Autogrill, Starbucks Extend Contract, To Open 120 Stores By 2020

Italian retail and catering operator Autogrill SpA (AGL.MI) said Thursday it has extended its existing management contract with Starbucks Corp. (SBUX) for another 10 years, and the two companies are planning to open 120 stores in North America over that period.

Under the agreement, Autogrill will manage Starbucks shops and concessions in U.S. airports and highways until 2020, the Milan-based company said.

Autogrill already operates more than 360 Starbucks shops and outlets worldwide. In 2010, Autogrill generated revenue of EUR340 million from Starbucks shops, the company said. The contract extension will generate around EUR4 billion of revenue over the next 10 years, according to a Dow Jones calculation.

Autogrill Chief Executive Gianmario Tondato Da Ruos said in a statement that the two companies will be able "to explore new mutually beneficial growth opportunities."

Autogrill's unit HMSHost signed the first agreement with Starbucks in 1994.

-By Sabrina Cohen, Dow Jones Newswires, [phone]; [e-mail]