Starbucks' profit shows Americans need coffee fix

Published on NewsOK Modified: April 25, 2013 at 6:21 pm •  Published: April 25, 2013
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Starbucks, which has 18,000 locations around the world, said global sales at established cafes rose 6 percent during the period. That included an 8 percent increase in Asia, where the company has been focusing its expansion efforts.

But the figure fell 2 percent in Europe, where Starbucks has struggled to compete with local chains. The company also says the economy has made its turnaround push particularly difficult.

"It just continues to be a tough environment for us — and for everyone," Alstead said.

To improve results in the region, the company is shifting to more of a licensing model that lowers overhead costs and hands over control to local partners who may be more adept at adapting to local tastes.

Based on the momentum seen through the first half of the fiscal year, Starbucks said it was raising its outlook for 2013. But total sales came in shy of Wall Street expectations and its shares fell in afterhours trading.

For the quarter, Starbucks earned $390.4 million, or 51 cents per share. That's up from $309.9 million, or 40 cents per share, a year ago. Not including one-time items, it earned 48 cents per share, in line with analyst estimates.

Revenue rose 11 percent to $3.56 billion. But that was shy of the $3.58 billion Wall Street expected, according to FactSet.

Shares of Starbucks fell 3 percent to $58.75.

The company says it now expect full-year earnings of $2.12 to $2.18, up from the previous forecast of $2.06 to $2.15 per share.