Starbucks Inc, led by new stores, online shopping and distribution in China, and cold drinks in the United States, surpassed Wall Street sales and revenue forecasts on Wednesday.
Total net income rose 7 percent to $6.75 billion (£ 5.24 billion) for the world's largest coffee chain, higher than the average analyst estimate of $6.68 billion.
Starbucks shares increased by almost 3 percent in extended trading after the company based in Seattle also predicted comparable restaurant sales well above estimates in 2020. Its fiscal year concluded on the 29th of September.
Starbucks declared a year later an internal overhaul including cuts to corporate jobs and improvements in management, partially to improve declining profits. Further emphasis on digital sales and innovative drinks has been included in the reforms.
Starbucks has faced stiff competition from U.S. niche independent coffee shops as well as startups like Luckin Coffee in China.
The company continued to expand its loyalty program for "Rewards" to boost sales, including access to Happy Hours events.
In China, in the fourth quarter of the year, the system had 10 million active members, up 45 percent over the previous year. Membership in the U.S. rose 16 percent to 17.6 million.
Chinese consumers are "much more sophisticated technology than any other market in the world," said Kevin Johnson, Chief Executive.
Ten percent of China's transactions were electronic - 7 percent for distribution and 3 million for app orders. This is comparable to less than a percent of U.S. delivery orders. "We have two markets that are very different," Johnson pointed out.
Overall, restaurant sales opened in the fourth quarter rose 5 percent for at least 13 months. Analysts had expected 3.95 percent of the same-store sales rise, according to Refinitiv's IBES results.
Starbucks estimated that global comparable store sales for fiscal 2020 would rise from 3 percent to 4 percent, while analysts expected a 3.4 percent increase.
Starbucks plans to open nearly 2,000 new outlets next year, with 600 in the Americas and 1,400 more worldwide.
Starbucks is planning to open next month's world's largest shop in Chicago, a "Reserve Roastery," with about 35,000 feet of retail space spanning five levels.
Cold drinks, including iced teas and espresso, "Refreshers" fruit-flavored drinks, and Nitro Cold Brew drinks were another catalyst for U.S. production.
Under its alliance with Nestle, Starbucks introduced four flavored creamers during the spring.
In shops, quicker modern espresso machines can come out with built-in, internet-connected sensors in about the next 12 months to send information to a central location about each individual espresso shot, enabling managers to know if a machine needs support.
