Business

Starbucks Japan's profit surges

The Associated Press

Starbucks Coffee Japan reported Tuesday surging profits for the quarter through June 30, marking a more than 10-fold improvement from the same period last year as cost cuts helped boost earnings.

It reported profit of 572 million yen for the quarter, up dramatically from 45 million yen the previous year.

The opening of 17 new stores and efforts to cut procurement costs led to the strong profit growth, the company said. The proportion of drink sales, which tend to secure higher profit margins than food, increased, it said.

An unusually hot summer also helped sales, with menu addition Strawberry Cream Frappuccino among the favorites.

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