Holy Dropping Profits Starbucks!

We were sure it was just a typo, a major one, in a headline by the Associated Press: "Starbucks profit down 97% in the 4th Quarter." Surely there's just an extra 7 in that number...? But no. Starbucks stock was only earning a penny a share after last quarter, largely due to the cost of closing under-performing stores. Starbucks swears if you took out the cost of closing stores, which we thought was supposed to save the company money, not cost it more, the stocks would actually have earned ten cents a share. Still, none of the numbers sound good to us.

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By Abbey in News on November 11, 2008 9:00 AM

Comments [rss]

MonkeyPilot

Maybe people are finally starting to realize that $4 for a cup of coffee might be a bit of an extravagance they can't afford in the current climate.

Troy Morris

A penny? I can buy so much candy now!

rjh

I'm sure even an economic neophyte can understand that the one-time costs of closing stores will hurt for one quarter but pay off in the long run.

swag

It's the price for overgrowth and losing your way and sense of purpose in the process. Meanwhile, the competition continues to grow in the same economic climate. Something is truly sick and wrong at Starbucks.