Starbucks beats view, raises targets

"Consumers are still in a tough place. I don't know that they're going to celebrate the end of the recession any time soon."

Schultz retook the helm in early 2008 and began a restructuring that has included shuttering roughly 900 units, slashing other costs and eliminating waste.

It boosted its direct-to-consumer marketing through rewards cards and online marketing. It also tightened up operations, tidied up its selection of retail items and rolled out new products such as Via instant coffee.

But as Starbucks shrank its store base, competitors like McDonald's Corp and Dunkin' Donuts started selling lattes and other fancy coffee drinks previously found only at Starbucks and neighbourhood coffee shops.

Last November, Starbucks shares fell to $7.06, their lowest since late 2001, as the United States and other countries scrambled to contain a meltdown of financial markets.

On Thursday, Starbucks shares rose to $20.50 in after-hours trading from their Nasdaq close of $19.70.

(Reporting by Lisa Baertlein; editing by Edward Chan, Andre Grenon and Steve Orlofsky)