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Starbucks' Profit Climbs 34 Percent in Fourth Quarter

AP Photo

Starbucks says its profit rose 34 percent in its fiscal fourth-quarter, as the coffee chain attracted more customers around the world.

The Seattle-based company said global sales rose 7 percent at cafes open at least a year, including an 8 percent rise in both the U.S. and Asia.

Starbucks Corp. has managed to keep growing through a mix of measures. It's adding items such as Evolution juices, revamped its food offerings and hiked prices over the summer.

For the quarter, Starbucks said it earned $481.1 million, or 63 cents per share. Analysts expected 59 cents per share. A year ago, the company earned $359 million, or 46 cents per share.

Stephens analyst Will Slabaugh said Starbucks beat his expectations
for same-store sales, or sales in stores open at least a year. He said
in particular, the company's introduction of new pastries after its
purchase of San Francisco bakery chain La Boulange is proving to be
successful.

"For as mature of a business as Starbucks is, continuing to put out
this innovation that’s really working, I think, is very impressive," Slabaugh said.

Revenue rose to $3.8 billion, but was short of the $3.81 billion analysts expected.

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In July 2017, Ashley Gross became KNKX's youth and education reporter after years of covering the business and labor beat. She joined the station in May 2012 and previously worked five years at WBEZ in Chicago, where she reported on business and the economy. Her work telling the human side of the mortgage crisis garnered awards from the Illinois Associated Press and the Chicago Headline Club. She's also reported for the Alaska Public Radio Network in Anchorage and for Bloomberg News in San Francisco.