Caffeine boost: Starbucks shares buzz as turnaround plan beats sales estimates

Coffee behemoth Starbucks’ share price has risen more than eight per cent in after-hours trading, after the company performed better than expected in its fourth quarter.

Strong growth in the US and China helped to boost sales, taking global net revenue to $6.3bn (£4.8bn).

The company has battled with increased competition in recent months, laying off staff, closing some stores and revamping its menu to rise to the occasion.

Sales at established US venues rose four per cent in the three months to September, trumping estimates of 2.7 per cent as polled by Refinitiv.

Same-store sales in China rose two per cent, reversing a decline in the third quarter. 

Starbucks chief Kevin Johnson said its record fourth quarter performance "reflected meaningful improvement in virtually every critical operating metric" compared to last quarter.

Excluding items, profits also beat expectations as earnings per share hit 62 cents compared to a predicted 60 cents.