Starbucks matched Wall Street's expectations with its quarterly
profits, after the world's largest coffee chain enjoyed a strong
performance in the US despite the sluggish economic backdrop.
The company, which recently faced controversy over the level of
tax it pays in the UK, said it had booked net profits of around
$390m in the three months to the end of March, up from around $310m
in the same period last year. Profits rose as the company's global
same-store sales rose by 6%, in line with what Wall Street analysts
had predicted.
In particular, despite the challenging consumer environment in
the US, the company said same-store sales in its home country had
climbed by 7%. Sales in Asia were also strong, as the company looks
to expand its presence in China, a key market with a growing middle-
class.
Buoyed by the performance during the quarter, the company raised
its earnings guidance for the year to $2.18 per share from $2.12
previously. "Continued strength in our US operations, despite
ongoing uncertainty in the macro environment, has fuelled our
performance," the company's finance chief, Troy Alstead, said.
Starbucks chief executive Howard Schultz added: "Record operating
performance in [the quarter] continues to demonstrate the underlying
strength and resilience of our expanding global business."
The update comes as Starbucks expands not just geographically but
also into new areas. Last year, it bought the tea chain Teavana in a
$620m deal and spent $100m on Bay Bread, a San Francisco-based
bakery business. It has also been pushing its Verismo coffee and
espresso brewer, which began selling in its US stores in late 2012.
Originally published by NIKHIL KUMAR.
(c) 2013 Belfast Telegraph. Provided by ProQuest LLC. All rights Reserved.
