Starbucks Q2 profit soars

Seattle Cost-cutting and a pick-up in customer traffic helped Starbucks Corp. post an eight-fold increase in its second-quarter profit. Revenue rose 9% to $2.53 billion, up from $2.33 billion. Same-store sales rose 7%, a four-year high.

The increase in customers was Starbucks' first in 13 quarters.

"I think the trends we're seeing in the business are real and sustainable," Starbucks CFO Troy Alstead told The Associated Press.

Starbucks also boosted its forecast for the year's adjusted profit, saying it expects to earn between $1.19 per share and $1.22 per share. That's up from $1.05 per share to $1.08 per share. Analysts had forecast adjusted profit of $1.12 per share.

"Starbucks' second-quarter results demonstrate the impact of innovation and the success of our efforts to dramatically transform our business over the last two years," CEO Howard Schultz said in a statement.

It was the fourth consecutive quarter that Starbucks' profit rose and the second that its revenue did.

The chain said it has earmarked capital expenditures of approximately $500 million for the full year.