Shares of Starbucks Corp. (NASDAQ: SBUX) rose more than 3% Friday in premarket trading after the Company reported better-than-expected sales and earnings growth late Thursday.

"We are particularly pleased with the sequential improvement in quarterly comparable store transactions in the U.S., underpinned by our digital initiatives and improved execution of our in-store experience," Chief Executive Officer Kevin Johnson said in a statement. "With this solid start to the fiscal year, we are on track to deliver on our full-year commitments."

Starbucks said net income fell to USD 760.6 Million, or 61 cents per share, from USD 2.25 Billion, or USD 1.57 per share, a year ago. The Company said it earned 75 cents per share on a non-GAAP basis. After stripping out a 7-cent gain from income tax items, Starbucks earned 68 cents per share, topping analysts’ estimates of 65 cents per share.

The coffee giant said revenue rose 9% to USD 6.63 Billion, beating Refinitiv estimates of USD 6.49 Billion for the quarter.

Overall, same-store sales rose 4% for the quarter ended Dec. 30. While the number of transactions in the U.S. remained flat, reported same-store growth thanks to a 3% bump in the average check size. Wall Street was expecting to see same-store sales increase by 3.2%.

The Company’s iced beverages led growth with its Refreshers, iced espresso and iced coffee drinks proving popular with customers all day.

“We also saw continued improvement in cold beverages,” Starbucks Chief Operating Officer Rosalind Brewer said. “So we continue to learn that cold beverages are sell all year long.”

Starbucks narrowed its outlook for fiscal 2019, saying it now expects same-store sales growth to be between 3% and 4% globally. At its investor day in December, the Company reaffirmed its previous outlook of same-store sales growth near the lower end of 3% to 5%.

Starbucks is forecasting net income between USD 2.32 to USD 2.37 per share for the fiscal year. The Company did boost its adjusted earnings forecast, thanks to income tax-items. It now expects to earn between USD 2.68 and USD 2.73 per share. It previously estimated adjusted earnings of USD 2.61 and USD 2.66 per share. It also expects revenue to grow 5% to 7% during fiscal 2019.

Starbucks, which has a market capitalization of USD 80.3 Billion, has had its stock price rise more than 6% over the past year.