Starbucks Posts First Quarterly Loss in 15 Years
Starbucks just posted a 3Q loss — its first quarterly net loss in more than 15 years.
What’s to blame? Several things:
- The company is in the middle of closing about 600 under-performing stores.
- The company has also announced plans to cut about 1,000 office jobs (7% of the entire workforce).
- U.S. consumers have stopped spending a much on gourmet coffees.
- Similarly, UK spending has decreased, and growth in Canada has slowed.
- Competition from chains like Dunkin’ Donuts and McDonald’s, which have introduced their own gourmet coffee lines.
- Dairy prices have risen.
It’s all (likely) temporary, though.
In the meanwhile, they’re looking to the future: Sorbettos, Vivannos, a new line of of healthy foods (featuring whole grains and lean protein), and a new emphasis on the (recently re-launched) “Starbucks Card.”
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