Business

Starbucks earnings boosted by festive holiday sales

Starbucks Image copyright Getty Images

Coffee giant Starbucks has reported better-than-expected quarterly earnings as sales rose over the festive period.

Total net revenue rose to $5.37bn (£3.77bn) from $4.8bn in the three months to 27 December.

Revenue at the world's largest coffee company was boosted by Christmas holiday sales which rose 9%.

Chairman Howard Schultz said the strong results showed the "strength and relevance of the Starbucks brand around the world".

The company said 1-in-6 American adults received a Starbucks Card over the holiday season.

Starbucks said sales at stores that had been open 13 months or more rose by 8%.

Visits to established stores in the China/Asia Pacific region rose by 4%, but missed the 6.1% growth target analysts had predicted.

During a call with investors, chief financial officer Scott Maw said the company had locked in the price for more than 90% of its coffee bean needs in 2016.

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