James Donald, president and chief executive officer of Starbucks, told CNBC’s “Squawk Box” that he expects the company to finish 2007 “right on target.”
Starbucks, the world’s largest coffeehouse chain, reported net income of $150.8 million, or 19 cents a share, compared with $127.3 million, or 16 cents a share, for the same period a year ago. The consensus Wall Street estimate was 19 cents a share.
“We look at the performance as a great quarter for us,” Donald said Friday. “But it’s even better when you look at we lapped probably the highest quarter in the company’s history last year with 10% comps. We think that we’re poised to finish 2007 right on target.”
In fiscal 2007, Starbucks said it expects to earn 87 to 89 cents a share. It expects revenue to increase about 20% and same-store sales to increase 3% to 7%.
Donald said he wasn’t concerned about the competition, including McDonald's and privately held Dunkin Donuts, moving into the premium coffee sector.