Starbucks grinds out revenue increase but UK disappoints

 
Michael Bow
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COFFEE chain Starbucks pleased investors yesterday posting a rise in earnings per share after releasing results in line with Wall Street’s expectations.

The coffee brewer, which started in 1971 in Seattle, posted net revenue figures of $3.8bn (£2.4bn), up 11 per cent for the three months ending December.

In the UK, the group said the closure of underperforming stores across the country, as well as the sale of some airport stores to licensees – who license the Starbucks brand to run a coffee shop – had led to a decline in revenues from company operated stores. The firm does not break down UK sales in its accounts but posted a revenue figure of $306.1m for Europe, Middle East and Africa, a small one per cent increase compared to last year. Starbucks was slammed this year for its UK tax affairs. It subsequently promised to pay £20m to the UK’s tax authorities to make up for the lack of payments.

The firm opened seven stores across EMEA during the quarter, versus 25 a year ago.