Coffee giant reveals profit growth

Starbucks says its profit rose in its second fiscal quarter as the world's biggest coffee company saw sales increase in the Americas and Asia.
  • Coffee chain Starbucks reported growing sales in the Americas and Asia
    Last updated: 26 April 2013, 05:30 BST

    Starbucks says its profit rose in its second fiscal quarter as the world's biggest coffee company saw sales increase in the Americas and Asia.

    The Seattle-based company, which has more than 18,000 locations around the world, raised its outlook for the year.

    Global sales at cafes open at least 13 months rose 6% during the three months ended March 31.

    That included a 6% increase in the Americas, its biggest region, where the number of average transactions and spending per visit increased.

    In China and the Asia Pacific, where it is looking to grow, the figure rose 8%.

    But it fell 2% in Europe, where Starbucks has struggled and has been working to turn around results.

    For the quarter, Starbucks earned 390.4 million US dollars (£253m), or 51 cents per share. That is up from 309.9 million US dollars (£200m), or 40 cents per share, a year ago. Not including one-time items, it earned 48 cents per share, in line with analyst estimates.

    Revenue rose 11% to 3.56 billion US dollars (£2.30bn). But that was shy of the 3.58 billion US dollars (£2.32bn) Wall Street expected, according to FactSet.

    Shares of Starbucks were down 3% in after-market trading.

    The company says it now expect full-year earnings of 2.12 to 2.18 US dollars, up from the previous forecast of 2.06 to 2.15 US dollars per share.

    Last updated: 26 April 2013, 05:30 BST

    Related stories  

    Tags  

     

UK news   

Ukip leader Nigel Farage (left) with Douglas Carswell

Opinion: Ukip defections could aid Miliband

The forthcoming Clacton by-election could present David Cameron with the biggest domestic crisis of his tenure, writes Chris Moncrieff.

Most popular