Shares of Starbucks rose 7% after the coffee company reported a beat-and-raise quarter, which included greater visibility into CEO Brian Niccol's next phase of the turnaround. The results were pleased with Starbucks' first earnings beat in five quarters and only the second beat since December 2023. However, Niccol acknowledged that investors will increasingly look for profit growth. He said some of the $2 billion in cost savings identified by management are expected to be flowing through to profit margins in the second half of the year. Analysts from Citigroup and Bernstein remain focused on the pace of margin flow-through. The company also raised its fiscal 2026 comparable sales guidance to 5% or more, up from 3%. However, there is potential upside due to labor productivity initiatives and coffee costs potentially easing in the latter half of this year.