Aug 1 Reuters Starbucks missed market expectations for quarterly comparable sales on Tuesday, with demand for its coffees and cold drinks showing some signs of tapering in the North American and international markets even as China sales rebounded sharply.

The world39;s largest coffeehouse chain has targeted its younger, wealthier U.S. customer base by launching new drinks and promoting food options that have helped drive up average customer sales. But quarterly transactions climbed just 1 in North America, slowing from a 6 increase in the prior quarter.

However, Starbucks saw a sharp recovery in China, with comparable sales surging 46 in the third quarter. That rebound was in line with its expectations and is expected to last, company officials told investors in a call.

China, I think, is what39;s holding the stock up here, Sante Faustini III, director of product intelligence at research firm M Science, told Reuters.

Shares of Starbucks were marginally lower in afterhours trading even as the coffee chain topped Wall Street estimates for quarterly profit and slightly lifted its outlook for fullyear earnings growth.

M Science39;s Faustini III, said while the 7 rise in North America comparable sales as light, saying the focus was on booming China sales.

Starbucks projected average weekly sales in China to grow in the low to midsingle digits range in the current quarter, resulting in similar comparable sales growth.

It also cited a record more than 20 million members…