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Starbucks reports record annual profit | |
(about 7 hours later) | |
Starbucks may be complaining of "global headwinds" but that did not stop the world's biggest coffee chain from reporting record annual profits. | |
It made an operating income of almost $4.2bn (£3.4bn) for the year to 2 October, up 16% on the previous year. | |
That was mainly down to a strong showing for its biggest market, the Americas, where net sales rose 11%. | |
However, in the fourth quarter of its financial year, global sales at existing stores rose by only 4%. | |
That was lower than the 4.9% rise analysts had expected. | |
The fastest growth was in the China and Asia Pacific region, which recorded growth of 23% for the year. | |
Starbucks boss Howard Schultz said its Chinese stores were the most efficient and lucrative. | |
While Starbucks still makes most of its profit in the US, Mr Schultz has said expansion in China will secure its future for "decades to come". | |
Last month, Starbucks announced plans to more than double its stores in China to 5,000 by 2021. | Last month, Starbucks announced plans to more than double its stores in China to 5,000 by 2021. |
Mr Schultz said the company was facing "ongoing economic, consumer and geopolitical headwinds". | |
Mr Schultz, who has been warning of a "seismic shift in consumer traffic" for years, said the popularity of online shopping was keeping people at home and away from main shopping streets or malls. | |
In Europe, the Middle East and Africa, sales dropped by 1% during the fourth quarter, while in China and Asia Pacific, sales were up by 1%. | |
Starbucks operates 25,085 stores in 75 countries worldwide, with 690 new ones having opened in the last quarter. | |