Starbucks Not Doing Good

https://www.bloomberg.com/news/articles/2018-06-19/starbucks-pumps-the-brakes-in-its-home-market

The closing stores are often in “major metro areas where increases in wage and occupancy and other regulatory requirements” are making them unprofitable, Johnson said. “Now, in a lot of ways, it’s middle America and the South that presents an opportunity.”

Imagine that…

Charging $4 for a cup of coffee probably doesn’t help. I can stop at Racetrac and get my coffee for $1 as long as I bring my own cup. And, with their new setup, it is freshly ground coffee.

I might have a half a cup a month.

Never understood the fascination with coffee, and I grew up with a father who was a serious java junkie. I like the way it smells, oddly enough, but not the taste.

The big thing here the last several years is Dutch Bros. The high school kids line up around the building for their 1500 calorie coffee bombs every school morning. I’ll stick to tea and/or soda, thank you.

I only drink cafe con leche.

increases in wage and occupancy and other regulatory requirements

What does that mean?

Regulatory requirements Snow.

I drink McDonald’s coffee. At home and on the road. Hate every other thing McDonald’s has (well, except Egg White Delight), but it tastes pretty good to me.

I love Starbucks but I also want to retire someday so I go through the McDonald’s drive-thru for coffee. $1.57 for a large. Most of the time I manage to resist a breakfast burrito.

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NO!!!

McDonald’s breakfast burritos are evil. Pelleted sausage, hello? Gross.

Jacks (if you have them) is the way to go for a breakfast burrito

Back to back record quarters [1]? I think they are doing fine.

  1. https://investor.starbucks.com/press-releases/financial-releases/press-release-details/2018/Starbucks-Reports-Record-Q2-Fiscal-2018-Results/default.aspx

Read the article. Closing 150.

Starbucks not doing well…

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My wife makes a great cup of coffee…no need to go out. I have a Yeti travel mug. Don’t even know what Starbucks tastes like.

And yet, record quarters. They are doing just fine…

They don’t think they are. Of course you know more about their business than they do.

And I’ll stick to beer and/or bourbon, thank you.

A regular cup of coffee at Starbucks is just north of 2 bucks. About 35 cents more than Dunkin Donuts. Now if you want to get any of their fancy swills, yeah, it will cost more.

The Golden State Warriors are probably cutting a couple of their players. They must not be doing well!!!

They’re closing ~0.5% of their lowest-performing locations. Why does that make you believe
“they don’t think they are” doing well?