Solid sales send Starbucks earnings higher
SEATTLE — Increased sales, new stores and new products helped contribute to a 10% increase in earnings during the first quarter for Starbucks Corp.
For the quarter ended Jan. 1, the company had earnings of $382.1 million, equal to 50c per share on the common stock, which compared with income of $346.6 million, or 45c per share, during the same quarter of the previous year. Total revenue for the quarter was $3,435.9 million, up 16% from $2,950.8 million during the same quarter of the previous year.
“Starbucks continues to expand our global footprint and accelerate the innovation and momentum in our c.p.g. business,” said Howard Schultz, chairman, president and chief executive officer. “Our first-quarter performance represents the highest quarterly earnings in the history of the company and is a testament to the hard work and commitment of our 200,000 partners (employees) around the world. Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead.”
During the quarter the company opened 241 new stores globally, reaching 500 stores in both mainland China and Latin America. In addition, c.p.g. revenue increased 72% driven by the launch of Starbucks and Tazo branded K-Cup packs.
“Our first-quarter results demonstrate the fundamental strength of the Starbucks business and the powerful momentum we carried into fiscal 2012,” said Troy Alstead, chief financial officer. “A very successful holiday season drove strong global same-store sales, which combined with continued operational efficiencies, delivered record results despite continued commodity cost pressures. We are well-positioned to continue to drive strong revenue and profit growth throughout this year, and in years to come.”