Starbucks Corp. served up an extra frothy third quarter, zooming past Wall Street’s forecasts thanks to new drinks and growing loyalty.
Based on the strong results, the Seattle-based coffee giant raised its full-year earnings guidance. It now expects adjusted earnings of $2.80 to $2.82 per share, up from $2.75 to $2.79. It also said it expects global same-store sales growth of 4%, which is at the higher end of its previous forecast.
Starbucks shares, which closed at a record $90.98 Thursday, rose even higher in after-market trading.
Starbucks reported revenue of $6.8 billion, up 8% over the April-June period a year ago. That was higher than the $6.7 billion analysts forecast, according to FactSet.
Net earnings rose 61% to $1.4 billion. Adjusted for income tax benefits and other one-time items, Starbucks earned 78 cents per share, beating Wall Street’s forecast 72 cents.
Starbucks said sales at locations open at least 13 months — a critical measure known as same-store sales — jumped 6% globally, higher than the 4% growth analysts were predicting. Starbucks said half that growth came from increased transactions while half was due to visitors spending more.
Same-store sales jumped 7% in the U.S. and 6% in China.
Starbucks said new drinks, like its cloud macchiato and nitro cold brew, helped draw traffic. In the U.S., it increased membership in its Starbucks Rewards loyalty program by 14% to 17.2 million.