Starbucks Boosts 2026 Outlook Amid Strong Sales and Rising Traffic Despite Gas Price Hikes

Starbucks has announced a significant upgrade to its full-year outlook after posting its second consecutive quarter of increased customer traffic. The coffee giant's global same-store sales surged 6.2%, driven by more visits to existing locations, signaling a successful turnaround under CEO Brian Niccol.

This optimistic forecast comes despite concerns over rising gas prices linked to geopolitical tensions, a factor that has made many companies cautious. Starbucks' ability to raise its earnings and sales guidance highlights its resilience and effective strategy in attracting customers back to its cafes.

Starbucks Raises Full-Year Earnings and Sales Forecast

For fiscal 2026, Starbucks now expects global and U.S. same-store sales to grow by at least 5%, up from the previous 3% projection. Adjusted earnings per share guidance was also increased to a range of $2.25 to $2.45, compared to the earlier $2.15 to $2.40 range.

CEO Brian Niccol described the quarter as a milestone, marking a clear turning point in the company's turnaround efforts. Despite the ongoing conflict between the U.S. and Iran impacting fuel prices, Starbucks has not yet seen a change in customer behavior, though the company remains cautiously optimistic.

Strong Quarterly Performance Beats Expectations

Starbucks reported adjusted earnings per share of 50 cents, surpassing Wall Street's estimate of 43 cents. Revenue climbed to $9.53 billion, exceeding the expected $9.16 billion. Net income attributable to the company rose to $510.9 million, or 45 cents per share, up from $384.2 million a year earlier.

The 6.2% increase in global same-store sales was fueled by higher customer visits, outperforming the 4% growth anticipated by analysts. This momentum has continued into April, reinforcing the strength of Starbucks' recovery.

U.S. Market Leads Growth with Rising Customer Traffic

North America was the primary driver of growth, with U.S. same-store sales up 7.1%, supported by a 4.3% increase in transactions. This marks the second straight quarter of rising traffic at U.S. Starbucks locations, a key indicator that the company's turnaround strategy is working.

Under Niccol's leadership, Starbucks has reduced discounting and focused on enhancing the customer experience by improving cafe operations, introducing popular new menu items, and bringing back seating areas.

"We haven't seen this transaction strength in years," said CEO Brian Niccol during the earnings call.

CFO Cathy Smith highlighted that U.S. sales growth was broad-based, spanning from artisanal bakery offerings to the rising popularity of protein cold foam beverages.

International Growth Slower, China Business Transitions

Outside the U.S., Starbucks saw more modest growth, with international same-store sales rising 2.6%. China, the company's second-largest market, showed only 0.5% same-store sales growth. Starbucks has been using more discounts in China to boost traffic, which increased by 2.1%, but average spending declined by 1.6%.

Boyu Capital recently acquired a majority stake in Starbucks' China business, holding 60% of the joint venture. Going forward, Starbucks will classify its China operations as part of its licensed portfolio and will no longer report standalone revenue or same-store sales for the region.

Looking Ahead: Starbucks' Resilient Growth Strategy

Starbucks' ability to raise its full-year outlook amid economic uncertainties and rising fuel costs underscores the strength of its brand and operational improvements. The company’s focus on enhancing customer experience and menu innovation appears to be paying off, particularly in its core U.S. market.

Investors responded positively, with Starbucks shares rising about 5% in after-hours trading. The company’s cautious yet confident guidance suggests it is well-positioned to sustain growth as it navigates global challenges.