Starbucks exceeded Wall Street forecasts for quarterly sales last night, led by the popularity of its Christmas-themed drinks in the US.
The company's growth in the US has been cooling in an increasingly crowded market for coffee houses.
The world's largest coffee chain said it listened to customers and brought back its red cups and Christmas favourites such as Peppermint Mochas and Gingerbread Lattes during the final three months of 2018.
"This comprehensive, insight-driven approach delivered results and importantly, created momentum that provides a solid foundation for future quarters," Starbucks chief executive Officer Kevin Johnson said.
The Seattle-headquartered company, which is battling high-end coffee houses and smaller upstarts in the US, has rolled out promotions, especially during slow afternoons to pull in more customers.
Iced beverages and its Draft Nitro cold brew which aims to create a beer-like experience have been particularly successful.
The company said its morning and afternoon sales in the December-quarter was the best in five quarters.
Partnerships with food-delivery companies and an increased focus on customer service through its mobile app are also helping boost sales, Starbucks executives said.
Globally, the company's same-restaurant sales rose 4% during the December-quarter, topping analysts' average estimate of a 2.8% increase, according to IBES data from Refinitiv.
Sales from Starbucks' Americas and US business reached a record $4.6 billion in the three months ended December 30, while same-restaurant sales in China, its second biggest market, also showed an increase.
In China, where the company competes with local brands like Luckin Coffee, sales at established Starbucks cafes beat estimates, driven mainly by new store openings and its delivery programme that now supports 2,000 stores across 30 Chinese cities.
The company said its quarterly net revenue climbed 9.2% to $6.63 billion, beating analysts' forecasts of $6.49 billion.
Net earnings attributable to Starbucks fell to $760.6m from $2.25 billion a year earlier, reflecting nearly $1.8 billion in gains last year from acquisitions and the sale of some businesses.
Excluding one-time items, the company earned 68 cents per share, beating estimates by three cents.
