Starbucks (SBUX) was down over 2% much of the day, but rallied into the close. Analysts expected quarterly revenue to come in at $2.42 billion and EPS to run $.21.
As it turned out consolidated net revenues for the quarter were $2.4 billion, a 22 percent increase. But, same-store sales growth was only 4%.
Earnings per share was $0.21, compared to $0.15 per share in the quarter last year.
During the fiscal year ending October 1, Starbucks opened 2,571 new store; 70 percent in the U.S. and 30 percent in International markets.
Cost of sales including occupancy increased to 43.7 as a percent of total net revenues for the 13 weeks ended September 30, 2007, compared to 41.7 percent in the corresponding 13-week period of fiscal 2006. The increase was primarily due to a shift in sales to higher cost products and higher dairy costs.
Wall St. took the same store sales and gross margin news badly and pushed the shares down 4%.
Douglas A. McIntyre
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