Starbucks shares close higher on tax announcement
Shares in Starbucks closed higher on the Nasdaq in New York yesterday (December 6th), after the company announced it would concede to pay its UK corporation tax.
There has been public outcry ever since it was revealed the ubiquitous coffee shop chain has paid very little of this duty in the 14 years it has been trading to British customers.
Starbucks paid just £8.6 million in corporation tax over this timeframe, despite UK sales of nearly £400 million in 2011.
The company said the British marketplace is one of the most competitive for espresso, which is why it struggles to make a profit.
Last night, managing director of the firm's UK operations Kris Engskov stated: "Starbucks will commit to paying a significant amount of tax during 2013 and 2014 regardless of whether the company is profitable during these years."
At close of play on Wall Street yesterday, Starbucks shares rose by 5.7 per cent to $53.70 per share.
Find out about the Nasdaq and spread betting strategies at City Index.
From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.