Starbucks Raises Outlook After Strong Q3 Sales Growth

Starbucks reported a 7.9% increase in global comparable store sales for its fiscal third quarter, surpassing analyst expectations. The coffee chain raised its full-year earnings guidance following the results, which were announced on Wednesday. The strong performance was driven by growth in key markets, including China and the U.S., where new product launches and digital initiatives boosted customer traffic. Starbucks now expects adjusted earnings per share growth of 20% to 21% for the fiscal year, up from its previous forecast of 15% to 17%. The company also reported a 12% rise in revenue to $9.17 billion, beating estimates. CEO Laxman Narasimhan highlighted the success of the company's "triple-shot" strategy, which focuses on expanding store networks, enhancing the digital experience, and innovating the menu. Despite inflationary pressures, Starbucks saw increased demand for its cold beverages and seasonal offerings. The results mark the best same-store sales growth in several years, signaling a strong recovery from pandemic-era disruptions.