Starbucks raises earnings forecast thanks to U.S. corporate tax cut

(Reuters) – Starbucks Corp said on Thursday that new U.S. corporate tax cuts will boost its bottom line this year but that closely watched sales growth in its U.S.-dominated Americas region missed expectations in the first quarter.

The world’s biggest coffee chain raised its fiscal 2018 earnings forecast to a range of $2.48 to $2.53 per share, excluding items, up from $2.30 to $2.33 per share previously. However, sales at established Americas region cafes in the quarter to Dec. 31 were up just 2 percent, falling short of the 3.3 percent rise expected by research firm Consensus Metrix.

(Reporting by Lisa Baertlein in Los Angeles, Editing by Rosalba O’Brien)