Coffee Shops

Starbucks: Rising Coffee Prices Hurt Profit
Thursday, January 27th, 2011- VOA

The world's largest chain of coffee shops says a drastic increase in coffee prices will hurt profits even more than first thought.

This week, Starbucks said it expects its full-year profit will be as much as $1.47 a share, which is slightly below predictions by Wall Street analysts.

The price of coffee is up nearly 80 percent over the past year, and the cost of beans is about one-fifth of Starbucks expenses, which also include labor and rent.

Rising costs for many kinds of foods, including bread, beef, and milk are squeezing profits at many restaurants.


Starbucks: Rising Coffee Prices Hurt Profit - coffee article from VOA