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Starbucks Profit Rises 10% on Holiday Coffee Sales

Thursday, 26 Jan 2012 04:52 PM

 

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Starbucks Corp., the world’s largest coffee-shop chain, said first-quarter profit increased 10 percent as consumers bought more specialty beverages during the holidays.

Net income in the period ended Jan. 1 rose to $382.1 million, or 50 cents a share, from $346.6 million, or 45 cents, a year earlier, the Seattle-based company said Thursday in a statement. Analysts projected 49 cents, the average of 25 estimates compiled by Bloomberg.

Chief Executive Officer Howard Schultz spent more than a year planning merchandise and beverages for the holiday season. Starbucks sought to boost sales with a low-calorie peppermint mocha that was new this year, along with Via instant coffee and Keurig brand single-serve capsules.

“A very successful holiday season drove strong global same-store sales,” Chief Financial Officer Troy Alstead said in the statement.

Starbucks narrowed its forecast for profit excluding certain items for $1.78 to $1.82 a share for fiscal 2012, compared with a previous range of $1.75 to $1.82. Analysts estimated $1.83, on average.

Starbucks fell 1.6 percent to $47.56 at 4:06 p.m. in New York. The shares gained 43 percent last year.

© Copyright 2013 Bloomberg News. All rights reserved.

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