Starbucks Earnings Heat Up as Traffic Rebounds The coffee giant saw its profit surge as the company saw improvement in its Americas region.

By Reuters

This story originally appeared on Reuters

Starbucks Corp on Thursday said traffic to its Americas-region stores perked up during the holiday quarter, easing investor jitters about slower growth and boosting shares more than 3 percent in after-hours trading.

Sales at Starbucks cafes open at least 13 months were up 5 percent for the U.S.-dominated Americas region in the fiscal first quarter that ended Dec. 28.

Traffic was up 2 percent, an acceleration from the 1 percent gain posted in the previous quarter. Starbucks' Americas region contributes the majority of company revenue.

Customer visits to Starbucks' Americas-region cafes had cooled for five straight quarters, causing some investors and analysts to worry that the company's increased focus on food had slowed service.

Starbucks Chief Financial Officer Scott Maw told Reuters that traffic increased steadily over the holiday quarter, which is Starbucks' most important for sales.

The world's biggest coffee chain reported quarterly net income of $983.1 million, or $1.30 per share, up from $540.7 million, or 71 cents per share, in the year-earlier quarter.

Excluding items related to its acquisition of Starbucks Japan, Starbucks earned 80 cents per share in the latest quarter.

The Seattle-based company reiterated its fiscal 2015 revenue growth forecast of 16 percent to 18 percent.

It also set its forecast for full-year earnings, excluding items, at $3.09 to $3.13 per share.

Shares in Starbucks jumped $2.65, or 3.2 percent, to $85.39 in extended trading.

(This version of the story corrects 2015 EPS outlook in the ninth paragraph)

(Reporting by Lisa Baertlein in Los Angeles, editing by G Crosse)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Couple Started a Side Hustle to Improve a 'Terribly Made' Bathroom Essential. Now the Business Earns More Than $3 Million a Year.

Michael Fine and Lisa Schulner-Fine launched lifestyle brand Quiet Town in 2016 and have been growing it ever since.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Living

The 3 Lifestyle Habits That Made Me Sharper, Stronger and More Successful

These three simple yet powerful lifestyle changes transformed my productivity, energy and mindset. Here's how you can do the same.

Leadership

Everyone Needs a Mentor — But Being a Mentor Is Just as Important. Here's Why.

Mentorship isn't just about sharing knowledge. Here's why mentoring others could be your most valuable growth tool as an entrepreneur.

Living

Inspired by the Masters? Bring Your Work Hustle to the Golf Course with Mind Caddie, Now $99.99.

If the Masters made you realize that your game needs work, check out this performance coaching audio app.

Business Solutions

Generate 1,000+ Marketing Images This Month: 1min.AI Now $79.97 for Life

Get all of your favorite AI assistants in one place under one subscription with 1min.AI.