After-Hours Earnings Action: Starbucks

Starbucks surging after hours on strong same-store sales for the holiday quarter.
4:50 | 01/22/15

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Transcript for After-Hours Earnings Action: Starbucks
I'm down perhaps in new York and as a manager Martin coming to close on Wall Street where this Thursday January 22 this story stock. Starbucks coffee chain just announcing their earnings for the holiday fourth. It shares jumping after hours earnings and revenue met Wall Street expectations. But investors were happy to see same store sales jumped 5%. Up prior to today Starbucks shares were up 11%. For the past year. Citi gets little bit an idea of what's going on Starbucks on every inject more stock analysts at the street. Jack let's go through this now because what was behind this jump in same store its same store sales. Well it was there was traffic and that's big it was the so there was 3% pricing 2% traffic to gets about 5%. Same store sales jump and honestly they've last courted they only had a 1% move in traffic and and investors are pretty disappointed by that pricing is helpful but. Most important thing is getting people in your stores and having a high frequency high volume and not. And traffic is really what they're looking outs that 2% number was actually much higher than any of the Allah side spoken to. We're expecting so. It's it were 1% higher so. So that was big positive I really think that's what's driving the shares operate now a hit anything strike you bit out of the ordinary that from this report. Evan beyond traffic Q is dom looking at their international growth. The kids in the US it was 5% copper bulls same store sales in China it was in China Asia Pak region it was up 8%. With all of that driven by traffic so I mean they're growing like a weed and in those countries and they just. Currently purchase the remaining stake in. And start Rick's Japan and and they're planning on building out a huge amount of stores in China. So that international rollout is really important to diverse elected the first by way from just that US growth so. See and that's how the growth and in that region that isn't familiar with the Starbucks brand is is pretty fascinating. Well not only expanding their reach is sort of getting in a larger Brett but also the debt that this company is going to write new bit new businesses T food services. Wine at night reserve wrote roast juries. Is a Smart move then or are they spreading themselves too thin. I think it's a really Smart may have but I think a lot of the of those initiatives are directed towards. Having a longer and longer hours at Starbucks not just making it a place you gotta get your coffee in the morning haven't. Place they have skinny knees may have different types of fear that their inch they've been introducing that. Allow people two lomb will drive traffic for lunch time. And then at night they have they're really interesting program it's this this evening program cervix evening. And that's where they're going to be serving line and small plates and it's. Going to be rolled out to a select to not have publications this year but. I think they'll ramp that up and look they pay a fixed and out of today they're gonna they're paying the same rat Wright so as many sales drivers as they can have going for them. It's going to be a left to their to their revenue. So the CEO Howard show to me usually seen as a retail visionary let me go but what's the big threat than the standing in his way is it is it. Trying to drive stores says same store sales try to get more people into his actual facilities. Or is it coffee price is you know what's potentially hampering his plan. Yeah I mean I think that it's. It's tough days a and they ought brick and mortar retail in general has been struggling and we've just seen. That across pretty much every industry but. And it actually Starbucks is one of the more sticky type of brands and there in people would much rather go to Starbucks then go to any of their other you know smaller locations or are different one off copy shops. Just in general and they have a very loyal base. I think the big threat is that they're digital efforts fall through the really they've really been ahead of the game and actually and encouraged by them. Of the of having like mobile pay and having there. Digital rewards program of the really ramping up their spending a lot of money to to have more refined products there and more sophisticated and having a lot be a lot more evolution Ted to what's existing so. If that falls through then it then there really wedded Ted the brick and mortar retail that he just purely they're they're actually launching delivery tip and Sinatra politic regions which I'm sure we'll hear from you and I would love here in New York have a just taken dart does so. I think these ignition if these initiatives all seem. Like great ideas but let's see if it's actually gonna drive earnings maybe who work alongside base doesn't get some drugs to deliver competent and amp not that that's an idea right there. Jack Marr from the street Jack thanks much have a good day sir. It's you don't like his story stock stay with abcnews.com for latest headlines and Dan Butler New York.

This transcript has been automatically generated and may not be 100% accurate.

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