flat despite net closures in the quarter.”
The region also recorded its first year-on-year operating margin expansion since early fiscal 2024.
What Are SBUX Retail Traders Saying
On Stockwits, retail sentiment around the stock turned to ‘neutral’ from ‘bearish’ territory with over a 600% increase in message volume in the last 24 hours. Despite the upbeat financial results, retail traders continue to hold mixed views on the stock.
A user said, Starbucks’ turnaround is starting to pay.
Another user said, “Brian Niccol has this turning in the right direction, yet the gap is whether that pace can justify the price from here. The street sees a recovery story. The numbers still have to catch up.”
A third user also echoed the same, saying, “great report, but stocks getting a bit expensive at these levels.”
A fourth one seemed to back the CEO, saying, “Brian Niccol is the greatest fast food/ casual CEO of all time.”
SBUX stock has gained 23% year-to-date.
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