Starbucks China operating margin decreases

The operating margin of Starbucks Corp China decreased despite global record sales, the company's financial report said on Friday.

Starbucks' net revenue for the first quarter, which ended on Dec 30, 2012, increased 11 percent to a record $3.8 billion, while its consolidated operating margin expanded 40 basis points to 16.6 percent. Earnings per share increased 14 percent to a record $0.57 per share.

Net revenue for the China/Asia Pacific segment was at $214.1 million, a quarter-to-quarter increase of 28 percent. The operating margin decreased 60 basis points to 33.7 percent, compared to 34.3 percent in the same period last year.

Starbucks attributed the margin contraction to investment spending to support continued growth in China and a shift in the composition of its store portfolio from licensed to company-operated stores.