Starbucks says it is seeing demand heat up as China recovers

Starbucks posted stronger-than-expected sales in its fiscal second quarter as demand in China began to recover and it opened nearly 500 new stores around the world.

The Seattle coffee giant said Tuesday that its net revenue jumped 14% in the January-March period to $8.72 billion. That was better than the $8.41 billion Wall Street had forecast, according to analysts polled by FactSet.

Same-store sales — or sales at stores open at least a year — rose 11% as traffic picked up in stores. That also beat analysts' forecast of a 7.3% increase.

Same-store sales in China were up 3%, reversing a 29% decline the company saw in its October-December period due to a spike in COVID infections. In North America, same-store sales climbed 12%, and the company reported more store visits as well as higher spending per visit.