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Starbucks profits soar with growth in China, LivingSocial

The coffee chain posted a net income of $359 million, compared to $358.5 million in the same period last year.

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Starbucks announced that its profits had outpaced last years'. (Oli Scarff/Getty Images)

Starbucks posted big profits Thursday and announced the opening of 1300 stores next year.

The coffee chain posted a net income of $359 million, compared to $358.5 million in the same period last year.

The New York Times reported that Starbucks' revenue also jumped 11 percent, to $3.36 billion.

“It was clearly the best fourth quarter Starbucks has ever delivered,” said Troy Alstead, the company’s chief financial officer, according to the Times.

The spike in growth was based on a number of factors, including stronger sales in China.

Starbucks also brought back its "treat receipt" deal for customers returning in the afternoon for a cheaper coffee if they purchased something in the morning.

LivingSocial daily deals also worked to bring in new customers.

The chain, with 18,000 stores in 61 countries, said that it would be opening 1300 more by the end of next year, according to the Los Angeles Times.

Starbucks opened its first three stores in India last month.

The chain has faced controversy lately in Europe after the UK government claimed that it had not paid its taxes.

The Guardian said that an investigation by Reuters found that the company made a $40 million profit in Europe in 2011, but had filed accounts that showed a $60 million loss.

Starbucks has dismissed the allegations but the controversy continues.

http://www.globalpost.com/dispatch/news/business/121101/starbucks-profits-soar-growth-china-livingsocial