Starbucks closing 600 stores

Discussion in 'Stocks' started by Pekelo, Jul 15, 2008.

  1. Pekelo

    Pekelo

    http://www.chicagotribune.com/business/chi-080714starbucks,0,6280000.story

    "Starbucks said July 1 it intended to close 600 company-operated stores in the U.S. to help deal with a slowing economy. The stores make up 8 percent of the company's 7,250 it operates. The shutdowns will run through March 2009 and reduce the company's global workforce by as many as 12,000 jobs."

    I guess people are less willing to pay $4-5 for a latte....
     
  2. People should not drink coffee.
     
  3. Illum

    Illum

    I'm short. Growth stock is no longer. P/E to high imo. Earnings may be bad, but either way holding this short until 8. When it drops below 10 I will tighten stop.

    Middle class aspirational retail/coffee can not outperform in this market, this is why I hate the P/E.