How is it that coffee companies — we’re talking Starbucks and Minnesota-based Caribou here — can build stores on just about every block and make a buck doing it?
We’re finding out today, they can’t. America’s love with “big coffee” may be over, and we’re finding that out by peeking into the financials the companies are reporting this week.
Starbucks reported a 35-percent increase in profits after the market’s close yesterday, but there’s this nugget: Customer visits to U.S. stores dropped 1 percent for the quarter ended Sept. 30.
It’s the first time Starbuck’s has seen store traffic drop. Ever.
Meanwhile, over at Caribou, Michael Coles was thrown overboard this week. The company is losing money, its margin is in negative territory and it’s closing stores.
As the markets opened this morning, Starbuck’s got roasted, losing 10 percent of its value.