Starbucks' Profit Climbs 34 Percent in Fourth Quarter
Starbucks says its profit rose 34 percent in its fiscal fourth-quarter, as the coffee chain attracted more customers around the world.
The Seattle-based company said global sales rose 7 percent at cafes open at least a year, including an 8 percent rise in both the U.S. and Asia.
Starbucks Corp. has managed to keep growing through a mix of measures. It's adding items such as Evolution juices, revamped its food offerings and hiked prices over the summer.
For the quarter, Starbucks said it earned $481.1 million, or 63 cents per share. Analysts expected 59 cents per share. A year ago, the company earned $359 million, or 46 cents per share.
Stephens analyst Will Slabaugh said Starbucks beat his expectations
for same-store sales, or sales in stores open at least a year. He said
in particular, the company's introduction of new pastries after its
purchase of San Francisco bakery chain La Boulange is proving to be
"For as mature of a business as Starbucks is, continuing to put out
this innovation that’s really working, I think, is very impressive," Slabaugh said.
Revenue rose to $3.8 billion, but was short of the $3.81 billion analysts expected.