SBUX: Starbucks Stock Whips Up 5% Pop After Sales Top Estimates. Earnings Miss the Mark.

Coffee chain couldn’t turn around a spiraling pattern — same store sales dipped for the sixth quarter in a row.

☕ Starbucks Stock Brews 5% Rise

• Starbucks stock SBUX perked up 5% in after-hours trading Tuesday, as the coffee giant reported fiscal third-quarter revenue of $9.5 billion, beating Wall Street’s estimate of $9.3 billion. But the espresso shot came with a splash of bitter disappointment: earnings came in at $0.49 per share, well below the expected $0.65.
• Net income slid to $558.3 million, down from $1.05 billion a year ago. That’s a pretty big drop for the crème de la crème of coffee shops. And for investors hoping to see the turnaround brewing faster, it was a reason to sell the stock.
• Still, the top-line beat gave bulls just enough caffeine to stay optimistic, even if the margins were a little under-steeped.

🥱 Same-Store Sales Still in Slump

• The real jolt came from same-store sales, which fell 2% globally, worse than the 1.3% dip analysts expected. This marks the sixth straight quarter of declines, a troubling trend that’s starting to taste a bit stale.
• To make matters worse, the pace of decline had been slowing — until now. That unexpected reversal suggests Starbucks’ recovery isn’t steaming ahead as smoothly as hoped.
• Traders can take solace in a few signs of progress, but until the numbers perk back up, questions will linger about whether the turnaround plan is fully working.

🥛 Frothy Ambitions and New Flavors

• CEO Brian Niccol struck an upbeat tone, telling investors, “We’re gaining momentum” and are “ahead of schedule” on the turnaround roadmap. He promised a bold refresh in 2026 that includes protein cold foam and coconut-water based drinks, among other coffee-fueled innovations.
• Niccol added: “We’ve fixed a lot and done the hard work on the hard things.” The hope now? That a wave of new concoctions will bring back lost customers — and keep the regulars ordering one more cup.
• The company says better days are brewing, and with a clear roadmap and strong branding, there’s reason to stay patient — but the pressure’s on for results to catch up to the pitch.