November 6, 2009
Starbucks' 4Q forecasts suggest that consumers continued to increase their number of visits and spending per visit in the quarter to September 27. Seattle-based Starbucks made a net profit of $150 million in the fourth quarter, compared to $5.4 million last year, despite a 4 per cent fall in revenue to $2.4 billion.
Revenue was impacted by the stronger dollar, a 1 per cent fall in sales at comparable outlets and the fact that the company had 385 fewer stores than in the same quarter of 2008.
But Starbucks still faces strong competition from rivals such as McDonalds and Dunkin Donuts, which have improved their cafe-style offerings.
Starbucks is undergoing cost-cutting: the company saved $210 million in the fourth quarter after wasting fewer products and making its workforce more efficient. It took a $53.2 million restructuring charge to finish leases early on unwanted stores.