Starbucks stock soars on fourth-quarter profit boost
Investors sent Starbucks shares up quickly after it posted a fourth-quarter profit of $150 million,or 20 cents a share, better than analysts had expected and a vast improvement from its $5.4 million profit during the fourth quarter last year. It had a 4 percent drop in sales, to $2.4 billion, which it more than made up for with $580 million in annualized cost cuts. That's $30 million better than it had promised to Wall Street. For the quarter, operating expenses were down 11 percent to $2.3 billion.
The quarter included $53 million in restructuring charges, compared with $99 million in the fourth quarter last year. Without the charges, Starbucks would have earned 24 cents a share, better than the 21 cents that analysts expected, according to Thomson Reuters.