Key Developments For Starbucks Corporation
Starbucks Corporation (SBUX.O) (Nasdaq)
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.
