Recession-hit Starbucks beats quarterly expectations

22nd July 2009, 11:48am

Global coffee chain, Starbucks has today said that cost-cutting measures have been successful, after company profit went up.

In the third quarter ending 28th June 2009, Starbucks earned $151.5m (£92.1m) up from a $6.7m loss in 2008.

Despite this rise in profit, sales continued to fall with same store sales decreasing by 6% in the US and 5% in Europe.

CEO, Howard Schultz explained more about the company's financial position: "The transformation of Starbucks business - including the success of our consumer-facing initiatives and the permanent changes to our cost structure - is delivering improvements in comparable store sales trends and is beginning to be reflected in our financial performance."

The statement added that 'store partners' or employees helped to improve the situation by "embracing the cost disciplines and efficiency initiatives that are enabling us to expand our operating margin".

Related Articles:

• 24 Jul 2009 - Recession busting course for small hospitality businesses
• 08 Jul 2009 - Starbucks gives away 280,000 free pints of ice cream
• 07 Jul 2009 - Dublin airport sees new Starbucks and Burger King open
• 04 Jun 2009 - Starbucks wins barista's tips appeal
• 03 Jun 2009 - Surrey Sports Park to open a Starbucks
• 21 Apr 2009 - BT serves up Wi-Fi at Starbucks
• 06 Mar 2009 - Coffee chains serve healthy eating commitments
• 10 Feb 2009 - Starbucks launches 'value' offer
• 29 Jan 2009 - Starbucks' profits plunge by 69%
• 11 Nov 2008 - Starbucks fourth quarter profits wiped out

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