22nd Jul 2009 - 00:00
Abstract
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".