Starbucks Q1 profit up 10%
Seattle -- Starbucks Corp. reported that its fiscal first-quarter profit rose 10% for the quarter ended Jan. 1, 2012. But the company issued a modest forecast for the year that was slightly below Wall Street expectation, citing ongoing struggles with higher costs for coffee beans, dairy products and other ingredients.
Starbucks said revenue grew 16% to $3.44 billion with growth from all its business lines. It was the largest quarterly gain since 2007. It attracted new customers by adding stores in China and Morocco, upgrading locations in the United States and rolling out single-serve coffee and other new items at grocery stores. Same-store sales were up 9%.
"Our first quarter performance represents the highest quarterly earnings in the history of the company, and is a testament to the hard work and commitment of our 200,000 partners (employees) around the world. Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead," CEO Howard Schultz said in a statement.
Starbucks added 241 new stores during the quarter. It now operates 17,244 stores worldwide, with plans to open another 800 in the coming year.