Yahoo Finance Starbucks Record Fails To Impress Investors
Shareholders in Starbucks (Swiss: SBUX.SW - news) have headed for the exit despite the global coffee chain reporting record financial figures.
The company, which now operates 23,000 stores in 68 countries, said annual operating profit and net revenues in the year to 27 September rose by 17% - to $3.6bn and a record $19.2bn respectively.
The chain said it served 72 million more customers globally during the 12-month period and that half the 1,800 stores it planned to open during its current financial year would be in Asia.
While it continued not to give a country-by-country breakdown of its performance, it said sales in its Europe, Middle East and Africa division, which takes in its UK business, rose by 4%.
Starbucks' fourth quarter figures - more closely-watched to give a better impression of current trading - met market expectations.
But its shares fell more than 5% in after-hours trading - with analysts citing a weaker outlook for profits in its current first quarter than the market had forecast..
Starbucks has been among the multi-national firms at the centre of an international row over taxes on its profits - not least in the UK where it has previously pledged a £20m contribution following public outrage over its tax arrangements.
Just a week ago, the European Union said the chain would have to pay back up to €30m in "illegal" tax breaks, declaring its arrangements in the Netherlands - where a number of Starbucks firms are based, amounted to Dutch government aid.
The company said the decision contained "significant errors" and it planned to appeal.
It (Other OTC: ITGL - news) insisted it complies with international law, adding that it supported reforms to the global tax regime planned by the OECD.
The proposals, outlined earlier this month, aim to close loopholes which allow multi-nationals to shift profits to countries with the cheapest tax regimes.
Facebook (NasdaqGS: FB - news) was the most high-profile firm recently forced to defend its corporate tax bill in the UK .
The sum, of just over £4,300 last year, was paid on the back of revenues totalling £105m.
