Shares in coffee shops owner Starbucks Corporation (NASDAQ:SBUX) frothed higher after it announced record fiscal fourth quarter results.
In the US, like-for-like sales were up 4% year-on-year in the quarter ended 2 October, despite a 1% decline in footfall. In other words, the company was able to charge even more for its products this year than last.
The controversial company, known as much for its innovative approach to avoid paying taxes as for its coffee, posted net revenues of US$5.7bn in the quarter, up 16.2% from the corresponding period of 2015.
Net earnings rose 22.9% to US$801mln from US$652.5mln the year before.
"Starbucks Q4 of fiscal 2016 was the most profitable quarter - capping off the most profitable year - in our more than 24 years as a public company," said Scott Maw, chief financial officer of Starbucks.
Net revenues for the whole of 2016 rose 11.2% to US$21.3bn from US$19.2bn the year before, helped a little by the financial year just ended having one more week in it than the comparable year.
Net earnings edged up 2.2% to US2.82bn from US$2.76bn the year before.
The company declared dividends worth 85 cents for the year, up from 68 cents the year before.
“Starbucks' record Q4 and fiscal 2016 financial and operating results in the face of ongoing economic, consumer and geopolitical headwinds, and the significant investments we continue to make in our people and our business, once again demonstrate the power, relevance and resilience of the Starbucks business and brand,” claimed Howard Schultz, who is not only Starbucks' chairman but also its chief executive officer.
Shares were up 3% at US$53.31 in early deals on the results.