Starbucks reported its second straight quarter of traffic growth on Tuesday.

The coffee chain stated it was raising its full-year outlook for comparable earnings and same-store sales growth.

Starbucks’ global same-store sales, which only includes cafes open at least a year, increased 6.2%, fueled by more visits to its locations.

Starbucks on Tuesday raised its full-year outlook for comparable earnings and same-store sales growth after reporting its second straight quarter of traffic growth. This also touches on aspects of portfolio.

“This quarter marked a milestone for Starbucks – and the turn in our turnaround,” CEO Brian Niccol stated in a video posted alongside the company’s fiscal second-quarter results.

For fiscal 2026, Starbucks noted global and U.S. same-store sales are now expected to expansion by at least 5%, up from its prior projection of an surge of 3%. Starbucks also raised its forecast for adjusted earnings per share to a range of $2.25 to $2.45 from its previous range of $2.15 to $2.40 per share.

Alarmed by the current war between U.S. and Iran and its effects on fuel, few companies have chosen to hike their outlook for the full year when reporting their quarterly results in recent weeks, making Starbucks an outlier.

Niccol mentioned that higher gas prices haven’t changed the behavior of Starbucks customers yet, although he acknowledged even the company’s higher forecast raise is cautious — relative to its outperformance this quarter.

Here’s what the enterprise reported for the period ended March 29 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Revenue: $9.53 billion vs. $9.16 billion expected

Starbucks reported fiscal second-quarter net income attributable to the firm of $510.9 million, or 45 cents per share, up from $384.2 million, or 34 cents per share, a year earlier.other items along with

Excluding restructuring and impairment costs, the business earned 50 cents per share, beating Wall Street expectations.

The firm commented net sales rose roughly 9% to $9.53 billion.

Starbucks’ global same-store sales, which only includes cafes open at least a year, increased 6.2%, fueled by more visits to its locations. Wall Street was projecting same-store sales growth of 4%, according to StreetAccount estimates.

The firm has continued to see similar same-store sales growth into April, Niccol commented on the company’s earnings conference call.

North America, the company’s home sector, drove most of the quarter’s same-store sales growth. U.S. same-store sales climbed 7.1%, driven by a 4.3% jump in transactions.

It marks the second straight quarter of traffic growth for Starbucks’ U.S. cafes, signaling that the company’s turnaround has taken hold.

Under Niccol, the chain has cut back on discounts and focused instead on luring customers back by improving cafe operations, adding buzzy fresh menu items and reintroducing seating to its locations.

“We haven’t seen this transaction strength in years,” Niccol remarked during the company’s earnings call.

Starbucks’ U.S. sales growth came from across its menu, from its fresh artisanal bakery items to the increasing popularity of protein cold foam, CFO Cathy Smith commented.

Outside the U.S., growth was more tepid. International same-store sales rose 2.6%.

China, the company’s second-largest marketplace, weighed on its results, with same-store sales growth of just 0.5%. Starbucks has been leaning on more discounts in China to drive more visits, resulting in 2.1% higher traffic but a 1.6% decline in average spend.

Boyu Capital closed its deal for a majority stake of Starbucks’ China business at the beginning of the fiscal third quarter, Smith commented on the call. The alternative asset management firm now holds a 60% interest in a joint venture with Starbucks in the region.

Going forward, Starbucks does not plan to share China’s standalone revenue and same-store sales since it is now considered part of the company’s licensed portfolio, it mentioned.