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Starbucks Earnings Show Us the Amazing Benefits of Pricing Power (SBUX) | The Motley Fool

Investors largely cheered the latest report from Starbucks (NASDAQ: SBUX  ) . Shares of the coffee giant rose 6% and hit a record last Friday due to better than expected fiscal first quarter earnings. The company grew revenue and profits, and the solid quarter capped off a very successful 2014. Starbucks reaped the benefits of its aggressive pricing strategy enacted last year, which was met with a good deal of controversy at the time.

Critics contended that consumers don’t take price hikes lightly, and that it was foolish to increase prices and risk alienating customers in an economy that remains fragile for so many. However, this argument was proven dead wrong. Here’s how Starbucks’ pricing strategy directly led to its outstanding earnings results.

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Starbucks Earnings Show Us the Amazing Benefits of Pricing Power (SBUX).

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