Starbucks profit plummets by 97 percent

Marc

Hunkered Down for the Duration with a Mask on...
Staff member
Admin
#1
I can say I've never been in a Starbucks, other than passing them in a couple of grocery stores I visit (I'm mainly a tea drinker), and have never bought anything from them, but they must be popular... From MSNBC/AP:
MSNBC said:
SEATTLE - Fewer U.S. customers led to lower sales and venti-sized costs for closing poorly performing stores hurt profit in the fourth quarter at Starbucks Corp., the company said Monday. The quarter’s results came at the end of a transition year for the coffee retailer, in which former Chief Executive Howard Schultz took back the reins of the company to again fill the CEO and chairman posts. Seattle-based Starbucks said profit in the quarter fell 97 percent to $5.4 million, or a penny a share, from $158.5 million, or 21 cents per share. The coffee retailer earned 10 cents per share when the costs from closing about 600 stores in the U.S. and 61 locations in Australia are excluded.
Read more....
 
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Q

qualityboi

#2
I think the article is shows excellent evidence that discretionary spending is way down also that the old CEO may not be that great. The folks that I work with including myself have cut way down on discretionary spending and focusing more on savings. I think its is a trend that may actually hurt the enconomy more.
 

BradM

Staff member
Admin
#4
Interesting... IMHO, I can't imagine how they can make a profit, with a store every fifty feet. Even in the best of times, I cannot conceive that many people drinking $5.00 coffee.

Too, the dropping profit is interesting, as I don't think (correct me if I'm wrong) they have had a new competitor come up as of late. Well.. I'll correct myself. I think a new indirect competition has emerged within existing channels. More outlets are 'beefing up' their coffee selections and the quality. This may be slowing down the "coffee monopoly" Starbucks feels they have.
 

Marc

Hunkered Down for the Duration with a Mask on...
Staff member
Admin
#5
Maybe I'll start drinking coffee regularly and buy some at Starbucks from time to time to help the economy... :lmao: But - That will hurt the tea industry, so I guess that won't help... :bonk:
 
J

justncredible

#6
I love starbucks, I get the iced coffey with a shot of expresso, $3.30 for a large. I think the reg large cup'o coffey is still under $2.00, and for a great coffee. I think the gimmicks they try to sell and the awful music they pipe in is a reason people are turned off. Instead of focusing on the core they are trying to make it a yuppi hangout.
 

SteelMaiden

Super Moderator
Super Moderator
#7
Personally, the mickey d's down the road from me has better coffee than I've ever bought at a Starbuck's, but as I tell my children, if you're not man enough to drink it hot and black, you probably have some growing up to do before you're old enough to drink coffee.:lmao:

I buy my own coffee and make it in my coffee pot at work, I'll probably be that person that puts an entire industry out of work...I'm so ashamed of myself!:mg:
 

Stijloor

Staff member
Super Moderator
#8
I love starbucks, I get the iced coffey with a shot of expresso, $3.30 for a large. I think the reg large cup'o coffey is still under $2.00, and for a great coffee. I think the gimmicks they try to sell and the awful music they pipe in is a reason people are turned off. Instead of focusing on the core they are trying to make it a yuppi hangout.
I do not buy the gimmicks.
I like the music.
I am not turned off.
I think they make good coffee.
I am not a Yuppie. ;)

Stijloor.
 
J

justncredible

#9
:mg: you like the music....:lol:

I have slowed down tipping the workers, that is due to useing a pre-paid card so I can use the internet while there. So instead of paying cash I run the card and just have them throw on a $20 every now and then. The customer service is not to great either, I now have 2 starbucks trained not to mention venti when I order a large. I have to add my own cream, which should be offered. Also they should have a splenda pump thing. Still they have the best coffee, macD's is the worst coffee I have ever drank. I have tried it twice and thrown it away.
 

Brizilla

Quite Involved in Discussions
#10
I do not buy the gimmicks.
I like the music.
I am not turned off.
I think they make good coffee.
I am not a Yuppie. ;)

Stijloor.
I don't buy the gimmicks either,
the music is irrelevent to me.
It's Ok, I like Dunkin Donuts better,
I am not a Yuppie I am a Ouppie.
That would be an Older Urban Professional, not someone with...other problems. :notme:
 
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