Starbucks results exceed expectations

| January 21, 2010 | 0 Comments

US coffee chain Starbucks has exceeded market expectations by reporting a threefold rise in quarterly profits.

The chain posted a net profit of $241.5 million (£148 million) in the final quarter of 2009, compared with $64.3 million in the same period a year ago.

Meanwhile, same store US sales grew 4%, their first rise in over two years.

In the UK, like-for-like sales increased by 3.9% over the three month period with sales up 6% in December.

The group embarked on an aggressive cost-cutting exercise which involved thousands of job losses and the closure of hundreds of under-performing outlets.

Furthermore, in a bid to lure customers away from cheaper rivals amid the recession, it has introduced a lower price coffee, called Via.

Troy Alstead, the group’s chief financial officer, told the Associated Press news agency that the firm was “extremely pleased with the progress we’ve made”.


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