Starbucks share price jumped as much as 3.5 per cent in after-hours trade today, as the coffee chain released an upbeat earnings report for the fiscal first quarter.
Profits at Starbucks for the Christmas period soared 82 per cent to $9.8bn (£6.5) year-on-year, which was in line with expectations. Sales rose 13.2 per cent to $4.8bn ($3.2bn).
The main drivers were sales in the Americas which were up 20 per cent from a year earlier. Meanwhile, sales in China and Asia Pacific rocketed 86 per cent after Starbucks acquired its Japanese operation.
This was offset slightly by sales in Europe, the Middle East and Africa which fell two per cent on unfavourable foreign exchange rates due to the strength of the US dollar. The US dollar index, which measures the greenback against a basket of other currencies, has climbed 14 per cent over the last year.
US same-store sales slightly beat analyst expectations rising 5 per cent, helping to dampen concerns the coffee chain's increasing focus on food isn't appealing to customers. It's previously pledged to double sales for its food arm in the US over the next five years.
Howard Schultz, chairman, president and chief executive said:
Our reimagined in-store holiday experience that included a vastly expanded assortment of Starbucks Cards, new holiday food, beverage and merchandise offerings and the opportunity to win ‘Starbucks for Life’ resonated powerfully with our customers and drove both increased traffic and tremendous excitement in our stores and around the Starbucks brand.