Starbucks beats profit estimates despite hit to China business

A Starbucks sign is shown on one of the company’s stores in Los Angeles, California, U.S. October 19, 2018. REUTERS/Mike Blake GLOBAL BUSINESS WEEK AHEAD

Aug 2 (Reuters) – Starbucks Corp (SBUX.O) beat Wall Street estimates for quarterly profit on Tuesday as higher prices and strong demand for its coffees in the United States helped offset a hit to business in China from renewed COVID-19 lockdowns.

The Seattle-based chain earned 84 cents per share on an adjusted basis, beating estimates of 75 cents. Shares of the company rose more than 1% in extended trading.

However, global comparable sales rose 3% in the fiscal third quarter ended July 3, compared with analysts’ average estimate for a 3.76% rise, according to Refinitiv IBES.

A fresh round of lockdowns in Shanghai and a resurgence of COVID-19 in Beijing and other…