Starbucks Profits Triple

I found this article on the BBC website and it talks about how Starbucks has tripled their profits in a year. The article states that at the end of December Starbucks made a net profit of $241.5m which compared to $64.3m a year earlier.

Starbucks has had to make a number of cost cutting changes over the past year not only to survive in the harsh economy but also to win back support from it's customers. Starbucks had to cut thousands of jobs and also shut down many under-performing stores. They have also introduced lower coffee prices to win back customers who were tempted away by cheaper rivals.

Howard Schultz, the founder and chief executive of Starbucks admitted that they had opened too many stores which had resulted in stores taking business away from each other.