Starbucks to restate results to show Kraft damages

Packets of Starbucks coffee are seen in a supermarket in Santa Monica, California (file). Starbucks Corp will restate results for the latest quarter to show an operating loss and will issue $750mn in debt after an arbitrator ruled that it must pay $2.76bn for ending its grocery coffee deal with Kraft Foods early. Kraft Foods Inc split into two companies in October 2012, Kraft Foods Group Inc and Mondelez

International Inc. Under an agreement between those two companies, Mondelez will receive all proceeds from the Starbucks-Kraft dispute. Restated results for Starbucks’ fourth quarter ended on September 29 would show a net loss of $1.64 per share, the company said yesterday. The Seattle-based company previously reported a fourth-quarter profit of 63 cents per share.