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Starbucks reported quarterly results on Thursday.MIKE BLAKE/Reuters

Starbucks Corp attracted more customers in the latest quarter on an expanded line up of beverages and food offerings in the United States and China, leading the coffee chain to raise its fiscal 2019 profit forecast.

Shares of the company rose nearly 6 per cent to $96.40 after the bell and were on track to hit a record high, after the world’s largest coffee chain posted its biggest same-store sales growth in three years.

Starbucks has been trying to make its menu more appealing by adding new beverages such as the Dragon drink and Cocoa Cloud Macchiato, while also expanding the delivery side of its business with new partnerships.

The added food options and Nitro Cold brew, a rich coffee that has a foamy texture like beer, lured more customers to stores during lunch hours, which is typically the slowest time of the day, the company said.

Those efforts led to a 3 per cent growth in traffic in the second quarter.

“(Traffic is) an area where Starbucks has struggled,” Edward Jones analyst Brian Yarbrough said. “A lot of investors were asking: ‘When are you going to see a traffic increase?’ ... This is a nice quarter on that standpoint.”

The in-store traffic trend was encouraging as Starbucks and other restaurants had been raising prices to buffer bottom lines as more customers increasingly use mobile apps to order food and beverages.

The company has also been investing heavily in China by opening new stores and expanding delivery to cater to increased demand for on-the-go coffee.

Same-store sales rose 5 per cent in China and the Asia-Pacific region, beating analysts’ estimates of a 3.45 per cent growth, according to IBES data from Refinitiv. In Americas, same-store sales surged 7 per cent, above estimates of a 4.43 per cent gain.

The company is now expecting same-store sales near the top end of its fiscal 2019 forecast of 3 per cent to 4 per cent growth and raised its earnings forecast to between $2.80 and $2.82 per share.

Total net revenue for the third quarter rose 8.1 per cent to $6.82 billion. The company earned 78 cents per share.

Analysts had forecast a profit of 72 cents per share and revenue of $6.68 billion.

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Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 24/05/24 4:00pm EDT.

SymbolName% changeLast
SBUX-Q
Starbucks Corp
+0.72%78.87

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