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Starbucks Earnings Lukewarm; Same-Store Sales Offer Buzz

Starbucks only met earnings estimates late Thursday, but same-store sales growth was a positive as other restaurants struggled to get customers in the door. The coffeehouse giant has its sights on expanding further beyond java.

Fiscal Q2 earnings rose 17% to 56 cents, matching analyst estimates. Revenue climbed 9% to $3.87 billion, slightly under views for $3.94 billion.

But global same-store sales rose 6%, up from 5% in Q1. China and other Asia comps grew 7%.

Starbucks rose 2% late after closing up 1%.

"It was quite a strong report from the company, especially compared to what we've seen from other restaurants in the U.S.," said R.J. Hottovy, a senior analyst at Morningstar.

Starbucks raised its full-year EPS outlook to $2.62 to $2.68 from $2.59 to $2.67. Analysts are $2.66. It sees Q3 EPS of 64 cents to 66 cents vs. views for 66 cents.

Earlier Thursday, Dunkin' Brands (DNKN) said Q1 earnings rose 14% to 33 cents a share as revenue rose 6% to $171.9 million. But both fell below analyst estimates.

U.S. same-store sales at Dunkin' Donuts rose 1.2%, less than expected, as harsh winter weather hit its core East Coast markets. Dunkin shares fell 2%.

Breakfast competition has increased as Yum Brands' (YUM) Taco Bell debuted its breakfast menu that features a waffle taco. McDonald's (MCD), facing declining U.S. comps, fought back by offering free coffee with the purchase of a breakfast meal last month.

Starbucks caters to a different audience than other players in the "breakfast food wars," said Hottovy, adding that it's done a great job getting new products out.

"High-end consumers are still doing well or are at least resilient to some head winds.

Starbucks also is branching out into wine to get customers in at night. It previously said it plans to have alcoholic beverages at 40 U.S. locations by year-end. It already has spots open in Chicago, Los Angeles, Atlanta and Washington, D.C.

Starbucks is also looking to expand its presence in tea. It opened its first two Teavana bars in New York and Seattle last fall.

Meanwhile, Starbucks reportedly is discussing buying a stake in SodaStream (SODA), the in-home carbonated beverage maker.

Starbucks has a deal with Keurig Green Mountain (GMCR) and has its own home brewer, the Verismo.