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Starbucks to restate results to show loss from Kraft damages

Wednesday, 13 Nov 2013 | 7:07 AM ET

Nov 13 (Reuters) - Starbucks Corp said it would restate fourth-quarter results to show an operating loss of $2.12 billion to reflect damages related to its dispute with Kraft Foods.

An arbitrator ruled on Tuesday that Starbucks must pay $2.23 billion in damages plus $527 million for interest and legal fees for ending its packaged coffee supply agreement with Kraft at least three years early.

Starbucks said on Wednesday that it would show a loss of $1.64 per share for the quarter ended Sept. 29.

Mondelez International Inc, which was spun off from Kraft in October 2012, will receive all proceeds resulting from the ruling.

Based on the rules of binding arbitration, Starbucks cannot appeal the decision.

(Reporting by Aditi Shrivastava in Bangalore; Editing by Kirti Pandey)

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