Starbucks Corporation(NASDAQ:SBUX) increased its profit forecast for present fiscal year after sales in its top market of the US topped expectations. This has given the company an optimism that has escaped much of the US restaurant industry in recent months.
Stocks of the biggest coffee chain in the world have jumped 7% to $49.90 in extended trading on Thursday.
The exceptional quarterly results from the company that is known for its frappuccinos and lattes followed a sequence of earnings disappointments and downsized forecasts from some of the top performers of the sector, who are struggling with the still feeble economy and increasing competition from resurgent competitors.
It was two weeks back when McDonald’s had posted its worst quarterly restaurant sales growth in a span of 9 years and investor dearest Chipotle Mexican Grill said the speed of its restaurant sales growth could cool in the year 2013.
Howard Schultz, the Chief Executive of Starbucks said that the solid Q4 performance of Starbucks has ideally positioned the company to into the holiday season with a tough momentum.
The company based in Seattle has set its new earnings per share forecast for fiscal at $2.06 to $2.15, up from $2.04 to $2.14 for each share, previously. It also raised its aim for international net new stores from 1,200 to 1,300 on accelerated development plans for China.
Global sales at stores that have opened at least 13 months back were up 6%, aided by a 5% increase in traffic and a 1% rise in average spending for each visit. That has topped the 4.97% rise that analysts polled by Consensus Matrix had anticipated for.
In the upcoming months, Starbucks is counting on new products like Evolution Fresh juices and lightly caffeinated, low-calorie flavored Refreshers drinks to keep helping sales soar.
Starbucks has reportedly reopened most of the 1,000 stores that it had shuttered due to Hurricane Sandy.
Shares of SBUX were up over 9% to $50.84 in Friday’s session.