Starbucks earnings heat up on China expansion, digital and cold brews

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Starbucks earnings heat up on China expansion, digital and cold brews
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Starbucks Corp beat Wall Street sales and revenue estimates on Wednesday, driven...

) beat Wall Street sales and revenue estimates on Wednesday, driven by new stores, digital ordering and delivery in China, and cold drinks in the United States.

Starbucks shares rose nearly 3% in extended trading after the Seattle-based company also forecast 2020 comparable restaurant sales largely above estimates. Its fiscal year ended Sept. 29. To boost sales, Starbucks continued to expand its “Rewards” loyalty program, including access to Happy Hours events.

Ten percent of sales in China are digital - 7% for delivery, and 3% for mobile ordering. That compares to less than 1% of U.S. orders for delivery.Overall, sales at restaurants open for at least 13 months rose 5% in the fourth quarter. Analysts had forecast same-store sales growth of 3.95%, according to IBES data from Refinitiv.

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