After a string of acquisitions in recent years to build on its core business, Mr. Schultz indicated Wednesday that the company would hold off on any additional purchases in the near future, noting that the company has “enough to handle.”
To build its packaged-goods business, Starbucks plans to let customers earn points on their My Starbucks loyalty card starting next year when they purchase Starbucks bagged coffees in supermarkets and other outlets. Customers currently earn points only when they make purchases in Starbucks stores.
The picture isn’t rosy around the globe, however. Europe remains a sore spot for Starbucks, with a key sales figure falling in the region 1 percent during the latest quarter. In an effort to boost results, the company has been closing underperforming stores and licensing of some of its cafes in the region.
In the United Kingdom, Starbucks is also embroiled in a row over its taxes. The company has been doing business in Britain for 15 years and has 700 outlets but it has yet to record a profit — and therefore pay any taxes.
Starbucks says this is due to a complex process where its taxable profits in the U.K. are calculated after royalties paid to its European headquarters in the Netherlands have been deducted.
Following criticism in the U.K. Parliament and a campaign by protest group U.K. Uncut, Starbucks said this week that it was reviewing its tax approach.
AP reporters Jill Lawless and David Stringer contributed to this report from London.