Starbucks Q3 profit beats estimates despite drop in sales

By
USA Today
July 21, 2009, 10:38 PM ET
1 min read

SEATTLE -- StarbucksSBUX says cutting costs helped it post a fiscal third-quarter profit better than Wall Street analysts expected despite lower sales and slower customer traffic.

The Seattle-based gourmet coffee chain earned $151.5 million, or 20 cents a share, compared with a loss of $6.7 million, or 1 cent a share, a year ago.

Excluding costs for closing underperforming stores and other special items, Starbucks said Tuesday it earned 24 cents a share compared to 16 cents a share a year earlier.

Analysts expected profit of 19 cents s share excluding special items.

Revenue fell 7% to $2.40 billion.

Same-store sales dropped 6% in the U.S. and 5% worldwide. The chain has struggled to keep sales up during the recession.