This isn't the first time I've harped about the new precedents Starbucks
You might guess you're probably in for it when a company uses this kind of headline: "Starbucks Takes Significant Actions to Position the Company for 2009 and Reports Third Quarter Fiscal 2008 Results." Not exactly a return to coffee romance, but it is heartening that Starbucks kept its 2009 guidance for earnings of $0.90 per share to $1.00 per share as it works to cut costs and put the brakes on U.S. store growth.
Starbucks reported a third-quarter net loss of $6.7 million, or $0.01 per share, compared with last year's profit of $158.3 million, or $0.21 per share. Revenue increased 9% to $2.6 billion.
Unfortunately, Starbucks didn't even give a specific figure for its quarterly same-store sales in its press release (shame, shame), simply stating they decreased in the mid-single-digit range, with a slight deterioration from the previous quarter because of -- you guessed it -- slow U.S. store traffic.
These aren't joyous tidings, yet I still believe Starbucks is a value (as much as I can also admit that more bearish folks make solid points investors must weigh). However, closing stores and focusing on profitability, matched with my belief that much of the weakness seems macroeconomic (and not because the Starbucks brand is actually busted), consoles me for the long term.
For those who turn their noses up at the sweet taste of a caffeinated value stock, though, there's always Green Mountain Coffee Roasters
After market close today, we'll see how another caffeinated company, Peet's