Starbucks stock jolted higher as investors eyed signs of a turnaround

Starbucks (NASDAQ:SBUX) stock jolted higher in Tuesday’s afterhours trade as investors in the coffeeshop chain brushed off what would superficially appear to be downbeat financial results.

Signs of improving cost control and upbeat executive commentary around the previously announced ‘action plan’ were, evidently, reason enough to be cheerful.

Third quarter revenue, meanwhile, was down 1% year-over-year to $9.11 billion, missing market consensus estimates for $9.2 billion.

Global same-store sales declined by 3%, including a 2% drop in North America.

Earnings (adjusted) per share came in at $0.93 per share, which was a shade above forecasts pitched at $0.92.

“Our three-part action plan is beginning to work and driving operational improvements that we expect to improve financial performance,” chief executive Laxman Narasimhan said in a statement.

Whilst chief financial officer Rachel Ruggeri added: “Our efficiency efforts, which are tracking ahead of expectations, partially offset investments associated with the cautious consumer environment.

“Collectively, our disciplined approach enables us to preserve both balance sheet strength and flexibility, positioning us to successfully navigate through the current macroeconomic environment.”

Starbucks stock traded as high as $80.50 after the results, and having settled somewhat was up $3.12 or 4.11% priced at $79.06.