Starbucks lifts forecast as sales surge in Q1

Starbucks is showing signs of a strong comeback. The coffee giant lifted its annual forecast after a better-than-expected quarter, sending shares up about 5% in after-hours trading.

Under CEO Brian Niccol, the company’s “Back to Starbucks” plan is gaining traction.

Global same-store sales jumped 6.2%, beating the 3.7% estimate, while earnings per share reached 50 cents, above expectations.

Niccol said 80% of outlets are meeting the 4-4-12 service targets, which implies four minutes in the cafe, four in the drive-through, and under 12 minutes ​for mobile pickup.  

The company now expects fiscal 2026 earnings of $2.25 to $2.45 per share, up from earlier guidance.

However, the strategy comes at a cost. Higher labor investment reduced North American operation margins to 9.9% from 11.6%.  

The company expects easing pressure from tariffs and coffee prices later this year.