Starbucks is seeing its long-untapped afternoon business begin to perk up, CEO Brian Niccol told analysts on the company's earnings call. The midday and afternoon daypart generates $11 billion in sales after 11:00 a.m., and Niccol said the company is testing wraps and will soon debut sparkling beverages to build on transaction growth that has been stronger in the morning. Global comparable-store sales rose 7.9%, well ahead of expectations, marking the fourth straight quarter of same-store sales growth under Niccol's turnaround plan. Adjusted earnings reached $0.85 per share, beating the $0.66 forecast, and the operating margin expanded to 14.4% from 10.1%. Starbucks raised its full-year guidance and shares rose 6% in early trading, with the stock up nearly 30% this year.
Starbucks CorporationStarbucks reported strong earnings, raised guidance, and shares rose.