Starbucks income up sharply in year

by Staff
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SEATTLE — Driven by increased traffic and sales, Starbucks Corp. saw net earnings jump 142% during fiscal year 2010.

For the year ended Oct. 3, Starbucks posted earnings of $945.6 million, equal to $1.24 per share on the common stock, which compared with income of $390.8 million, or 52c per share, during fiscal 2009. Revenue for the year was $10,707.4 million, up 10% from $9,774.6 million during the previous year.

“I am delighted with the record fourth-quarter and full-year results we announced today,” said Howard Schultz, chairman, president and chief executive officer. “These results are a credit to the hard work and dedication of Starbucks partners around the world every day and are particularly gratifying in light of the formidable economic challenges that our customers and we continue to confront in virtually every country and every market in which we operate. But beyond the story told by our financial performance, 2010 was a year of tremendous development and progress for Starbucks on many other fronts as well.”

For the fourth quarter ended Oct. 3, the company posted earnings of $278.9 million, or 37c per share, up 86% from $150 million, or 20c per share, during the same quarter of fiscal 2009. During the quarter Starbucks had revenue of $2,838 million, up 17% from $2,422.2 million during the same quarter of the previous year.

“We completed fiscal 2010 with strong momentum throughout our business,” said Troy Alstead, chief financial officer. “Meaningful same-store sales growth coupled with stronger financial discipline we have adopted within the organization delivered the excellent results we reported, leaving us well positioned for our next stage of profitable growth. The strong margin improvement we achieved in our U.S. and international business reflects the hard work our partners throughout the organization delivering top-line growth while also driving efficiencies in our operations.”

The company said it is increasing its e.p.s. outlook for fiscal 2011 to a range of $1.41 to $1.47.

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