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Starbucks' sales exceed estimates after customer traffic grows
[CHICAGO] Starbucks Corp, the world's biggest coffee- shop operator, posted second-quarter sales that topped analysts' estimates after its mobile app and an expanded menu helped draw more customers to stores.
Revenue gained 18 per cent to US$4.56 billion in the period, which ended March 29, the Seattle-based company said in a statement Thursday. Analysts had estimated US$4.53 billion on average, according to data compiled by Bloomberg. Excluding some items, earnings amounted to 33 cents, matching analysts' estimates.
Chief Executive Officer Howard Schultz has been focused on expanding the company's digital services, including mobile ordering, which lets diners transmit their requests before visiting a store. Starbucks also is going to test delivery in Seattle and New York's Empire State Building, letting customers get their coffees sent right to their offices.
The shares rose in extended trading on Thursday after the results were released.