Starbucks Back to Brewing Big Profits

Starbucks saw its first-quarter profit rise nearly eight-fold and said it expects 2010 earnings ahead of estimates.
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NEW YORK (

TheStreet

) --

Starbucks

(SBUX) - Get Report

appears to be back on solid footing as its first-quarter profit soars, marking its fourth straight quarter of gains.

During the quarter, the coffee retailer earned $217.3 million, or 28 cents a share, compared with $25 million, or 3 cents, in the year-ago period. Analysts expected Starbucks to earn 25 cents a share.

Revenue increased nearly 9% to $2.53 billion from $2.33 billion, while same-store sales rose 7%.

Looking ahead, Starbucks foresees full-year earnings between $1.19 and $1.22 a share, higher than Wall Street's estimates of $1.12.

Earlier today

McDonald's

(MCD) - Get Report

also reported

a 11% jump in its first-quarter profit

, boosted by sales of coffee. During the quarter the fast-food chain rolled out a new line of lower-priced frappes, putting it in even closer competition with Starbucks.

-- Reported by Jeanine Poggi in New York.

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