Starbucks Finally Losing Money


For the first time since it went public in 1992, Starbucks has posted a loss. The overcaffeinated coffee chain lost 1 cent per share in the third quarter; in the same period last year, it made 21 cents per share. Starbucks also plans to cut 1,000 jobs in its “leadership structure and its non-store organization,” meaning baristas aren’t the only ones on the dole. But investors are forgiving folks: Starbucks shares were up 5 percent yesterday anyway, after the company announced that it would close more stores than it would open. That sound you hear is the indie-coffee-shop owner cheering.

Starbucks Posts Loss [Reuters]
Starbucks Third-Quarter Fiscal 2008 Results [Official statement]
Related: Starbucks Shortage in Midtown!