NEW YORK ( TheStreet) -- Starbucks ( SBUX) 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)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. Follow TheStreet.com on Twitter and become a fan on Facebook.