Starbucks used to make a lot of money selling coffee-like sugar bombs that people loved and would pay for with cash from their HELOCs. Those days are over, but there’s good news. Starbucks has remembered how to sell coffee and is now doing so in a profitable way.
“Continued innovation, the successful enhancement of the customer experience and a transformed, more efficient cost structure have brought Starbucks to a significant milestone — a return to positive growth,” said Howard Schultz, chairman, president and chief executive of the company, in a statement.
0:00 /2:08Starbucks: Economic barometer?
During the recession, Starbucks closed 800 stores in the U.S. and 100 international locations, laid off workers, revamped its food menu and tinkered with drink prices. The company’s cost-cutting initiatives saved $580 million in 2009.
Starbucks’ same store sales (important for chain retailers) were up 4% last quarter.
Why are you going to Starbucks again? Did they do something you liked? Or did you get a job?
Starbucks posts grande earnings [CNNMoney]