Starbucks stock surged more than 5% in after-hours trading after the coffee chain reported quarterly earnings and revenue that topped Wall Street expectations. The move came after Starbucks posted global same-store sales growth of 6.2% in the second quarter, far above the 3.7% analysts had expected.
Starbucks said adjusted earnings were $0.50 a share, compared with estimates for $0.43 and $0.41 a year earlier. Revenue reached $9.5 billion, beating forecasts for $9.14 billion. The company’s sbux stock has climbed 16% year to date, outpacing the S&P 500’s 5% gain, and the latest results gave investors another reason to keep buying.
The quarter matters because it offers a fresh read on whether Starbucks’ turnaround efforts are starting to stick. Last year, the company saw a 1% decline in overall same-store sales growth in the second quarter, a weak comparison that made this year’s rebound more striking. During the period, Starbucks also expanded tipping options and announced $1,200 annual bonuses for baristas and managers starting in July, with the first payout due this fall.
Those changes were part of a broader effort to support workers while improving store performance, and some analysts had been watching closely to see if the strategy would translate into better traffic. BTIG analyst Peter Saleh said traffic could accelerate from 3% in the first quarter to near mid-single digits in the second quarter, saying that kind of sequential improvement would be hard to ignore as evidence that the turnaround is taking hold. Lauren Silberman said the gains reflected benefits from better operations supported by labor investments, strong innovation and more effective marketing.
For now, the numbers suggest Starbucks is getting more out of its stores, its marketing and its workforce than it was a year ago. The bigger question is whether that momentum can keep building once the boost from the latest changes settles into the business.
