Restructuring and "significant transition" for Starbucks Cor-poration 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 opera-ting profit for the year from $1.1bn in fiscal 2007, to $504m.
The firm has 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 is now "approximately a negative 20 net new stores", according to the statement. 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 stra-tegy costs, which affected its net income.