Starbucks raises full-year profit forecast, shares rise

Starbucks Corp raised its full-year profit forecast and reported quarterly profit and same-store sales that beat Wall Street estimates on Thursday, helped by higher prices of its coffees and ramped up delivery options in the United States.

Starbucks` shares, which have risen about 20 percent this year, rose 2 percent and were set to hit a record high on Friday.

The coffee chain has been beefing up its delivery services in the United States, where the market is overcrowded with restaurants and coffee-shops, especially in urban areas.

It has also been offering healthier beverages in its U.S. cafes and introducing lunch menus, while also focussing on online ordering service through "mobile order and pay" and loyalty programs.

This helped the company report 4 percent growth at established U.S. cafes, its largest market. Analysts were expecting Starbucks to bring in 3.58 percent, according to IBES data from Refinitiv.

Starbucks also raised its adjusted profit forecast for the year to between $2.75 and $2.79 per share from its previous outlook of between $2.68 and $2.73 per share, as it expects growth in operating margins in the Americas.

Net earnings attributable to the company rose to $663.2 million, or 53 cents per share, in the second-quarter ended March 31, from $660.1 million, or 47 cents per share, a year earlier.

Excluding certain items, the company earned 60 cents, 4 cents more than the estimate.

Total net revenue rose 4.5 percent to $6.31 billion, but was slightly below the estimate of $6.32 billion.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)