China's cooling economy may have sent some cooling in coffee cups. Starbucks, the largest coffee chain in the world, announced that sales in the same stores increased 1% in the quarter ended December 31, as higher prices offset lower coffee sales, up 6% over the same period last year. The number of transactions decreased by 2%, according to the company's earnings report.
The US coffee chain added nearly 600 stores in China last year, bringing the total to 3,684. Starbucks faces increasing competition from domestic competitors such as Luckin Coffee in China.
Starbucks, however, remained optimistic about the prospects in China, the world's largest coffee market today. The company plans to nearly double the number of stores in the country to 6,000 over the next four years.
Worldwide, Starbucks revenue increased 9.2% to $ 6.63 billion in North America sales. Starbucks shares rose 3.4% early Friday.
Related: Lucky coffee reportedly seeking IPO in Hong Kong