Starbucks says US tax cuts will boost bottom line

Coffee giant raises 2018 earnings forecast to range of $2.48 to $2.53 per share

A Starbucks outlet at Dawson Street, Dublin. Photograph: Alan Betson

A Starbucks outlet at Dawson Street, Dublin. Photograph: Alan Betson

 

Starbucks said on Thursday that new US corporate tax cuts will boost its bottom line this year but that closely watched sales growth in its US-dominated Americas region missed expectations in the first quarter.

The world’s biggest coffee chain raised its fiscal 2018 earnings forecast to a range of $2.48 (€1.99) to $2.53 per share, excluding items, up from $2.30 to $2.33 per share previously.

However, sales at established Americas region cafes in the quarter to December 31st were up just 2 per cent, falling short of the 3.3 per cent rise expected by research firm Consensus Metrix.

Starbucks has expanded rapidly across Ireland in recent years, with the coffee franchise controlled by brothers Colum and Ciarán Butler. The brothers also operate TGI Fridays and Leisureplexes in Dublin and recently acquired the iconic kiosk in Dublin’s Ballsbridge. – Reuters