Tuesday, November 11, 2008

Incredible

Starbucks was going to report their 4th quarter results yesterday and I was expecting a pretty big loss in profit. I was not expecting their profit to be down by 97%, or to go from $158.5 million to $5.4 million. That's insane. Still, perhaps if they had good coffee at cheap prices, instead of disgusting coffee that costs 3x more than McDonald's, then they wouldn't have suffered so much. And the CEO isn't fooling anyone by saying that the company's going to rebound after this. The poor economy is probably going to last throughout most of next year, and I fully expect Starbucks to reduce prices, drastically reduce the number of stores concentrating in big cities, and to have more food along with coffee.
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