Profits surge at Starbucks

first_imgWednesday 26 January 2011 8:55 pm Show Comments ▼ Profits surge at Starbucks whatsapp Share COFFEE giant Starbucks posted a 35 per cent rise in operating income yesterday, which nevertheless fell short of analyst forecasts for the full-year as the rising cost of coffee continued to dent margins. The world’s largest coffee chain has seen wholesale coffee prices increase by nearly three-quarters since last summer – due to poor weather, fears over crop failure and rising global demand. The firm reported an operating income of $501.9m (£315m) for the three months to 2 January, up from $370.9m a year earlier. Earnings per share stood at 45 cents, compared with 33 cents last year. Christmas trading, traditionally a strong period for Starbucks, saw a five per cent rise in international sales. The firm hopes to continue its aggressive expansion by opening 500 new stores in 2011, 400 of which will be outside the US. Starbucks shares, which have risen 47 per cent in the last year, lost two per cent in after-hours trading following the results announcement after the New York closing bell. “The strong momentum in our global business in fiscal 2011 positions us to deliver 15 to 20 per cent earnings per share growth compared to last year’s results, and to reaffirm our 2011 guidance despite dramatically higher coffee costs,” said chief financial officer Troy Alstead. Chief executive Howard Schultz credited some of the earnings jump to Starbucks’ foray into pre-packaged instant coffee, which grew 12 per cent in the period and now makes up six per cent of revenue. whatsappcenter_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryBetterBe20 Stunning Female AthletesBetterBeautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comSenior Living | Search AdsNew Senior Apartments Coming Nearby Scottsdale (Take a Look at The Prices)Senior Living | Search AdsLuxury SUVs | Search AdsThese Cars Are So Loaded It’s Hard to Believe They’re So CheapLuxury SUVs | Search Ads Tags: NULL Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautCheese Crostini: Delicious Recipes Worth CookingFamily Proof KCS-content last_img read more