Ad-Express and Daily Iowegian, Centerville, IA

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October 30, 2013

Starbucks profit rises 34% on pumpkin lattes

— Starbucks, the world's largest coffee-shop chain, said fourth-quarter profit rose 34 percent as it attracted U.S. diners with seasonal drinks and new pastries.

Net income in the three months ended Sept. 29 increased to $481.1 million, or 63 a share, from $359 million, or 46 cents, a year earlier, the Seattle-based company said Wednesday in a statement. Analysts estimated 60 cents a share, the average of 27 projections compiled by Bloomberg.

Chief Executive Officer Howard Schultz has been pursuing new avenues of growth, including higher-quality bakery food and tea, as the company opens more stores across the U.S. Restaurants that cater to higher-income consumers, such as Starbucks and Chipotle Mexican Grill Inc., are outperforming McDonald's Corp. and other less-expensive fast-food joints.

Sales at Starbucks stores open at least 13 months increased 8 percent in the Americas. Analysts estimated a 7.1 percent gain, according to Consensus Metrix, a researcher owned by Wayne, N.J.-based Kaul Advisory Group.

Starbucks fell 1.1 percent to $79.87 at 4:09 p.m. in New York. The shares climbed 51 percent this year through the close of regular trading today, compared with a 24 percent gain for the Standard & Poor's 500 Restaurants Index.

 

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The Iowegian wants readers to think about the solicitation ordinance that will prevent groups or individuals from entering a roadway to solicit money. The Centerville City Council in June by a 5-0 vote passed the first reading of just such an ordinance. Public pressure and during a subsequent special meeting, the council voted 3-2 to table the ordinance. A second special meeting to discuss the solicitation ordinance is scheduled for 5:30 p.m. Thursday, Aug. 7 at City Hall. So, the question of the week is, "Do you or do you not support the ordinance to prevent solicitation of funds in city streets?"

A. I support the ordinance
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