CHICAGO — Caffeine lovers visited Starbucks Corp. more often — and spent more money when they did — helping the company triple its profits for its fiscal first quarter, officials said.
The Seattle company that made grande and venti household words earned $241.5 million, or 32 cents per share, for the three months that ended in late December.
During the same period last year, when the recession was in full force and Starbucks was closing stores and laying off workers to cut its costs, its profit was $64.3 million, or 9 cents per share. Its revenue rose 4 percent to $2.72 billion, up from $2.62 billion. “It was really excellent,” CFO Troy Alstead said. “You hear us always say we’re never done. But we’re extremely pleased with the progress we’ve made.”
Analysts surveyed by Thomson Reuters expected Starbucks to earn 28 cents per share on revenue of $2.65 billion.
Meanwhile, during its most recent quarter, Starbucks said its sales in stores open at least a year, considered a key restaurant measure, rose 4 percent for the quarter after two years of steady declines.
Now Starbucks executives plan to turn their attention to the company’s overseas business, where it plans several changes, including returning to a focus on customer service that was lost when the chain was at the height of its rapid expansion.
“The pace of growth was too much for us to do … and do it at the level of standards we had defined for ourselves,” Alstead said. “That’s really what broke down.”
In the coming year it plans to open about 100 new U.S. locations and 200 international sites. It has more than 16,000 locations around the globe.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
