dunno, if the economy isn't that strong and people start trading down, they might be more likely to grab a cup of coffee elsewhere (and for less than $4/"tall" cup). with no dividend and questionable ability to actually expand and grow, I'll look elsewhere.
They're going to MCD. People are buying a breakfast meal that includes coffee for $4 instead of a coffee for $4 and a croissant for $4... The stock is actually up .4% while the rest of the market's down.
American coffeeshop giant Starbucks said Thursday it would close some 600 "underperforming company-operated stores in the US market as part of a reorganization to pump up profitability.
"This decision is a result of a rigorous evaluation of the US company-operated store portfolio and includes the 100 stores targeted for closure in the company's previously announced plans," the Seattle, Washington, company said in a statement.
Starbucks also said it expects to open fewer than 200 new US company-operated stores in fiscal 2009.
In employment, Starbucks said full-time and part-time retail positions "will be eliminated," but many employees will be able to take available positions at nearby Starbucks stores.
"In January, we committed to transforming the company through a series of critical and strategic initiatives to improve the current state of our US business and build the business for the long term," stated Howard Schultz, chairman, president and chief executive.
"Our executive and field leadership teams conducted an extensive review of our US company-operated store portfolio with a goal of enabling our organization to focus its efforts on locations where we can more effectively improve the customer experience."
Meh, it's just smart business. If I had the attention span to follow single stocks, I'd buy right now.
So many companies are afraid to cut the fat. To me it's a sign of good (for business... not community) executive leadership that they aggressively expand, check themselves, pick the good ones and drop the rest so they can keep expanding.
sell a "covered call" option? for Friday July 18 expiration the $16 call is currently selling for $.19. maybe enable you to limit your downside risk a bit? (note, am NOT an expert on this, talk to TheJoker for serious advice...)
edit - hell, August's call option at $16 is selling for $.66, and the $17 call is $.38. you could sell a $17 call, cash out if/when it hits 17, and if it doesn't, you just made $.38/share.