The company posted its slowest same-store sales last quarter in a year, prompting the coffee giant to lower its sales projection for the full year.

Still, the pressures that caused the underperformance are transitory, CFO Rachel Ruggeri said in a call with analysts on Tuesday. Visits by occasional customers, which were lower in the quarter, have already started to rebound, according to CEO Laxman Narasimhan.

The shares rose 4.2% at 6:14pm in late trading in New York. The stock has lost 13% over the last 12 months, versus a 23% gain in the S&P 500 Index.

“Expectations were probably even lower than where the Street estimates were,” said Brian Yarbrough, an analyst at Edward Jones. “The quarter came in a little bit better than feared.”

The war between Israel and Hamas has had a “significant impact” on traffic and sales in the Middle East, Narasimhan said. The US business also took a hit due to conflict. Moreover, the recovery in China was slower than expected. Yet same-store sales in North America were largely in line, and operating margin in the region also beat estimates.

Those glimmers are helping to fuel the company’s hopes for a better second half, even if results in the current quarter remain below the full-year guidance.

Executives said strength among its most loyal customers and increasing digital sales are fuelling optimism, along with greater efficiency in store operations. The company has ramped up promotions, including half-off beverages, to bring customers in.

Starbucks now sees global and US same-store sales expanding in a range of 4% to 6% this year, down from an earlier view of as much as 7%. The chain also pulled back its forecasts for China and total revenue growth.

At the same time, Starbucks maintained its outlook for earnings per share to grow 15% to 20% this year. Yarbrough said there is risk to that forecast due to the lower expected sales expansion, but the wide range will make it easier for the company to meet the goal.

First-quarter earnings, excluding some items, were 90 cents a share, while analysts expected 93 cents. Net revenue of US$9.4 billion fell short of the US$9.6 billion average forecast.

Adjusted operating margin rose 130 basis points to 15.8%, in part due to higher efficiency in stores. It was partially offset by higher wages and new benefits for workers.