Starbucks Begins Turnaround

NEW YORK (TheStreet) -- Starbucks(SBUX Quote) profit skyrocketed in the fourth quarter, bolstered by lower costs.

During the quarter, the company earned $150 million, or 20 cents a share, compared with $5.4 million, or 1 cent, in the year-ago period.

Excluding restructuring costs the company actually earned 24 cents a share, better than the 21 cents analysts forecast.

Revenue slipped 4% to $2.42 billion from $2.52 billion last year, while same-store sales inched down 1%. The company said more customers are returning to their coffee shops.

Sell Starbucks!: Against the Grain

Starbucks has closed stores amid the recession in an effort to combat lower customer demand. Recently it has also had to contend with new competitors like McDonald's(MCD Quote) McCafe.

Looking ahead, Starbucks expects to see EPS 15% to 20% higher than fiscal 2009 earnings of 80 cents a share.

Shares of the coffee retailer are rising 2.5% to $20.28 in after-market trading.

-- Reported by Jeanine Poggi in New York

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