Starbucks (SBUX): Coffee Costs Give Margins Another Squeeze

Starbucks (NASDAQ: SBUX) retrained most of its store workers last week. Howard Schultz, the returned founder and CEO, has replaced a number of the lame-brains in senior management. It would be hard to tell from the stock price that any of this was more than wasted energy. The shares dropped 10% in February to finish at $18.71. Wall St. understands that with slowing growth in the US, Starbucks earnings are still exposed to poor year-over-year comparisons as the quarters are reported during 2008. But, the company may have a more serious problem. The cost of milk has gone up over…
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Original Source

  1 March, 2008| Economy | @ 17:33

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