Starbucks Shares Advance After Posting Higher Quarterly Revenue

Shares of Starbucks rose as much as 6%, before trading 0.9% higher at $52.30 in extended trading after posting quarterly results that beat estimates, easing concerns that the world's biggest coffee chain had fallen into a widespread restaurant slump.

The company reported adjusted earnings of 56 cents per share on $5.71 billion total revenue. Topped expectations of $5.68 billion revenue with 55 cents per-share earnings. In the same period during the previous year, Starbucks saw a $4.91 billion revenue and earned 43 cents per share.

Net income during the fourth quarter rose to $801 million or 54 cents per share, compared to the $625.5 million or 43 cents per share a year prior.

Despite the upbeat quarterly report, the coffee seller issued a cautious revenue guidance for the financial year of 2017. Starbucks projected net earnings of 50-51 cents per share during the first quarter which covers the holiday season, lower than expected profit of 55 cents per share.

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