BCE's Starbucks Watch

Starbuck's Stock Reach 52-Week High

Shares of Starbucks Corp. reached a new 52-week high today, after the world's largest specialty coffee retailer reported its quarterly earnings rose 20 percent on strong sales of its winter holiday drinks. For the 13 weeks ended Jan. 1, Starbucks said it earned $174 million, or 22 cents per share, up from $145 million, or 17 cents per share, in the comparable period a year earlier. Starbucks' stock rose $2.72 per share in early trading on the New York Stock Exchange, surpassing the previous 52-week high of $32.46. The eggnog latte proved so popular a year ago, barristas started serving up a chai tea version of the wintertime treat this past holiday season, CEO Jim Donald said Wednesday as the upscale coffee merchant reported its quarterly profit.

Michael Casey, chief financial officer, also said Starbucks sees enormous growth potential in China, where 50 new stores opened over the past year, bringing the country's total to 221. Casey said he expects China could one day have several thousand stores. Donald said the company also has high hopes for Brazil, Russia and India, three countries where it doesn't yet have any stores. Starbucks said it opened about 560 new stores in the latest quarter, bringing the number of its stores to 10,801 in 37 countries.

The company said it expects to open approximately 1,800 new stores globally over the next year, about 1,300 of them in the United States and 500 internationally. "We have never been more enthused or confident about the way in which we have been received and the ongoing profitability of the international business," Starbucks Chairman Howard Schultz said in a conference call with financial analysts.