Starbucks Falls Short of Expectations

[pennypinch]

People all across the United States have reigned in their spending this year. They have cut-back or cut-out non-essential spending. This includes visits to the coffee shop, Starbucks.

Starbucks has reported weak quarterly earnings and just slightly higher sales Monday. American consumers have cut back on the number of expensive coffee beverages they purchased this year.

Starbucks shares fell 3% after closing down 35 cents to $10.20. This past year the company's shares have plunged more than 50%.

Starbucks have cut 600 stores across the nation.

In addition, they have closed 1,000 positions and also are closing 61 stores in Australia.

[dollardaze]

I wonder how many Starbucks cut prices before deciding to close? It seems to me that more people would still be buying their coffee if the prices weren't so high.

[pennypinch]

I agree with you. You won't be seeing me at the local starbucks having my morning coffee anytime soon. The problem with these kinds of places is that they raise the prices trying to make more of a profit which just ends up making the customers go elsewhere because prices are too high. If they would lower prices, they would drum up more business and make more of a profit.