Starbuck's net income rises 27% for the year

by Staff
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SEATTLE — Net income at Starbucks Corp. for the fiscal year ended Oct. 2 totaled $494,467,000, equal to 61c per share, up 27% from last year. Net income in the same period last year was $388,973,000, or 47c per share.

Net sales for the year grew 20% to $6,369,300,000, up from $5,294,247,000.

"Starbucks record results in fiscal 2005 reflect the exciting momentum that we continue to see throughout our business, and demonstrate the underlying power of the Starbucks brand," said Howard Schultz, chairman. "We are particularly encouraged by the early success and the continuously expanding development potential of our International business.

"From opening a record number of new stores, to the ongoing popularity of our core beverage and food items, to enhancing the customer experience through unique offerings in music and consumer products, Starbucks is appealing to a broad and diverse global consumer base."

Net income for the fourth quarter ended Oct. 2 totaled $123,747,000, or 16c per share, up 20% from $102,603,000, or 12c per share, in the same quarter last year.

Net sales for the fourth quarter were up 14% to $1,659,241,000.

Comparable store sales grew 8% in the fourth quarter. The increase was due to a 4% increase in the average value per transaction and a 4% increase in the number of customer transactions.

The company is targeting earnings per share of 63c to 65c for fiscal 2006, including stock compensation expense estimated at approximately 9c per share. On a comparable basis including stock compensation expense, Starbucks expects full year and quarterly earnings per share growth for fiscal 2006 to be consistent with the company's longer-term 20% to 25% targeted range.

The company is targeting total net revenue growth of approximately 20% and continues to expect comparable store sales growth in the range of 3% to 7% in fiscal 2006 with monthly anomalies.

In the United States, the Starbucks plans to open approximately 700 company-operated locations and 600 licensed locations in 2006.

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