Starbucks surpasses earnings forecast
Company looking overseas for expansion
SEATTLE – Starbucks earned $417.8 million in the third quarter, or 55 cents a share, beating Wall Street’s expectations by two cents.
Its profit rose 25 percent from the same quarter last year, on sales that grew 13 percent to $3.7 billion.
The coffee colossus said it plans to open 1,400 new cafes in the fiscal year that begins in October. That’s 100 more than it is opening this year.
Starbucks had 19,209 stores when the quarter ended June 30.
It is growing at about half the rate of its pre-recession juggernaut expansion, and it is looking more toward international growth. Of the 1,400 slated to open in 2014, half are in Asia, 600 in the Americas and only 100 in Europe, Africa and the Middle East.
Starbucks’ largest number of stores - and most of its profit - still come from the Americas, primarily the United States and Canada.
In the third quarter, the Americas segment’s operating income grew 24 percent to $619.3 million on revenues of $2.78 billion.
In Asia, its profit climbed 38 percent to $84.7 million on revenues of $233.7 million.
Its struggling Europe, Middle East and Africa business saw a sharp increase in profit from $1.6 million to $9.3 million on a modest 2 percent revenue gain.
The chain also operates other businesses, including grocery sales, tea shops and a juice business.
Starbucks shares, which rose 2.3 percent during the trading day, were up an additional 5.8 percent to $72.15 in after-hours trading shortly following the earnings news.