Starbucks returns to winning ways with record Q1 turnover

Coffee giant Starbucks has returned to winning ways after profits dipped last year, posting record turnover during its first quarter.

Starbucks, which last year upped its long-term store target to 40,000, saw turnover in the quarter ended 31 December 2006 soar 22% to $2.4b (£1.22b).

The coffee chain giant opened 728 new cafés during the period and said like-for-like sales, which strip out the effect of new openings, grew 6% during the period.

Net earnings increased 18% to $205m (£104m).

Starbucks also achieved record quarterly activations of its new cashless payment card, with $287m (£146m) credit put on the cards by consumers during the period.

Last November Starbucks announced a fall in profits during its fourth quarter year-on-year with a drop from $123.7m (£65.5m) to $117.3m (£62.1m), which it blamed on the introduction of new accounting measures.

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By Chris Druce

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