Starbucks rises afterhours following earnings beat

United States coffee shop chain Starbucks reported an impressive earnings beat on Thursday, as its chief executive officer turned the company's attention towards China.

The majority of Starbucks' revenue comes from the US, but Howard Schultz has said that its future expansion lies in the Asian powerhouse, as it seeks to capitalise on increased efficiency.

Starbucks reported adjusted earnings of 56 cents per share with $5.71bn in revenue, having been predicted by analysts to reach 55 cents per share on $5.68bn.

The figures marked an increase from the same quarter last year, when earnings per share were 43 cents, and revenue $4.92bn.

The chain announced last month that it would be doubling its number of stores in China to over 5,000 in the next five years. Profits in the China and Asia Pacific area for the quarter were $192m, as 100 stores opened during the period.

Sales at existing stores disappointed however, rising only 4% after having been estimated to increase by 4.9%.

Starbucks' share price saw an initial spike when the earnings were released, but ended up around 1% higher.

"Starbucks record Q4 and fiscal 2016 financial and operating results in the face of ongoing economic, consumer and geopolitical headwinds, and the significant investments we continue to make in our people and our business, once again demonstrate the power, relevance and resilience of the Starbucks business and brand," said Shultz in a statement.