Starbucks reports higher profit but growth slows; lower coffee costs boost results

NEW YORK, N.Y. – Starbucks says its quarterly profit rose by 25 per cent as it benefited from lower coffee costs and stronger sales around the world.

The Seattle-based coffee company says global sales rose 5 per cent at established locations. That was slower than the increase in the previous quarter, however, and total sales fell short of Wall Street expectations.

Sales at established locations rose 5 per cent for the U.S. and the region encompassing Europe.

For the three months ended Dec. 29, it earned $540.7 million, or 71 cents per share. That was more than the 69 cents per share analysts expected.

A year ago, it earned $432.2 million, or 57 cents per share.

Revenue rose to $4.24 billion, shy of the $4.3 billion Wall Street expected.