Starbucks' profits jump as sales climb

Starbucks' strategy of trying to win back business in the US is paying off

Coffee giant Starbucks has reported a sharp rise in profits thanks to strong sales which comfortably beat analysts' expectations.

Net profit for the three months to the beginning of October came in at $278.9m (£171.4m), an 86% jump on the $150m the company made a year earlier.

Revenue for the period was $2.84bn, up from $2.42bn.

As a result of the strong performance, Starbucks raised its profits forecast for next year.

Net profit for the year to the beginning of October more than doubled, from $390.8m to $945.6m.

Sales boost

"I am delighted with the record fourth quarter and full-year results we announced today," said Starbucks boss Howard Schultz.

"These results are particularly gratifying in light of the formidable economic challenges that our customers and we continue to confront in virtually every country and every market in which we operate."

Revenues rose in large part due to an 8% rise in like-for-like sales, which strip out the impact of sales from new stores.

The results pushed the firm's shares higher in after-hours trading.

Starbucks has been focusing on winning back business in the US and focusing on core markets, while closing underperforming stores, since Mr Schultz returned to the top job in January 2008.