Starbucks Q4 profit nearly doubles, raises profit forecast
Seattle Starbucks Corp.’s fourth-quarter net income nearly doubled as its revenue rose 17% from a year earlier, handily beating estimates. The coffee giant raised its forecast for its fiscal 2011 profit.
Starbucks reported net income of $278.9 million. Sales rose 17.2% to $2.8 billion. Same-store sales were up 8%.
Next year Starbucks plans to open about 500 new stores around the world, including 100 in the United States and 400 internationally, most of which will be licensed. Globally, the chain will focus on Chinca, where it has experienced double-digit comp-store sales.
For the full year, Starbucks beat its own expectations with earnings of $945.6 million, compared with $390.8 million in fiscal 2009. Revenues for the full year were up 9.5% to $10.7 billion.
Chipotle to open new concept
New York City — Chipotle Mexican Grill founder, chairman and co-CEO Steve Ells is developing an Asian fast-casual concept that he expects to debut in mid-2011, according to Nation’s Restaurant News.
The new concept will be similar in pricing to Chipotle, the report said.
Ells said in a statement, “Since opening the first Chipotle some 17 years ago, I have often thought about how other types of food might fit the Chipotle model.”
“Chipotle is not successful because we serve burritos and tacos,” he added. “Our success comes from finding the very best sustainably raised ingredients, prepared and cooked using classical methods in front of the customer, and served in an interactive format by special people dedicated to providing a great dining experience. And while our Chipotle restaurants will, of course, remain our primary focus, we are also excited to see how this format works with other cuisines.”
Target to open in downtown Los Angeles
New York City — Target Corp. will open a store in downtown Los Angeles, at the 7+Fig shopping center, which has been without an anchor tenant since Macy’s left early last year, the Los Angeles Times reported.
Expected to open in 2012, the store will be located in a combined space on one floor formerly occupied by Macy’s and Bullock’s department stores. It will carry a different merchandise mix, with a heavy emphasis on food and household basics, according to the newspaper.
"It’s really about trying to magnify the relationship that we have had with those urban central core guests," said John Griffith, executive VP property development at Target, in the report. "We believe that as we offer them an alternative that is immediately adjacent to where they work, where they live, that we can increase the depth of that relationship."
Target’s agreement to rent more than 100,000 square feet at the corner of 7th and Figueroa streets is one of the largest retail leases in decades downtown, the newspaper reported.