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-$0.12 (-0.56%)
04:34AM (15 mins delay)
Oct 16, 2009 - 1:17 AM EDT
The share price of Starbucks Corporation (SBUX) took a particularly large hit during 2007 and 2008 as investors believed that the company had overextended itself in a premium coffee market that appeared to be under threat. CEO Howard Schultz was put back at the helm of the company in January 2008 and within less than six months had announced the closure of 600 of its US stores in attempt to decrease the cannibalization of its own sales.
The company's most recent earnings, for its fiscal third quarter ended June 28th, reported that net earnings for the 13-week period were $151.5M compared to a net loss of $6.7M in fiscal Q3 2008. Starbucks also saw higher operating margins at 8.5% compared to negative 0.8% over the year-earlier period. However, the company's comparable store sales revenue declined 5%. The company has also taken a more cautious approach to its international expansion as international results were hurt by lower numbers of transactions and declines in the value of each transaction.
Source: Seeking Alpha (Oct 16, 2009 - 1:17 AM EDT)
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