Starbucks reboot pays off with bigger profit

Associated Press

CHICAGO — Starbucks’ efforts to rebuild itself are taking hold: The world’s largest coffee chain said Wednesday that its third-quarter profit rose 37 percent as more customers visited its coffee shops and spent more when they did.

The company said Wednesday that it earned $207.9 million or 27 cents per share during the quarter that ended in late June. That’s compared with $151.5 million, or 20 cents per share, a year earlier, when it was stumbling under the weight of over-expansion.

Excluding one-time items, it earned 29 cents per share, meeting the average forecast of analysts surveyed by Thomson Reuters

Starbucks’ revenue climbed nearly 9 percent to $2.61 billion, topping analysts’ estimate of $2.55 billion.

CFO Troy Alstead said the company was both gaining new customers and getting more frequent visits from coffee drinkers during the day. And customers bought more of Starbucks’ Frappuccinos and its instant coffee, called Via.

“A lot of what we