Starbucks profit rises 19% in third quarter

by Staff
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SEATTLE — Starbucks earnings were up 19% during the third quarter, in part strengthened by efforts in China and Asia-Pacific.

For the quarter ended July 1, the company had earnings of $331.1 million, equal to 43c per share on the common stock, which compared with earnings of $279.1 million, or 36c per share, during the same quarter of the previous year. Total revenue during the quarter was $3,303.6 million, up 13% from $2,932.2 million during the same quarter of the previous year.

“Starbucks record Q3 results demonstrate the continued strength of our global business and brand, the success of multiple highly innovative consumer packaged goods initiatives and continued acceleration of our China and Asia-Pacific operations,” said Howard Schultz, chairman, president and chief executive officer. “Despite coming in short of our expectations, I am pleased with the increasing operating leverage we are seeing, the fact that this was our 11th consecutive quarter of record results and the fact we achieved the results in the face of high legacy commodity costs and challenging economic and consumer headwinds in key markets. I am confident we are operating with the discipline, flexibility and customer centricity necessary to enable us to continue driving e.p.s. growth in excess of revenue growth over the long run.”

For the nine months ended July 1, earnings were up 16% to $1,025.1 million, or $1.33 per share, which compared with earnings of $887.4 million, or $1.15 per share, during the same period of the previous year. Revenue for the period was $9,935.4 million, up 15% from $8,668.7 million.

The company also revised its fourth-quarter forecast to 44c to 45c per share, down from a previous range of 46c to 47c per share.

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