By Brooke DiPalma

Starbucks (SBUX) kept its growth story piping hot in the third quarter as CEO Brian Niccol leads the company into year three of its turnaround plan.

Starbucks posted same-store sales growth of 7.9%, more than the 5.7% growth Wall Street expected, according to Bloomberg data, and above the 6.2% jump seen in Q2. Last year, the company saw a 2% decline in overall same-store sales growth in the third quarter.

The coffee chain reported adjusted earnings per share of $0.85, higher than the Street's $0.56 forecast and up from $0.50 per share in the same period last year. Revenue of $9.3 billion came in above the Street's $9.2 billion estimate but was down from $9.5 billion in the same period last year due to the transition of its China business to a joint venture.

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"It's clear proof that our Back to Starbucks plan is working," Niccol told investors on the company's earnings call.

Starbucks stock jumped 5% in premarket trading on Thursday as investors assessed the report.

Niccol aims to bring back the cozy, welcoming concept Starbucks was once known for — the "third place," where customers would spend time outside of their homes or work.

He said Starbucks' "Coffee House uplift" efforts surpassed the goal of transforming 1,000 stores across North America by the end of fiscal 2026, and he said early data shows customers are going to the stores more throughout the day.

In November, Starbucks announced it sold a 60% majority stake in its China business to Boyu Capital in a deal valuing the business at $4 billion.

In North America, sales popped 8.1%, also above the 6% increase expected as the chain leans into fruity flavors and cold foams, which drive up average check sizes.

In addition, Starbucks raised its guidance yet again. The company expects US same-store sales to be up 6.5% or higher in the fourth quarter.

"We are encouraged by our strong start to the quarter but also recognize the year-over-year traffic comparisons we will lap and the continued variability in the broader consumer landscape," CFO Catherine Smith said.

For the year, Starbucks expects US same-store sales growth to be "a little more than" 6% and global same-store sales growth near 6%, Smith said. That's above previous expectations for global and US comparable store sales growth of more than 5%, which had already been revised up from guidance of 3% or greater.

Starbucks raised its earnings per share forecast to between $2.55 and $2.65, up from a previous range of $2.25 to $2.45.

According to data intelligence platform Placer.ai, visits to Starbucks outpaced the broader industry in May and June as consumers faced elevated gas prices and macroeconomic uncertainty.

Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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