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January 20, 2010


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Coffee Soldier

Good news for once! Maybe the 18 month transformation has begun to pay off!


Awesome! Go Starbucks!


Seattle's Best Latte drinks in the grocery stores...hahaha....lower price points.

Schmidt, Jingle Heimer

The PE ratio is extremely high when compared to the industry standards and the competition. Compare SBUX PE ratio to that of YUM/MCD. The most evident and unappealing sign to an investor is high PE ratios because they want a return on their investment...not putting $ into a company for it to sit and not earn interest(and the possiblility of losing value). Bank accounts will earn interest and be more secure. If you're in the dark about all this...take a financial analysis course-it's interesting.


Again I ask the question, with this report will the company give back to the employees anything that has been taken away in the last year. Howard's own words say never.
"Cost-cutting measures — including layoffs, store closings and methods to waste less milk and coffee in stores — also helped the bottom line. They saved the company $580 million, 90 percent of which will be permanent", Mr. Schultz said. This also includes labor on the floor to service customers, raise freezes, vacation accrual, personal days, higher insurance premiums (that just means the company pays less per employee to compensate the insurance coverage which is less). "Luster" vs, "LEAN" who will win, certainly not the employees.

Can't pull the wool over my eyes

Howard says the luster is back on the brand. I think not. Customer service, product quality and store cleanliness are no where close to where it was in the past. The only reason the results are where they are is because of the huge cost cutting primarily on the backs of the partners that where laid off, many of them vetran partners that got the company to where it was pre 2007. If you are proud of that then you have a problem. Yes something had to be done but don't gloat about your "success" in the press. Not once do they mention the sacrifices of the laid off partners, like myself, who have been out of work in some cases for over a year. Let's face it, Starbucks has turned into just another fast food chain that has to scrutinize and squeeze every penny in order to have hopes of making a profit. If you enjoy that environment then have it current partners.

SBUX Alum Bill

@ Schmidt, Jingle Heimer:

You're absolutely right about the high PE ratio. It's especially surprising to see that kind of a ratio for a mature company that is well beyond its high-growth phase. I don't see SBUX as a great investment at the current stock price, but the company has certainly pulled out of its tailspin & the worst days are probably over.

The high PE ratio should also put to rest any talk of a buyout by Pepsico (or any other potential suitor). The cost to the acquiring company would simply be too high.

I'm not a fan of Starbucks, but I have to admit that this financial news is good for the company. It's also good for the partners who own stock or hold stock options in the company.

Jason Coffee

Time will tell.

Jason Coffee
Coffee Cup News


Once, SBUX used to be a coffee company.

I remember being "into" the brand.

I remember reading "pour your heart into it," about how sometimes one had to bend to give customers what they wanted (non-fat milk,) but that SBUX would never be driven by stock prices and wall street demands.

I remember reading how employees were "partners," how they shared in a company's success.

When I was an hourly partner, back in "the day," that was true. I was proud to be a part of it. After 1 year of working there, I took my hard-earned two weeks of vacation.

Now, an hourly parter can look forward to a year of hard labor -- let's face it, it may not be intellectually demanding, but a busy store is indeed hard work. -- and then, before the next year, ZERO vacation!

After two years, instead of twelve days' PTO, an hourly partner will have a single week.

It's just one example, but it's a glaring one.


Increased peformance?

A result of 1000 closed stores
1500 laid off employees
Reduction of inventory
Reduction of FT and PT hours / employees


Yes increased performance! We sold the snot out of VIA, Whole Bean and Promo Bevrages this past quarter. Usually @ 200% to target on VIA (a product with a 75% mark up). We did all of this in my store with -2.2% VTI and a Customer Voice Osat @ 83% (real score, not BS cheating) and my partners are all smiles.

We are also ready for a 90% or better on QASA.

The teams I worked with 3-5 years back could NOT have achieved this. We didn't know a thing about achieving results then.

I don't know about you Pete, but I call this increased performance!

a customer

Northwest - sure the partners of 3-4 years ago might not have been as results-oriented, but they didn't need to in order for the company to make great money. Problem is that Starbucks outgrew it's natural customer base - good spenders, appreciate quality, not price-sensitive, etc. Just not enough of that type of customer to support growth. A better experience back then I think, but no way to change it today.


what the "f" do u idiots want? it's unbelievable what schultz has done in a year and a half, shut up, take a step back, and realize the miracle that has taken place.

nobody else is putting up these numbers in this climate, nobody. gosh u people make me sick

Can't pull the wool over my eyes

@ Ian:

Miracle, are you insane, are you putting urnex in your latte???? I don't call thousands of layoffs, degradation of the brand a miracle, it's business 101, not a miracle. Anyone with an MBA could have made those same decisions and achieved the same result. Howard is insignificant...the brand will be a mid level tier entity with the likes of Arby's and Subway. Read the WSJ there are plenty of companies putting up positive numbers, the numbers at Starbucks looks so good because last year was so bad.

cialis online

at this rate this situation will become a real mess

Juicy Couture Bags

where did u find the bird, does it not on the tree?

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