Starbucks Corp reported higher quarterly profit on Thursday, as new drinks like the "flat white" and food such as breakfast sandwiches and bistro boxes helped heat up sales in its dominant Americas region. Sales at Starbucks shops open at least 13 months jumped 8 percent in the U.S.-dominated Americas unit for the fiscal third quarter ended June 28. Analysts polled by Consensus Metrix had expected a rise of 6.3 percent.Starbucks' Americas region, which includes the United States, Canada and Latin America, contributes the majority of company revenue. Americas region operating margin improved after lower costs for milk and other commodities helped offset employee pay raises. Same-store sales were up 7 percent globally in the latest quarter, perked up by an estimated 23 million more customer transactions than a year ago. The world's biggest coffee chain's net earnings jumped 22 percent to $626.7 million, or 41 cents per share.
Revenue rose 18 percent to $4.88 billion. Seattle-based Starbucks separately said its board had authorized the buy back of an additional 50 million shares under its ongoing stock repurchase programme. Shares in the company, which also got a boost from its loyalty programme and mobile payment and ordering technology, rose 3.1 percent to $58.30 in after-hours trading.
© Thomson Reuters 2015
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