Starbucks shares rise on raised forecast and traffic growth
Starbucks shares rose 5% as the chain raised its annual forecast. CEO Brian Niccol's turnaround plan boosted traffic by 5.9% through improved service speeds and simplified menus.
STARBUCKS CORP shares rose 5% midday Wednesday after the coffee chain raised its annual forecast following a second-quarter earnings beat. It marks the first major guidance upgrade since CEO Brian Niccol launched the "Back to Starbucks" strategy in September 2024. Broad-based traffic growth suggests the operational overhaul is stabilizing the brand across all consumer income levels in the United States.
### Operational Overhaul Drives Traffic CEO Brian Niccol said customer traffic increased across all income cohorts during the quarter. The coffee chain focused on simplified menus, shorter wait times, and increased staffing to improve order sequencing.
