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Starbucks' Schultz urges investor support despite China concerns

Reuters  |  SHANGHAI 

By Jourdan

(Reuters) - Corp's outgoing said on Monday that a recent slowdown in would be short-lived, seeking to salve investor concerns that the U.S. chain is under pressure in the fast-growing market.

said last month same-store sales would be flat to slightly negative in its second-biggest market in April-June, versus 7 percent growth a year earlier, triggering a sharp drop in the chain's share price.

Schultz said fears of a slowdown were overblown and that "over time" the closely watched metric would be "positive and be consistent with what we've had in the past".

"It's a very short-term number that Wall Street uses, it's not a number we're concerned about," he said at a roundtable at the firm's flagship in

"I will say, unequivocally, that anyone who is betting against in is dead wrong."

China has been a sweet spot for Starbucks for the past few years, with a burgeoning cafe culture driving rapid growth even as the market saturated back home. Schultz sees China as overtaking the as Starbucks' top market, with the firm aiming to double cafe numbers there to 6,000 by 2022.

Schultz, who announced his departure from Starbucks in June, added the current trade tensions between the and China were creating an negative atmosphere between the two countries, though he downplayed the impact on the chain.

"I think we will be able to navigate through this fairly well. Having said that I don't think it's a healthy atmosphere between the two countries and I hope it's short-lived."

(Reporting by Jourdan; Editing by Stephen Coates)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 10:43 IST