Second-quarter net income skyrocketed 769%, to $217.3 million, or $0.28 per share. Last year's second-quarter results included a heaping helping of restructuring charges, mind you, so the gaudy number is accurate but somewhat misleading. Revenue increased 8.6%, to $2.53 billion, while comps climbed 7%.
Starbucks has needed to get customers back in the door in greater numbers, so here's good news: U.S. comps increased 7%, driven not only by a 5% increase in the average bill, but also a 3% increase in traffic.
Starbucks fans might say, "Take that, McDonald's
Starbucks also touted the potential of new products like its instant coffee offering, Via, which will help it compete with brew-at-home rivals like Green Mountain Coffee Roasters
These heartening numbers give some credence to the idea that a lot of folks are partaking of luxuries once again. Coach's
Of course, Starbucks is eyeing international growth, too, including greater expansion in China, a popular target for other American companies like McDonald's and Yum! Brands
There's plenty of heartening news in Starbucks' quarterly results, even if they're a far cry from the crazy, caffeinated growth of long-ago yesteryears. Of course, Starbucks shares are up more than 100% in the last year, and its double-digit price-to-earnings multiple is starting to feel awfully reminiscent of headier days when it clocked in much higher growth in revenue and profits. Should investors cool their ardor for Starbucks? Let us know in the comments boxes below.