Starbucks' quarterly profit beats analysts' forecasts

Starbucks earned $150 million, or 20 cents per share, during the quarter that ended in late September. Excluding one-time items, it earned 24 cents per share. (Analysts expected 21 cents.) Net revenue declined 3.7% to $2.42 billion, as overall same-store sales fell 1%. Read "Starbucks earning surge amid cost reductions" || Read Starbucks' press release

Comments

[Will]

Awesome! Now give us back our labor and benefits you greedy douches!

[tired of this]

No I doubt they will.

[BusyBean]

Forgive me for reading this statement through a biased "starbucks fired me for no good reason" point of view, but doesn't wall street see what this statement really says? Starbucks admits to making a fake profit by eliminating their best an probably highest-paid employees, cutting down on labor to the bone-marrow, and thusly lowered quality on their core product (customer service), and they're proud they did it more than expected? If I were an investor right now, I'd be pulling my money out, as this system is unsustainable, and it's only a matter of time before customers figure it out en masse.

[GRTL]

Greedy corporate types don't care about sustainability anymore. They want quick profit and get out.

Who cares if anyone suffers in the way of that goal? No one, being profitable is the principle they subscribe to the most now.

[Batista Ben]

Yay we didn't suck quite as much. Uhm. Woo?

[Nacho]

So more profit to the shareholders while total revenue and same store sales declined? And this is a success?!?! The numbers seem to show that you are hemorrhaging customers and cutting back to (as BusyBean put it so elegantly) bone marrow of the skeleton needed to keep the company going. I'm not in finance or business or anything, but it doesn't take a genius to figure out declining sales isn't good.

[SBUX Alum Bill]

@ Batista Ben:

I agree. Comp store sales of negative 1% versus anemic 4Q08 sales is nothing to crow about - especially when the reduction in # of stores should mean INCREASED sales for the stores that remain.

[tired of this]

Given the current economic climate I would say reducing losses in traffic and sales are a positive trend. However since I'm a bitter bean, I feel like all of the talented people we had to give up to achieve this mediocrity were not worth the result. I believe we will keep cutting labor until we eliminate a vast majority of the tenured people. That way no one will be left to complain about how the company used to run.

[Not a bitter bean]

Starbucks took a risk and made bold moves to save the company. Now we are poised and ready for future success!!!

[jah]

do not worry the bean will pre-vail

[is it so hard to be civil]

There are very few seasoned partners in our district. A lot of management has left our district in the last year.

[AmericanoMan]

This is nothing but creative accounting and not a true indication of the health of Starbucks.

If the profits were really there, Starbucks would not be radically changing their card programs.

[Order Prozac Online]

Congratulations to you. Keeping this up will put you on top or much more. In this type of business, it really hard to tell when you'll earn this much.

[14xxxxx]

has anyone heard that they listen in to talk on the floor (with the camera's) and a system looks for keywords that are being said? pretty scary...I had head office calling me because I twittered "just read the words ferosh and fierce in a starbucks memo" in regards to the Christian Syriano starbucks cards...I was apparently in breach because it was top secret? I didn't even say anything about the ugly starbucks cards they obviously overpaid him to create

[Chewie]

Interesting commentary from a former insider:

http://www.examiner.com/x-20524-Seattle-Starbucks-Examiner~y2009m11d5-Starbucks-tries-to-shed-trendy-image-as-Q4-financials-loom

[Schmidt, Jingle Heimer]

That's funny 14x, I'm asking if anyone's checking and/or posting here on the new store laptops. I'm sure you won't be.

[Trey]

14xxxxx, that is so ridiculous of you to even think that they would or even have the ability to monitor what you say on the floor...this is a coffee shop, not the CIA. Plus with all the layoffs that have occurred, you think they are really paying people to sit and listen to you chat....get real.

[cary]

any other mass exodus as far as managers around the country? in area they are dropping like flies...and on their own accord.

[BusyBean]

Did anyone look at the PowerPoint SBux has posted on their investor relations site? On slide 17 they list Experienced Management under their "solid foundation". Lol
Slide 15 also lists "lower input cost" for food twice on a one-page seven-bullet list. That's quality work at starbucks right there. :)

[me myself and I]

I don't think our cameras are actually capable of recording sounds. They aren't even covering everything important, just to save money. How would they analyze all this?
This sounds like someone trying to create some paranoia. (I'm not talking about you, but the person you heard it from)

[Will]

We don't even have a P&AP person here anymore. No way they're listening in from Seattle. That's retarded.

[Redd]

They actually CAN listen in to the store...but I'm pretty sure it's only when there is a security issue.

[BOSTON STARBUCKS REBEL]

It's true that Starbucks can and does listen into conversations at all company-operated stores in the U.S. There is a microphone panel located either in your backroom or right next to the safe. You can easily see it. I myself have "talked" with people in the watch center.

[Jonathan]

Sure the shareholders are happy, but what about the customers and employees? The "Starbucks Experience" has been reduced to a steaming pile a crap. Get you in, get you out, get your money, would you like fries with that?

If Starbucks was truly a bold company they would start treating their customers and employees like human beings instead of just mere numbers.

[STARBUCKS GOSSIP webmaster]

>>>> It's true that Starbucks can and does listen into conversations at all company-operated stores in the U.S.

Sure. I can imagine that job at Seattle HQ -- eavesdropping on store conversations. "So, what did you do last night?" "Oh, watched a little TV..."

I doubt it.

[Pat Nerr]

I heart Starbies...

... and there's nobody listening at Starbucks. The cameras only go live on demand. Think it through... how much storage space would be needed to store hours and hours of video/sound from thousands of stores...

that would be the most boring job ever... I also heart Mike Stafford... he's the greatest

[BOSTON STARBUCKS REBEL]

I didn't mean that Big Brother is watching over your shoulder 24/7, but Starbucks does have a watch center that can and does monitor all company-operated stores with audio/visual recording equipment. If you walk into some Starbucks you'll notice a small sign stating that the premises is monitored by such equipment. Most of the time, this used mostly for partner and asset protection.

[whatever]

@BSR is, once again, full of it.

I myself have participated in P&AP investigations in which we were frustrated because there was NO AUDIO. available. And there are many situations where a robbery has occurred and we were unable to verify what happened because we have NO AUDIO. Not to mention the fact that if there were audio, we all probably would have lost our jobs a long time ago. Stop inciting paranoia, BSR, you're like some weird psychopath who finds personal satisfaction in imagining that he is cleverly toying with people.

[me myself and I]

Maybe we all should make sure there will stay some reasonable doubt about that issue. I still doubt there is audio from the cameras. But maybe there is audio somewhere else, like BSR statet. And maybe just not every store is equipped with all of that. My store hasn't even had a camera until recently.

I didn't mention the week camera points for a reason. Ever thought of people actually abusing the info on here for their crooked little ideas how to rob a Starbucks? We shouldn't make it too easy for them.

[baristamom]

When new cameras were installed in my store early this year we were told they also record audio. I would beleive the "live on demand" comment is true. If they actually listened to everything most of my store would be gone!

[s]

I don't know about audio but I've seen our cameras go back in time for 2 weeks to review a theft.

[javagirl666]

The only time the audio goes live is when you pick up the "red phone" during some sort of emergency.

[BOSTON STARBUCKS REBEL]

OK, people if you don't believe me. Go into your store. Either right above the safe, in the ceiling is the audio panel where they can hear what you are saying. It might in the backroom near the MWS. But trust me, I've spoken to people in the watch center. I wasn't talking to people in my head.
Also, if you read the Safety and Security Manual you would know what alarm and security systems are actually installed in your store.
I highly doubt that you even know how to set the duress alarm on the safe.

[BOSTON STARBUCKS REBEL]

Thats right the "audio" where they can hear is on-demand only. Like trying to get decaf or bold. It's on demand and only for emergencies.

[@usorthem3]

@javagirll666 Are U talking about the one in Police Commissioner Gordon's office that dials directly to BatMan? I was told never to use that one in case they were sliding down the Bat Poles on their way to the Bat Cave. Other than that one I never seen a "Red" phone in any store I ever worked.
I do know that when I hit the wrong button on the safe, the lady heard me say "crap" when I knew what I had done because she asked me if that was me that said it. Oops, Big Brother is listening and watching here in the Twilight Zone known as the "New LEAN" SBUX. If U make a inefficient motions "WE" will know about it.

BTW Congrats on the $150million I want 2 T Y 4 my $.25 raise that only puts me $10 in the hole w/ my new insurance rates. ^5 for that.
When Ur smiling, Ur only going to get happiness in return, right? =)

[kathy koffee]

to post even bigger profits next year, or even to stay the same, they will take even more from us. we will lose more labor, some districts already have. we will lose even more benifits and more work will be put on the lowly store managers.

i find it hard to believe anyone would listen to what we have to say in our stores, when they never answer any of our phone calls or emails about the crap going on in the stores. i do however beleive they have the capabilty to do so. they probably do it only when money is missing, or business is bad, or god forbid, customer voice is down.

[Oi ! Laddy !]

if you have customers who want their 10% still, just have them purchase a new gold card between jan 1 and jan 4... then keep the old one to make it personal...use gold card for 10% all year and then personal card for points toward free drink. win win.

[Pen Plum]

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[Tike]

I'm not esaily impressed. . . but that's impressing me! :)