Starbucks Headed into a Very Tough Year
As you head out to get that cup of joe this morning, think about this:
The deteriorating world economy will slam Starbucks Corp. next year, company officials warned in a filing with the Securities and Exchange Commission. “The company will face an extremely challenging fiscal 2009 because Starbucks customers may have less money for discretionary purchases as a result of job losses, foreclosures, bankruptcies, reduced access to credit and sharply falling home prices. Any resulting decreases in customer traffic or average value per transaction will negatively impact the company’s financial performance,” officials at the Seattle coffee giant (NASDAQ: SBUX) warned.