BiggnightsStarbucks Sees 20% Increase in Profit
April 28th 2011 01:01
According to numerous media outlets, second quarter profits for Starbucks Corporation increased 20% compared to a year ago. Starbucks (SBUX) saw its profit rise to $261.6 million, up to 34 cents a share, 6 cents above last year.
Interestingly enough, expenses for coffee companies have increased greatly in the past year, but Starbucks combatted that by raising prices without affecting demand.
I do not want to explicitly advise anyone to buy Starbucks stock, but they have increased their earnings projections for the year. Starbucks stock closed at 37.19 today.
Starbucks, known for its frequency of store locations and classic coffee shop ambience, has always been an innovative company looking for ways to become more than just a store that gives you a caffeinated boost. Most recently, Starbucks gained recognition for changing its logo and its well-publicized plan to expand to China. According to CEO Howard Schultz, the logo change (removing the “Starbucks Coffee” label) is due to potential expansion to other food products.
Starbucks already owns numerous subsidiaries, including Seattle’s Best Coffee, Hear Music, and Ethos Water. With the additional profit growth, the financial conglomerate that is Starbucks may be ready to expand even more than they already have. Just something to think about.
Interestingly enough, expenses for coffee companies have increased greatly in the past year, but Starbucks combatted that by raising prices without affecting demand.
I do not want to explicitly advise anyone to buy Starbucks stock, but they have increased their earnings projections for the year. Starbucks stock closed at 37.19 today.
Starbucks, known for its frequency of store locations and classic coffee shop ambience, has always been an innovative company looking for ways to become more than just a store that gives you a caffeinated boost. Most recently, Starbucks gained recognition for changing its logo and its well-publicized plan to expand to China. According to CEO Howard Schultz, the logo change (removing the “Starbucks Coffee” label) is due to potential expansion to other food products.
Starbucks already owns numerous subsidiaries, including Seattle’s Best Coffee, Hear Music, and Ethos Water. With the additional profit growth, the financial conglomerate that is Starbucks may be ready to expand even more than they already have. Just something to think about.
| 81 |
| Vote |
Add To: 
subscribe to this blog