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The Starbucks financial forecast
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Fourth quarter earnings are expected to be positive for Starbucks, according to Minyanville news. The coffee juggernaut has made massive business changes over the past year, trying to settle back into that golden formula that made Starbucks everybody's go-to spot for coffee. Not all shifts have been felt by the consumer, who is more concerned with the quality and the price of a cup of coffee, than antics and gravitational shifts made by the world's biggest coffee chain.
What has Starbucks been up to? Well, they've shut down hundreds of store locations, with more closures planned, while at the same time, experimenting with Starbucks 'stealth' coffeehouses, Starbucks stores veiled to look more like independent coffeehouses. They've lowered prices, and introduced their line of instant coffee, Via Ready Brew, to compete with their much more inexpensive competitors, such as Dunkin Donuts. They'll be forced to compete with their higher end competitors as well in the future, as the Italian coffee maker, Illy moves in on US turf.
Starbucks has ended their stint in the music business with Hear Music, frustrating artists like Carly Simon, but reigning in their tangent business ventures which seemed oh-so genius in the pre-recession days. They've are also constantly upping their customer-loyalty deals, such as a free Birthday drink with a Starbucks Reward Card.
The coffee juggernaut is certainly active and innovative enough, with good, bad, and questionable ideas to deserve a plus in earnings, but the company that once was welcomed with an open embrace by the public, for convenience, reliability, and cool quotes on their coffee cups, is now fighting the reputation of over-priced coffee and the perception of being a big, fat chain store cliche.
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