Starbucks Corp surges after food menu, mobile app help propel sales

Starbucks has jumped 6.4 per cent.

Starbucks Corp., the world\’s biggest coffee- shop chain, jumped around 6.4 percent in late trading post sales topped estimates, fueled by an expanded menu and it is increasingly popular mobile-phone app.

Revenue gained 18 percent to $4.56 billion within the second quarter, the Seattle-based company reported Thursday. Analysts had estimated $4.53 billion typically, according to data published by Bloomberg. The company also gave a confident view for the rest of the year, helping send the shares up as high as $52.57 in extended trading.

The quarter was \”definitely above expectations,\” said Peter Saleh, an analyst at Telsey Advisory Group. \”Consumers are purchasing more costly beverages, and they\’re purchasing more food.\”

Chief Executive Officer Howard Schultz has focused on expanding the business\’s digital services, including mobile ordering, which allows diners to transmit their requests before going to a store. Starbucks also is going to test delivery in Seattle and New York\’s Empire State Building, letting customers get their coffees sent to their offices.

\”Innovation is the force which will continue to drive our business and let us to grow and increase revenues and profits,\” Schultz said within the statement.

Even before the after-hours gain, the shares were up 20 percent this year, outpacing the 2.6 percent rise of the Standard & Poor\’s 500 Index.


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