A caffeinated quarterly sales report for Starbucks.

Starbucks shares rose 7% on Wednesday morning following a better-than-expected quarter on the top and bottom lines. CEO Brian Niccol told Yahoo Finance that the company’s long-awaited comeback has finally taken hold, some 19 months into his tenure leading the coffee giant.

This comes despite consumers dealing with gas at $4 per gallon and still griping about high prices at Starbucks.

“If you want a brewed cup of coffee, it starts at $3 … you can work your way all the way up with Frappuccinos that are highly customized that get closer to the $7 to $8 range. But we actually offer just about every drink you can think of at just about almost every price point you can create,” Niccol said on Yahoo Finance’s Opening Bid (video above).

“We want to make sure you understand you are getting the best craft, the best quality, and then you’re going to get this touch of humanity that you’re not going to get anywhere else,” he added of the company’s goal.

Starbucks comeback quarter at a glance: The company reported fiscal second quarter sales growth of 8% to $9.5 billion. Earnings of $0.50 beat analyst forecasts for $0.43.

The performance was fueled by a resurgence in customer traffic — particularly in North America, where comparable store sales jumped 7.1%. Transactions for the region increased at their strongest rate in three years. A blemish on the results: Investments in store hours, training, and wages pressured North America operating margins by 170 basis points year over year.

The quarter’s success is being attributed to Niccol’s “Back to Starbucks” strategy, aimed at improving line speed and mobile ordering. The company has also released new menu items more thoughtfully, including “energy refreshers” and matcha teas targeted to the afternoon crowd.

Starbucks said global and US same-store sales for its current fiscal year are now expected to increase by at least 5%. Previous expectations were for an increase of 3%. Starbucks also raised its forecast for adjusted earnings per share to a range of $2.25 to $2.45, up from $2.15 to $2.40 previously.

What Wall Street is saying

• Citi analyst Jon Tower: “With the top-line working and the stock trading at ~25x (PE ratio) the upper end of fiscal year 2028 EPS guidance, the next leg of growth likely requires some combination of cost savings (targeted $2 billion gross) and underlying leverage to visibly benefit the income statement.”

• Stifel analyst Chris O’Cull: “Valuation concerns continue to keep many investors on the sidelines … We believe this overlooks a fundamental structural shift. By offloading the operational burden and capital requirements of the China business to a proven partner, Starbucks is essentially selling volatility and buying back its balance sheet capacity. Furthermore, the $4.00 EPS target appears conservative given the cost-savings program and the U.S. brand position, which is arguably structurally stronger today than it has been over the last decade. We believe Starbucks is better positioned for return on invested capital expansion and compounding growth, justifying a multiple above historical norms.”

• Bernstein analyst Danilo Gargiulo: “Valuation remains elevated on a near-term basis, but we think Starbucks will grow into its fiscal year 2028 multiple over time. In a market with few large-cap companies offering comparable earnings durability, acceleration, and brand-driven demand visibility, Starbucks commands a scarcity premium and we believe investors will be willing to pay more for Starbucks.”