In the first fiscal quarter, the key sales for food & beverage companies have not showed a shining yet until the news for star bucks, i.e., earnings of this company were released. According to the report submitted by the Starbucks Corporation itself, the profits of the company have jumped up to 13 percent in the first fiscal quarter of the year. This made the shares of the company to move up by 4 percent.

Sales picture of the Starbucks Company in the market is also growing gradually. Now number of consumers of Starbucks is more than any other beverage company in the world. The key sales figure of Starbucks has improved in USA. Even in Asia, the market of Starbucks is spreading, certainly for china; the company has experienced tremendous growth.

Other companies of food & beverages are not being able to catch the pace of the company. Generally, this quarter is always the highest sales quarter for beverages and consumption companies.

According to the Starbucks Corporation, the company’s earned profit was completely what the company was expecting to earn this season. Still, the total revenue has backlashes from what the market analysts was forecasting about Starbucks.

In this fourth quarter season, Starbucks Company was expected to make revenue of more than $4 billion in the fiscal first quarter. The company could not cross this margin. Its total revenue stood at $3.8 billion for the first earning season of the year.

This new profits of Starbucks jumped up because of the total global sales of the products of this beverage company rose in the beginning of the year. Certainly for USA, the cafes of USA saw the demand of Starbucks to rise up to 6 percent. Also for the key sales of Starbucks or the retailer sales of Starbucks for individual consumers, the rate increased up to 7 percent in USA.

The largest rise in the consumption of Starbucks has been witnessed in Asia for the first fiscal quarter earnings season of the year. In Asian countries, the consumption rate of Starbucks rose up to more than 11 percent.

But if we take the total global market of Starbucks & all the regions in to account, we will see that although the market consumption of Starbucks have rose in USA and Asia, but in Europe, the company is having a soft spot. According to the Starbucks Corporation, the product consumption rate in Europe has almost seen a decline of 1 percent in Europe.

They are saying that the rush of consumers in the cafes for Starbucks have not decreased, but the amount that was consumed by each consumer for Starbucks have declined. This impacted some of the profits of the company.

According to the chief executive of Starbucks Corporation, Howard Schultz- “Despite a backdrop of weak consumer confidence and an overall weak global economy, Starbucks has been able to maintain its recently garnered momentum”

Starbucks Corporation is happy to be at the milestone margin of the company as the company’s earnings trends faced a setback in last June. Analysts say that the company has picked up the pace sooner than expected.

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Category: Finances
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