Starbucks 1Q profit up 10 percent

SEATTLE — Starbucks Corp.’s fiscal first-quarter profit increased 10 percent as the coffee company added stores, customers and new products.

The Seattle-based company reported after the market closed Thursday that it earned $382.1 million, or 50 cents per share, for the quarter that ended Jan. 1. That’s up from $346.6 million, or 45 cents per share, in the same quarter last year.

Its total revenue increased 16 percent to $3.44 billion.

The results beat analyst expectation 49 cents per share on revenue of $3.29 billion, according to FactSet. Starbucks said revenue from its stores open at least a year — an important measure because it strips away the impact of recently opened or closed stores — increased 9 percent, as more customers visited its cafes and spent more each trip.

Starbucks delivered major gains in its consumer products business, which makes Via instant coffee, Starbucks ice cream and other items for sale in grocery stores and other retailers. Revenue from this segment increased 72 percent.

The company also benefited from the addition of 241 new stores during the quarter. Starbucks now operates 17,244 stores worldwide.

Starbucks said that the company is still facing higher costs for coffee beans and other commodities, which cut into its margins during the period. But it expects those pressures to lessen in the second half of the year.

“Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead,” Schultz added,” CEO Howard Schultz said in a statement.

The company plans to open 800 new stores in the coming year. Starbucks said it expects to earn $1.78 to $1.82 per share for the full year.

The full-year guidance falls just short of analyst expectations of $1.83 per share. Shares of the company fell 54 cents to $47.80 in after-hours trading.

Starbucks shares rose 57 cents to close the day at $48.34.

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