Key Developments: Starbucks Corporation (SBUX.O)
22.19USD
9 Feb 2010
$0.28 (+1.28%)
$22.19
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$22.30
$21.66
10,408,100
9,627,912
$24.45
$8.12
Latest Key Developments
Starbucks To Make First Entry Into The Ready-To-Drink Coffee Category In Europe With Arla Foods
Starbucks announced that it will enter the ready-to-drink (RTD) coffee category in Europe. Starbucks also announced that it has signed an agreement with Arla Foods for the manufacture, distribution and marketing of Starbucks-branded RTD coffee beverages in Europe.
Starbucks Raises FY 2010 EPS Guidance
Starbucks announced that it now expects non-GAAP earnings per share (EPS) growth in the range of $1.05 to $1.08 excluding approximately $0.03 of expected restructuring charges, and including approximately $0.03 of additional EPS from the extra week in the fourth quarter of 2010, as fiscal 2010 is a 53 week year for Starbucks. According to Reuters Estimates, analysts were expecting the Company to report EPS of $1.02 for fiscal 2010.
Starbucks Increases FY 2010 EPS Outlook
Starbucks increased non-GAAP earnings per share (EPS) outlook for fiscal 2010 to a range of 15% to 20% growth over fiscal 2009. The Company reported EPS of $0.80 in fiscal 2009. According to Reuters Estimates, analysts on an average were expecting the Company to report EPS of $0.92 for fiscal 2010.
Starbucks Acquires Full Ownership of Starbucks Coffee France SAS
Starbucks announced that its subsidiaries, Starbucks Coffee EMEA and Starbucks Coffee International, Inc. have entered into an agreement with joint venture partner, Sigla, S.A. (Grupo Vips) of Spain, to which Starbucks, through its subsidiaries, will assume 100%operating control of the Starbucks business in France, converting the market to a company operated business. As part of the transaction, which is expected to close on September 30, 2009, Grupo Vips will be a fully licensed partner with exclusive rights to operate Starbucks coffeehouses within the territories of Spain and Portugal. Prior to the execution of this agreement, Starbucks and Grupo Vips each held 50% equity stakes in the operating entities in France, Spain and Portugal. Terms of the deal were not disclosed.
Starbucks Issues FY 2009 EPS Above Analysts' Estimates; Comments on FY 2010 EPS Outlook
Starbucks announced that for fiscal 2009, it expects to achieve EPS within a range of $0.44 to $0.45 per share on a GAAP basis, and $0.74 to $0.75 per share on a non-GAAP basis. For fiscal 2010, the Company expects non-GAAP EPS growth in the range of 13% to 18%, excluding $0.02 to $0.03 of expected restructuring charges in the first half of fiscal 2010, and including approximately $0.02 of additional EPS from the extra week in the fiscal fourth quarter. According to Reuters Estimates, analysts on an average were expecting the Company to report earnings per share (EPS) of $0.71 for fiscal 2009.
Starbucks Takes Plunge Into Instant Coffee-WSJ
The Wall Street Journal reported that Starbucks is taking on a new market, instant coffee. Starbucks has created an instant variety of its coffee that it plans to start selling at some of its cafés next month. The product, called Starbucks Via, is a soluble version of its brewed coffee that it will sell in slender packets. As with regular instant coffee, customers can pour the packets into hot or cold water, stir it and it's ready to drink.
Starbucks Begins Previously Announced Corp Layoffs-DJ
Dow Jones reported that, Starbucks laid off 500 corporate employees and 870 assistant store managers, following through on previously announced job cuts at the coffee giant. The notifications are part of plans the Company announced last month to cut 6,700 workers and close another 300 stores. In addition to cutting the assistant store manger positions, the Company said that another 530 unfilled roles will be eliminated, since a reduction in stores has reduced the need for some of those positions. Some of the employees will be offered jobs elsewhere in the Company while others will be separated from the Company.
Starbucks To Close 300 More Shops
Starbucks announced that as result of the ongoing, rigorous evaluation of its global store portfolio, the Company plans to close approximately 300 additional underperforming Company operated stores, approximately 200 in the U.S. and the remainder in international markets. These stores are in addition to the approximately 600 U.S. and 61 Australian market store closures announced in July 2008. The majority of the new store closures are expected to occur during the remainder of fiscal 2009. The Company has further reduced its fiscal 2009 new Company-operated store openings target in the U.S. to 140 new stores from its previous target of 200 new stores. As part of the effort to align the Company's non-retail support organization with the current operating environment, Starbucks plans a global workforce reduction that will result in approximately 700 non-store partners being separated from the Company in the U.S. and internationally, with about half at the Company's support center in Seattle.
Starbucks To Miss Q1 2009 Guidance-Reuters
Reuters reported that Starbucks said it does not expect to meet Wall Street estimates for first quarter 2009 and would double its cost cuts for the full year. According to Reuters Estimates, analysts are expecting the Company to report revenue of $2.769 billion and EPS of $0.22 for first quarter 2009.
Starbucks Issues FY 2009 EPS Guidance
Starbucks announced that for fiscal 2009, it expects GAAP earnings per share (EPS) of $0.78 and non-GAAP EPS of $0.90 if consolidated comparable store sales is negative 2%, GAAP EPS of $0.68 and non-GAAP EPS of $0.80 if consolidated comparable store sales is negative 5% and GAAP EPS of $0.59 and non-GAAP EPS of $0.71 if consolidated comparable store sales is negative 7%. According to Reuters Estimates, analysts are expecting the Company to report non-GAAP EPS of $0.87 for fiscal 2009.
Lack of "excellent" coffee blends: Consumer Reports
NEW YORK (Reuters) - After tasting 37 different blended coffees, Consumer Reports couldn't find one that measured up to its "excellent" or "very good" ratings, the publication said Tuesday.
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