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Starbucks sees its profits triple

21 January 10 12:41 GMT

Starbucks is continuing to prove that it has successfully turned its fortunes around as it sees its latest quarterly profits more than triple.

The US coffee chain giant made a net profit of $241.5m (£148m) in the three months to the end of December, compared with $64.3m a year earlier.

Buoyed by extensive cost-cutting work over the past year, the firm has also won back customers in its home market.

Same store US sales rose 4%, their first rise in more than two years.

Job cuts

Starbucks' total revenues for the quarter rose to $2.7bn from $2.6bn a year earlier.

Its results beat market expectations.

The firm has cut thousands of jobs and shut hundreds of under-performing stores over the past two years to trim costs.

It has also introduced new, lower price coffees to win back customers temped away by cheaper rivals.

Starbucks chief financial officer Troy Alstead told the Associated Press news agency that the firm was "extremely pleased with the progress we've made".

The company's turnaround has been led by Howard Schultz, who returned to the chief executive role in January 2008.

He admitted at the time that the company had opened too many branches, which had resulted in stores taking business from each other, and the company's upmarket brand image being tarnished.

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