Starbucks Corporation (SBUX – Analyst Report), as expected, recorded softer profits in the fourth quarter of fiscal 2015 than the third due to higher employee and digital investments. Revenues, however, were exceptionally strong driven by another stunning increase in traffic trends in the U.S. – thus ending an outstanding year on a solid note.

The board of directors also approved a 25% increase in Starbucks’ quarterly dividend to 20 cents per share from the current 16 cents.

However, on a slightly negative note, the outlook for the upcoming quarter – the holiday quarter – fell short of market expectations.

Earnings Miss

Adjusted earnings of 43 cents per share missed the Zacks Consensus Estimate of 44 cents by 2.3%. Earnings were, however, at the higher end of management’s expected range of 42 cents to 43 cents.

Earnings grew 16% year over year as solid top-line growth offset lower margins.

Adjusted earnings exclude costs related to the acquisition of its Japanese joint venture (JV), debt extinguishment-related charges and a tax benefit. In fiscal second-quarter, the coffee giant took 100% ownership of its Japanese JV — Starbucks Coffee Japan, Ltd. — per a deal announced in September last year.

Management had warned during the third-quarter conference call that earnings growth will be lower than the third quarter due to relatively higher employee investments, mainly in the U.S.

Strong Sales Growth

Total second-quarter sales of $4.91 billion increased 18% year over year and beat the Zacks Consensus Estimate of $4.89 billion by 0.5% driven by robust comps.