Starbucks Posts Third-Quarter Profit
July 21, 2009 by Mark Ellis
Filed under Business
The ubiquitous coffee giant Starbucks has released its results for the third quarter, beating analysts’ expectations with a larger-than-expected profit. Starbucks has credited a decrease in the amount of money spent on labor, as well as the amount the company spends on dairy products, for the profit, which led to a rise in the value of Starbucks’ stock.
While analysts expected a profit worth 19 cents per share for Starbucks’ third quarter, the company posted earnings of 24 cents per share in a statement released today. Sales have declined to $2.4 billion, marking a 6.6 percent fall, but sales managed to slightly surpass the average analyst expectation of $2.37 billion. This quarter, Starbucks managed to cut $175 million in costs and has raised its saving expectations to $550 million over the course of the year.
Starbucks has struggled with closing costs, spending $168 million to close cafes, and it expects to close 300 more stores this year. The company’s stock has gained 55 percent this year, closing at $15.86 today.
Image: Flickr
