Posted on 04/23/2008 6:13:38 PM PDT by kiriath_jearim
Starbucks, the coffee house chain, on Wednesday blamed a “sharp weakening” in the consumer economy for an unexpected decline in its US sales, sending its shares plunging more than 10 per cent in after-hours trading.
Howard Schultz, who returned to the role of chief executive in January, said “the current economic environment is the weakest in our company’s history”, citing the housing slump and rising energy and food costs.
The company said conditions were particularly bad in California and Florida, which account for 32 per cent of its retail revenues and have been hard hit by the slump in the US housing market.
Starbucks said comparable sales at its US stores experienced a mid-single-digit percentage fall during the quarter that ended on March 30. It said it expected to earn 15 cents a share in the quarter, down from 19 cents a year ago and less than the 21 cents expected by Wall Street analysts.
Starbucks reported its first ever fall in US comparable sales in the quarter ending on December 31, with sales down 1 per cent.
The company said it expected its full-year earnings per share to be “somewhat lower” than it reported in its 2007 fiscal year.
It said it was not providing a more detailed forecast “due to lack of visibility into near-term economic conditions”.
Mr Schultz said the company was committed to a series of initiatives announced last month aimed at revitalising its US stores, including a new coffee blend.
It also has embraced old-school direct marketing methods, such as coupons, after launching its first US television advertising campaign over the Christmas holiday.
Starbucks’ shares fell to $15.88 in after-hours trade.
Amazing how Apple could sell thousands of computers, iPods, and iPhones and have a gang-buster quarter when Starbucks says the economy is so bad that they can’t sell coffee. Something isn’t right here.
Wonder how much those libs from Seattle have given to Democrat candidates so far, because there certainly hasn’t been a decrease in the money pouring in to Obama and Hillary’s coffers. They set new records every month while whining about the terrible economy and raking in the cash.
I guess that since people won’t pay $5.75 for a triple shot turbo vente latte with soy milk no foam is a sure sign the apocalypse is upon us.
Don’t you know that BUY BLUE is whining right now.
Then why is there always a line to the door?
INCREDIBLE! The sheeple have discovered that a stinkin’ cup of hot water isn’t worth no 6 bucks?
Infinite supply of idiots?
Starbucks Frappuccino
2 shots (3 oz.) espresso
1/4 cup granulated sugar
2 1/2 cups low-fat milk
1 Tbls. pectin OR 1 tsp. pectin + 1 tsp. arrowroot
-Stir sugar into espresso. Cool mixture.
-Stir milk and pectin into espresso mixture until pectin is dissolved.
-Fill a glass with ice and either serve mixture over ice, or pour glass contents into blender and blend for 30-45 seconds.
VARIATIONS: Mocha: + 1 pinch cocoa powder. Chocolate Brownie: + 1 pinch cocoa powder and 2 Tbls. chocolate chips. Orange Mocha: + 1 pinch cocoa powder and 2 Tbls. orange chocolate chips. Rumbuh: + 2 Tbls. crushed chocolate cookies.
NOTES : No espresso? Use coffee that has been run through coffee maker twice.
Starbucks Heath Bars
3/4 cup butter
3/4 cup margarine
1-1/4 cup white sugar
1-1/4 cup brown sugar
1-1/2 tsp. baking soda
1-1/2 tsp. salt
1 T. vanilla
3 eggs
In large bowl combine above ingredients.
Add:
4 cups all purpose flour
Mix well. Then add:
12 oz. pkg Nestle’s chocolate chunks
12 oz. pkg Nestle’s white chocolate chips
8 Heath bars, coarsely chopped
Mix well and spread batter in greased jelly roll pan (15X19). Bake at 350 for 20-25 minutes
Because it takes them 20 minutes to make a cup of coffee?
I love the way you say it!
Make mine Nescafe Classico- Walmart, <$5 per jar. Lasts me a month.
Remember that ploy about a month or so ago about shutting down all stores for X number of hours while they retrained their employees? Well, their attitude still sucks and they still get orders wrong. Starbucks was renown for the friendliness of their employees but no more, you get the same service as you do at a 7-11 for a lot more $$$. Their coffee is good but not the best and, personally, for my espresso or cappuccino I prefer Lavazza (Italian brand). It’s the best.
Finally, somebody who won’t pay $3.75 for a cuppa joe!
Holy cow! thats more sugar than I use in one month of coffee. No wonder Americans are bloated diabetics.
Because sales in So Cal are down 15%.....and CA and FL are 33% of volume for SBUX
>>>Starbucks reported its first ever fall in US comparable sales in the quarter ending on December 31, with sales down 1 per cent.
A Starbucks on every corner in Seattle? Three on every concurse in the airport? Going into Japan, the tea capital of the world? Who is in charge of looking a marketshare and store locations?
Guess the old age adage of “You Can't Get Enough of a Good Think” doesn't hold water. But then they don't really have good coffee.
I don’t drink them myself...but those Heath Bars are to die for. ;)
I freeze leftover coffee (when there is any) in ice cube trays. Then I blend them, a little milk, a packet of Splenda and some cinnamon for an afternoon pick-me-up.
The whole point is that this stuff is so EASY to make at home, I can’t believe they ever built a business around froo-froo coffee in the first place...but there are plenty of people out there that don’t even know how to make a pot of coffee, LOL!
What you said. No DD near me, but was recently in the Chicago area and had to have my DD fix every day. Damn fine coffee.
Subprime mortgage idiots looking for second job?
SoCal and Floriduh is getting too damn hot to drink coffee now. Monster, Amp or Red Bull are more refreshing in the summer mornings. At about $2 bucks a can. Actually cheaper.
Duncan Donuts is my favorite followed closely by Eight ‘o Clock coffee.
I think about once a month Publix supermarket has Eight ‘o Clock on sale two for one. And at DD you can get two ONE POUND bags (vs 12oz in the supermarket) for $10.99.
Starbucks? I never could figure out how people drink that stuff. Especially with a hangover.
EXACTLY....”overextended”...and the competition from little Mom & Pop coffee shops (drive thru) doesn’t help. But, hey, now they aren’t charging for soy milk on my soy mocha because I give them a “Starbucks Card” that we got from change at the change machine. Can’t remember the name of the change machine.
Dunkin’ Donuts is wading into the Dallas/Fort Worth market like a tornado in the coming months/couple years... they’re going to put many dents into SBUX “armor.”
I’ve drank one cup of Starbucks swill. Never again, my week old boiled rot coffee tastes better.
I had gone often to a Starbucks that is located in a Barnes and Noble book store. I would get there teas which were the best for hot drinks, but if it was not for the membership with Barnes which discounts for example a small cup of tea for $1.37 instead of 10 cents more, I would not go to there.
I finally figured out why Starbucks is popular where I live in San Jose compared to Dunkin Donuts.
I grew up with Dunkin Donuts in Texas, but they don’t have any in San Jose. There used to be 1 many years ago, but it closed.
Now Starbucks is everywhere in California. On the way to my daughters school, I go by about 3 and there are at least 3 more that I can go a little out of the way to go to. It’s like there is a Starbucks on every corner.
Personally, I would love to see some Dunkin Donuts around here. They had this one chocolate filled donut that I loved.
Where are Dunkin Donuts mostly located? I know they are in Texas, and not California. I just don’t know where you can get them.
They are mostly located in the Northeast. They started in Mass. where you can usually find one on every corner. When we go up to visit relatives my wife usually bitches a lot because I want to stop at each one I see ;)
A few exist down in Florida where I live. The coffee is great, the donuts are so-so, mainly because they are made elsewhere and trucked in, so unless you get ‘em in the morning - meh. And the service is OK, as long as you’re not in a hurry.
Now they are starting to sell other “toasted” eats. Not sure how that’s working in the Northeast where the stores are much busier than here but they had getting you a donut and coffee FAST down to a science. I think the new food may not go over well.
Near as I can tell there aren’t *any* in CA.
Now, we know why Starbucks is more popular in California, no competition.
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