Starbucks reported its fourth consecutive quarter of same-store sales growth, driving its shares up more than 7% in after-hours trading on Wednesday. The results, reflecting the company’s latest fiscal third quarter, suggest that its ongoing turnaround strategy is gaining traction.

The Seattle-based coffee chain saw a 7.9% increase in same-store sales, surpassing analysts’ expectations of a 5.7% rise. While total sales declined slightly by 1.4% to $9.32 billion, the figure still exceeded market forecasts. North American sales were the primary driver of growth, helping to offset a significant 34% drop in international sales. This decline abroad was attributed to varying regional challenges, though details on specific markets were not disclosed.

Chief Executive Officer Brian Niccol credited Starbucks’ renewed focus on innovative beverage offerings for the positive performance. The company introduced new limited-time products, including novelty sugary drinks and seasonal items like S’mores beverages, which have reportedly resonated strongly with younger consumers, particularly those from Generation Z. Niccol highlighted the role of these products in boosting both the number of customer transactions and the average amount spent per visit.

The company’s mixed results underscore ongoing challenges faced in international markets, which continue to be affected by economic uncertainties and shifting consumer habits. However, the resilience of Starbucks’ domestic business has provided a counterbalance, reaffirming confidence in the corporate strategy aimed at reviving growth through targeted product innovation and customer engagement.

Investors responded positively to the quarterly report, driving Starbucks’ shares higher in extended trading sessions. The company’s performance is being closely watched as it navigates a competitive landscape in the coffee and beverage industry marked by evolving consumer preferences and market dynamics.