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)

Editor's Pick

Related Topics

Franchise

These 5 Companies Foster Loyalty and Success by Turning Exceptional Employees Into Business Owners

Explore how these brands prioritize internal talent, empowering employees to become successful franchisees and fostering loyalty within their organizations.

Business News

Wikipedia's 25 Most Popular Pages of 2023 Reveal What We All Can't Stop Thinking About

Have you been searching the digital index for the same things?

Science & Technology

I Used a Just-Launched AI Tool to Find a Christmas Present for My Fiancé. It Didn't Go As Expected — But It Was Definitely an Eye Opener.

AI makes all sorts of things easier — so why not the sometimes difficult task of choosing the perfect gift?

Living

Need a Gift? Try This Heated Jacket for Just $179.97.

Regularly priced at $575, this heated jacket is made with graphene-infused materials and includes its own power bank.

Starting a Business

Start Your Own Business or Buy a Franchise: Which Is Right For You?

Before you decide to jump into entrepreneurship — whatever that looks like for you — consider these six comparisons.