Restructuring and “significant transition” for Starbucks Corporation has seen its profits crash 96.6% to $5.4m, compared with $158.5m in its fourth quarter last year.
The coffee chain’s fourth-quarter results, ended 28 September, and full fiscal 2008 results also reveal a fall in operating profit for the year from $1.1bn in fiscal 2007, to $504m.
The company said it will be adopting a “more cautious approach” in the UK and Western Europe, with regard to new store openings, with only 700 net new stores planned internationally.
In the US, Starbucks’ 2009 store opening target was “approximately a negative 20 net new stores”, according to the statement.
This includes a nearly 225 company-operated store decline and approximately 205 net new licensed stores.
This year saw the closure of approximately 600 company-operated stores in the US and 61 company-owned stores in Australia, costing the firm $105.1m in restructuring and other transformation strategy costs, which had a detrimental effect on its net income.