Starbucks Earnings up 16%
Starbucks announced that their earnings were up 16% for the most recent quarter versus the same period a year ago. They continued and will continue their breakneck pace of opening stores in new areas (target is 2,000 new stores in 2006). Wall St. appeared a bit worried though as their same store sales of stores open a year or more only improved sales 4% over year ago. That may indicate that they are having trouble growing sales thorugh quality service, and products. This is also an indicator that $3 gasoline may be cutting into the pocketbook of their consumers, and people need to buy gas instead of a Venti Late. Hey, maybe people need to invest in their own machines and make that delicious espresso at home?
"Our third quarter financial results demonstrate the continued strength in both our U.S. and International operations," commented Jim Donald, Starbucks president and ceo. "Record third-quarter store openings helped drive robust revenue growth and our strong year-to-date results position us well to achieve our fiscal 2006 targets. We are confident in our growth potential and our ability to execute on that growth potential."
Added Donald, "July marked our 175th consecutive month of comparable store sales growth and we remain comfortable with our three to seven percent target range for the remainder of the fiscal year."
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Posted by Scott Martin at August 3, 2006 8:33 AM