Starbucks profit climbs as US cafes thrive

   
"A lot of people were trading down it appears," said Troy Alstead, the company's chief financial officer, noting that fewer purchases included food.
   
Starbucks also has been embroiled in a controversy over its taxes in the United Kingdom. The company has been doing business in Britain for 15 years but hadn't paid any taxes because of a complex way it calculates profits. Following criticism by lawmakers and a campaign by a protest group, Starbucks said last month that it was working to settle the issue.
   
For October-to-December period, Starbucks Corp. earned $432.2 million, or 57 cents per share. That's compared with $382.1 million, or 50 cents per share, in the year-ago period. Total revenue rose 11 percent to $3.8 billion. Analysts expected a profit of 57 cents per share on revenue of $3.85 billion, according to FactSet.
   
Revenue for the consumer packaged goods segment, which includes Verismos sold in specialty stores, rose 16 percent to $459.8 million. Although Starbucks is working to diversify by building this segment, it still represents a small fraction of the company's overall revenue.
   
Starbucks affirmed its outlook for the year, with earnings expected to be between $2.096 and $2.15 per share, representing growth of 15 to 20 percent from the previous year.
   
Its stock was up 24 cents at $54.81. Starbucks has about 18,000 cafes around the world.