-- Starbucks' (SBUX) fiscal second-quarter results exceeded Wall Street's views, while the coffee giant raised its full-year outlook on the back of momentum in its turnaround efforts.
Non-GAAP earnings rose to $0.50 per share from $0.41 a year earlier, compared with the consensus on FactSet of $0.43. Revenue increased 8.8% to $9.53 billion, higher than the Street's estimate of $9.17 billion.
Global comparable sales grew 6.2% in the quarter that ended March 29, driven by transaction and average ticket gains. The US same store sales climbed 7.1%.
Starbucks' shares were up 5% in after-hours trading.
"Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth," Chief Executive Brian Niccol said in a statement.
For the current fiscal year, the company expects adjusted EPS of $2.25 to $2.45, compared with an earlier guidance of $2.15 to $2.40. Analysts are looking for $2.29.
Starbucks increased its growth outlook for global and US comparable sales to at least 5% from 3% or greater previously expected.
"We've been clear that topline improvement would come first, with earnings growth to follow," Chief Financial Officer Cathy Smith said. "We have more work to do, but we're pleased to see the combination of our comp growth and cost discipline starting to show up in margins."
The company launched its "Back to Starbucks" strategy in September 2024 to revive traffic growth and support long-term margin expansion. The company's first quarter marked the first positive comparable sales in eight quarters, Tigress Financial Partners said earlier this month.
Starbucks' shares gained about 16% so far this year through Tuesday close.