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Starbucks Corp. shares were up 0.8 percent in midday trading on Monday after Chinese competitor Luckin Coffee Inc. moved forward with its bankruptcy filing.
The shares have gained 9.7 percent for the month to date after plunging 9.5 percent last month.
Luckin Coffee has been embroiled in a financial misconduct investigation that has led to charges from US regulators, the dismissal of corporate executives, and a stock decline of over 84 percent over the past year.
Meanwhile, Starbucks; business continued to rebuild in China, its second lead growth market. It expects same-store sales growth in China of about 100 percent in the second quarter.
According to Starbucks CEO Kevin Johnson, not only did they had an impressive five percent comparable store sales growth in China in the first quarter, but they also had rapid re-acceleration of new store development, which is their top growth driver in that market.
Johnson added that their Rewards customer engagement continues to grow with their mobile ordering more than doubling in China over the past year.
Starbucks has amassed 15.4 million members in its digital Rewards program in China.
