Home / World Business
Sat, Jul 26, 2003 - Page 12 News List

Starbucks quarterly profits rise by 23% due to new drinks


Starbucks Corp, the largest US coffee-shop chain, said third-quarter profit climbed 23 percent as new stores, prepaid gift cards and products such as malt-flavored drinks bolstered sales.

Net income increased to US$68.4 million, or US$0.17 a share, from US$55.7 million, or US$0.14, a year earlier, the company said. Revenue in the period ended June 29 rose 24 percent to US$1 billion.

Starbucks added 283 coffee shops in the quarter, bringing its total to 6,741 licensed and company-operated stores. The company had also been adding specialty drinks and features such as WiFi access and gift cards to keep customers returning, helping to increase sales 8 percent at shops open at least 13 months.

"People are willing to give up a lot of things, but it doesn't look like Starbucks," said Reed Bender, a money manager at Robert Bender & Associates, owner of about 350,000 Starbucks shares.

Shares of Starbucks fell US$0.89 to US$25.50 on electronic exchanges after the close of NASDAQ Stock Market trading. The stock had dropped US$0.45 earlier. It had risen 29 percent this year.

Profit was US$0.01 more than the average forecast of analysts surveyed by Thomson Financial.

Starbucks expects to earn US$0.67 a share in this fiscal year and US$0.83 to US$0.85 the following year. The company was forecast to earn US$0.67 this year and US$0.81 next year, according to Thomson.

The company forecast same-store sales growth will be at or above the high end of its 3 percent to 7 percent range for the remainder of the fiscal year and 3 percent to 7 percent higher next year.

Starbucks plans to open about 1,300 new stores on a global basis in the next fiscal year, up from about 1,200 stores in fiscal 2003.

The company expects to open about 575 company-operated locations and 375 licensed locations in North America in the next fiscal year.

This story has been viewed 2968 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top