Starbucks shares rise after 3Q beat

Starbucks shares rise after stronger sales lift quarterly profit

Associated Press

NEW YORK (AP) -- Starbucks' shares advanced Friday after the coffee chain reported a 25 percent increase in its quarterly profit, helped by stronger sales and lower coffee costs.

THE SPARK: The Seattle-based chain reported after the market closed that global sales rose in all regions of the world, with its flagship U.S. market seeing an increase of 9 percent at stores open at least 13 months. The metric is a key indicator because it strips out the impact of newly opened and closed locations.

THE BIG PICTURE: Starbucks Corp. is making a variety of changes to drive up sales. In the U.S., the company is trying to improve the food that it offers and this spring rolled out revamped sandwiches and new salads. About a third of purchases include a food item, and the company is looking to increase that figure.

Going forward, the company also plans to expand the rollout of its new baked goods.

The company is also trying to enroll more people in its loyalty program; the company says people who enroll tend to visit more often.

Starbucks raised its forecast for the year.

SHARE ACTION: Its stock was up 7 percent at $73.06.

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