Starbucks Corp.'s (SBUX) fiscal fourth-quarter profit jumped 29% as the coffee giant reported continued same-store sales growth, particularly in the U.S., as traffic and the amount consumers spent per purchase also kept rising.
The company raised its quarterly dividend by 31% to 17 cents a share, pointing to the strength of its business and outlook, and authorized the repurchase of an additional 20 million shares.
Shares rose 2.9% to 42.60 in after-hours trading as results topped expectations. The stock is up 29% this year through Thursday's close.
For the just-started fiscal year, the company sees earnings of $1.75 to $1.82 a share, while analysts polled by Thomson Reuters are looking for $1.82. It reaffirmed its revenue-growth view.
Starbucks and other coffee makers have been raising prices in response to increases in coffee costs. Starbucks is in the midst of transforming itself from a predominantly retail-coffee chain to a broader consumer-products company and last month disclosed plans to reorganize its coffee varieties and introduce new light roast coffees...
