May 19, 2024

Starbucks’s Profit Gains 20%

The company said it earned $261.6 million, or 34 cents a share, for the quarter, which ended April 3, meeting analysts’ average expectations. The profit was up from $217.3 million, or 28 cents a share, a year earlier.

Revenue rose nearly 10 percent to $2.79 billion, beating expectations for $2.73 billion, according to FactSet.

Starbucks said the underlying health of its business had never been better, despite the challenges of higher costs and a weak economy. The results showed the company’s strength.

The company, based in Seattle, now expects to earn $1.46 to $1.48 a share for the year, up from $1.44 to $1.47 a share.

But that is just short of Wall Street’s average forecast for $1.49 a share, and Starbucks shares dipped 69 cents, to $35.92, in after-hours trading.

The company said the new forecast accounted for a still bigger increase in commodity costs than it foresaw in January. It now says those rising costs will cut earnings for the year by 22 cents a share, up from 20 cents a share. The 2-cent difference reflects an expectation that dairy and fuel costs will keep rising, Starbucks said.

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