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[video] Starbucks' Profit Jumps Thanks to Seasonal Items and Lower Coffee Costs

NEW YORK ( TheStreet) -- Shares of Starbucks are rising on Friday after the coffee company reported better-than-expected first quarter profit but sales that missed expectations. After the close on Thursday, the coffeehouse chain reported fiscal first-quarter profit of $540.7 million, or 71 cents a share -- a 25% rise from the same period last year and above analysts' expectations of 69 cents a share, according to Thomson Reuters. Starbucks attributed the higher profit to improved global sales and lower coffee costs, while CEO Howard Schultz attributed improved performance in the Americas' to seasonal beverage and menu items around the holidays.

VIDEO TRANSCRIPT:


Shares of Starbucks (SBUX) are rising on Friday after the company reported better-than-expected first-quarter profit but sales that missed expectations.

After the close on Thursday, the coffeehouse chain reported fiscal first-quarter profit of $540.7 million, or 71 cents a share -- a 25% rise from the same period last year and above analyst expectations of 69 cents a share, according to Thomson Reuters.  

Starbucks attributed the higher profit to improved global sales and lower coffee costs, while CEO Howard Schultz attributed improved performance in the Americas' to seasonal beverage and menu items around the holidays.  Revenue came in at $4.24 billion, a 12% rise from the same period a year ago, but below analyst estimates.

Looking forward, Starbucks increased the high end of its profit forecast for the year through September to $2.67 a share from $2.65.

At last check, shares of Starbucks were climbing on the news.

In New York, I'm Brittany Umar for TheStreet.

Written by Brittany Umar in New York.

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