Starbucks says profit climbed 10% in the first quarter

Starbucks reported after the markets closed today that it made $382.1 million in the first quarter ending Jan. 1, on revenue of $3.4 billion. Still, shares fell in after-hours trading because the company's outlook isn't as rosy as analysts hoped for.

"A very successful holiday season drove strong global same-store sales, which, combined with continued operational efficiencies, delivered record results despite continued commodity cost pressures," Chief Financial Officer Troy Alstead said in an earnings release.

Starbucks reported that CEO Howard Schultz was paid $16.1 million in the fiscal year ended Oct. 2 -- $1.4 million salary and the rest in in stock, options and other equity compensation. The coffee giant also said that it added 241 new stores during the quarter -- it's biggest quarterly growth since the summer of 2008.

ALSO: Over 100 million Starbucks- and Tazo-branded K-Cup® packs shipped in Q1 following the November 1st launch.

Starbucks posts double-digital gains for the quarter || Read the press release

Comments

[James Connolly]

I'm sure now that the company is even more profitable than ever they will finally put an end to paying poverty wages.

I know, a great joke, but one can hope.

[Jeff Tom]

Starbucks is a fast food establishment. It pays relevant and appropriate market wages for the actual level of skill required to deal with customers, press buttons, and serve coffee. if you cannot live on THOSE wages, get another job or earn a skill where the market will reward you appropriately.

[otterinthewater]

... And those last two posts will serve as a preview for the rest of the thread.

[Jeff Tom]

Yep. We have been down this road many, many times. I am just cutting to the chase.

[Jack]

we're going to texas, yay...

[Coffee Soldier]

Wondering how they decide what questions to answer on the Open Forum broadcast...I know a few partners who submitted but they only seem to answer the "easy" questions.

[usorthem3]

@otterinthewater Perfection in it's simplicity. Now, can I get a tall Blonde? At my store we call a half Pike Place Roast & half Blonde a brunette. Happy Partner Appreciation

[SBUX Alum Bill]

I, for one, am amazed at the ability of Starbucks to continue its domestic growth. Do the rest of you think there's still room to grow further here in the States? I thought Starbucks had hit the ceiling (here in the US) in 2008 when sales growth stopped, earnings dropped and stores were closed. I was wrong.

[Herman]

stores were closed

Isn't closing marginal stores a contributor to these earnings?

[NOPASSION]

@ Alum Bill
I do believe starbucks has hit the wall or close to it on growth in the United States. What they are doing really well is constantly coming up with new/fresher ideas and items to sell to help stimulate sales such as the new blonde roast, lunch boxes, sandwiches, wine/beer,etc. Starbucks is also constantly rebranding themselves. (dropping coffee from their name)That is why I believe they are still a largely profitable company. Instead of opening a crap load of stores they are largely focusing on renovating the ones they already have. It is such a brilliant move by Howard.

[Clark Kent]

Wow. Just wow.

http://money.msn.com/investing/latest.aspx?post=581b2d10-502c-4be0-81ad-90592a4d7653

[drive]

Does anybody know how Howard's neck surgery went?

[LV]

Clark Kent -

I like how that article says a barista's pay is "probably around $12 an hour." I wish! I've been working there for 6 1/2 years, and I have yet to break 11.50. And that's as a shift supervisor too, not just a barista. Your average barista makes a little above minimum wage, close to $9 an hour.

Amazing that Schultz gets a bonus that's 55% larger than the average CEO on the S&P 500! He certainly thinks highly of himself.

[grossed out]

off topic, but how do the partners here deal with fruit flies in their stores? we never had a problem with them until our store was remodeled about a year ago. we've tried everything to get rid of them, and sometimes it seems like they're going away but then they come back worse than ever.

right now, we have an all time high number of flies. they hangout in the pastry case, by the tea's, on the menu boards, on the walls leading from the lobby to the restrooms, and on the grease trap in the backroom by the dish sink and mop sink.

PLEASE, if you have any experience with a fruit fly problem, please tell me how you got rid of them! it's disgusting, customers complain at least once every day, and we don't know what to do...

[Jennifer]

A natural fruitfly remedy is to put apple cider vinegar in a small cup and cover with plastic wrap. Poke some holes in the top with a toothpick. The flies swarm in but cant get out. Good luck!!!

[robobarista]

Clean you drains....the like breeding in the cr*p that lines the drains.

[Georgia Latte]

Drains will help (use spirit) --- Also call facilities and they will send out the pest company to help get it under control.

[grossed out]

Thank you for the input! Does anyone have any other ideas?

The drains get cleaned at least once daily. They're done around noon everyday, and then when I'm closing I usually do them again. So I don't think its the drains... We do spray the walls they hang out on with restroom cleaner this will kill them but the next day, they'll be back. It's an epidemic...

We've also tried regular vinegar, but I'll look into the apple cider vinegar, and also the plastic wrap thing.

I know that we've called it in more then once, I can't recall a pest company ever coming in though.

[happyasm]

If you have a grease trap call facilities and tell them it needs to be cleaned. My old store had a big problem with that.

[dan]

fill ALL of your drains and sinks with ice at night. They breed inside of drains more than in the spots you clean everyday. The cold freezes the eggs they lay and kills them. Do it every day for at least a week. Even the mop sink and dipper well

[dan]

fill ALL of your drains and sinks with ice at night. They breed inside of drains more than in the spots you clean everyday. The cold freezes the eggs they lay and kills them. Do it every day for at least a week. Even the mop sink and dipper well

[grossed out]

Thanks, I will try all of these suggestions. I really appreciate the help! :D

[Melpomene]

Get your SM to make a service call to get the grease trap cleaned/srviced. To save money SBUX stopped doing that regularly. Also, take the bathroom cleaner and dilute with some H2O amd wash all your lights with that solution. Inside the light fixtures the strings holding the lights. Thats where the babies are hatched.

[Penny Stock Alerts]

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