The Seattle-based coffee chain said global comparable-store sales increased 7.9% during the April–June quarter, exceeding analysts’ expectations of 5.7%, according to FactSet. Comparable-store sales in the United States also rose 7.9%.

Investors responded positively to the results, sending Starbucks shares more than 5% higher in after-hours trading.

The company also raised its outlook, forecasting 6% global comparable-store sales growth for the fiscal year ending Sept. 28, up from its previous projection of 5%.

Starbucks now expects full-year earnings per share of $2.55 to $2.65, compared with its earlier guidance of $2.25 to $2.45.

Sales Growth Broadens Across Customer Groups

Starbucks said quarterly growth was driven by improved performance across multiple customer income groups and throughout both morning and afternoon business hours.

The company also reported that customers spent more during each visit, supported by continued growth in delivery orders and demand for newly introduced beverages.

The results suggest Starbucks’ sales momentum extended beyond its traditional morning coffee business.

New Beverages Support Customer Demand

Chairman and Chief Executive Officer Brian Niccol highlighted the success of the company’s seasonal beverage lineup.

He said the S’mores Cold Brew, featuring marshmallow syrup, marshmallow cream cold foam and graham cracker topping, became one of Starbucks’ strongest limited-time summer beverage launches in recent years, particularly among Generation Z customers.

Niccol also said Starbucks’ fruit-based Refreshers beverages continued performing well despite growing competition.

McDonald’s expanded its own fruit beverage offerings in the United States earlier this year as restaurant chains compete for customers in the fast-growing specialty drinks market.

Store Upgrades Continue

Starbucks said investments in store renovations have also improved the customer experience.

“People just feel better about, you know, even doing their mobile order pickup when they go to a coffeehouse versus a place that maybe wasn’t up to our Starbucks standards,” Niccol told investors during a conference call.

The company has redesigned more than 1,000 stores across North America and plans to renovate another 500 locations before the end of its fiscal year.

Revenue Tops Expectations Despite Annual Decline

Starbucks reported $9.3 billion in quarterly revenue, a 1% decline from the same period last year but above analysts’ expectation of $9.2 billion.

The company said part of the decline reflected the sale of a stake in its China business, a transaction completed in April.

Starbucks also said its quarterly results benefited from a tariff refund received during the period, which largely offset tariffs paid during the first three quarters of the fiscal year.

Profit Climbs Sharply

Starbucks reported net income of $1 billion, an 87% increase from a year earlier.

Excluding one-time items, the company earned 85 cents per share, surpassing analysts’ estimate of 66 cents per share.

The results reflect stronger operating performance as Starbucks continued efforts to improve store operations, expand menu offerings and strengthen customer engagement.

Company Sees Momentum Continuing

The higher full-year guidance reflects management’s confidence that store renovations, beverage innovation and stronger customer spending will continue supporting sales growth.

The company said improved performance across multiple customer groups and dayparts indicates demand has broadened rather than relying solely on traditional morning coffee traffic.

As competition intensifies across the coffee and specialty beverage market, Starbucks continues investing in product innovation and store improvements while balancing restructuring efforts and external cost pressures.

This report is based on reporting by The Associated Press.

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Coffee lovers, it’s time to double-check your morning brew! On March 25, the Food and Drug Administration (FDA) issued a Class II recall for certain coffee products from Massimo Zanetti Beverage USA. The recall affects coffee sold under the “Our Family” brand, and it’s all due to a mislabeling issue.

The recall was triggered after a portion of Our Family Traverse City Cherry-Flavored Decaf Light Roast Ground Coffee was mislabelled as decaffeinated. The product, which comes in 12-ounce bags with a best-buy date of August 8, 2025, had the wrong label, causing confusion about its caffeine content.

Massimo Zanetti Beverage USA, the company behind the coffee, voluntarily initiated the recall on March 13. As of now, the recall remains active, and the company has yet to provide a resolution.

This recall is classified as a Class II risk by the FDA. While the product may cause temporary or medically reversible health consequences if consumed, the chances of serious harm are minimal. However, for individuals who are sensitive to caffeine or need to avoid it for health reasons, it’s best to return or dispose of the product.

The recall affects 692 cases of the mislabeled coffee, which were distributed across 15 states:

• Colorado
• Iowa
• Illinois
• Indiana
• Kansas
• Kentucky
• Mississippi
• Minnesota
• North Carolina
• North Dakota
• Nebraska
• Ohio
• South Dakota
• Wisconsin
• Wyoming

If you have purchased this product in any of these states, be sure to check the packaging to see if your coffee is part of the recall.

If you have a bag of the affected coffee, you should stop using it immediately. You can return it to the store for a refund or dispose of it according to the FDA’s guidelines.

The company, Massimo Zanetti Beverage USA, has yet to comment on the recall request from PEOPLE.

This is not the only coffee-related recall this year. Earlier this month, the FDA issued a recall for over 75,000 bottles of two International Delight Coffee Creamers. The recall followed complaints of spoilage and illness linked to a texture issue in the creamers, though no food safety concerns were reported. Like the coffee recall, this was also classified as a Class II risk.

Danone, LLC, the parent company of International Delight, stated that the spoilage issue was caused by premature product deterioration and emphasized that the risk to consumers was minimal. Still, they opted for a voluntary recall to address the quality concern.

It’s been a year of recalls, with several food and beverage products affected, including:

• Dark chocolate products from Cal Yee Farms
• Baked goods from one of Dunkin’s vendors
• Cheese from Aldi
• Coca-Cola soda packs

These recalls highlight the ongoing effort by companies and the FDA to ensure consumer safety, even when risks are low.

While this recall is mostly about a mislabeling error, it’s a good reminder to always stay up to date on food recalls, especially if you’re sensitive to certain ingredients or caffeine. If you’re in one of the affected states and have purchased the recalled coffee, make sure to check the label and take action if necessary.

In the meantime, coffee lovers can breathe easy knowing that while this may be an inconvenience, the risk to health is low. Keep an eye out for more recall updates as the year progresses.

Source: People – FDA Issues Recall for Coffee Grounds in 15 States

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It’s the merriest time of year with the return of Starbucks holiday cups and handcrafted espresso beverages, including the iconic Peppermint Mocha, and returning favourites like the Caramel Brûlé Latte and Chestnut Praline Latte, starting November 7. Starbucks is also introducing a trio of new Cran-Merry Orange Refreshers, plus new and returning holiday pastries and beloved seasonal coffee blends including Christmas Blend and Holiday Blend.

Source

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