Starbucks quarterly earnings drop by $87.5 Million as consumers rein in spending on non-essentials

[Amerigo Vespucci]

A bitter brew for Starbucks
As American consumers rein in spending on non-essentials, coffee-shop operator posts weaker-than-expected earnings.

http://money.cnn.com/2008/11/10/news/companies/starbucks_earnings/index.htm?postversion=2008111017

By Catherine Clifford, CNNMoney.com staff writer
Last Updated: November 10, 2008: 5:09 PM ET

NEW YORK (CNNMoney.com) -- Starbucks reported weak quarterly earnings and slightly higher sales Monday, as American consumers cut back on the number of expensive coffee beverages they purchased.

In after-hours trading, shares of Starbucks fell 3%, after closing down 35 cents to $10.20 during the regular trading day. In the past year, the company's shares have plunged more than 50%

The coffee-chain operator reported fiscal fourth-quarter operating earnings of $71 million, or 10 cents a share, down from $158.5 million, or 21 cents, a year earlier. Analysts surveyed by Briefing.com had expected the company to earn 13 cents per share in the latest quarter.

After restructuring and other charges, many of them associated with the closing of 600 stores announced in July, Starbucks posted net income of $5.4 million, or 1 cent a share, in the latest quarter ended Sept. 28.

[AllieB]

1. I go to Starbucks less often now.

I've been giving my business to a local coffee house near my work, though they are seemingly always busy.

[Amerigo Vespucci]

3. I buy the whole-bean Starbucks "House Blend" coffee...it's my brand of choice.

I went into a Starbucks about 5 years ago with the intention of purchasing a cappuccino. The cap machine was temporarily "out of order." I needed caffeine. What to do?

I asked what kind of coffee they had brewed. "House Blend." I tried it. Five years later, it's my daily jump-starter.

Barnes & Noble has Starbucks on-site, which means IF you can find House Blend, you get it for 10% off. They seldom, if ever, carry it.

The Starbucks locations sell the 1-pound bag of whole-bean for 10 bucks. Safeway sells the 12-ounce bags for $8.99 when they are on sale.

I've given up all kinds of things in the George W. Bush economy, but my morning cup of coffee isn't one of them. I'm a real coffee snob...I grind the beans fresh for every pot and use Arrowhead water too.

:hi:

[Lerkfish]

2. last time I went it cost me 5 bucks for cup.

I think they've overpriced themselves as much as anything. And , as we now know, they don't pay their help worth crap.
so I think we should investigate the CEO salary.