Starbucks Posts Profit, But Sales, Traffic Still Low

Starbucks shares rose on the news that it made about $150 million in the most recent quarter, but this doesn't mean the economy's bubbling again. Sales and customer traffic at Starbucks stores are still lower than they were this time last year. The giant coffee retailer's profits are largely a result of corporate cost cutting. The company has laid off many of its workers and shut hundreds of shops.

STEVE INSKEEP, host:

NPR's business news starts with Starbucks grinding out a profit.

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INSKEEP: The giant coffee retailer says it made about $150 million in the most recent quarter. Its stock price rose on that news although this does not exactly mean the economy is percolating again. Like many other companies Starbucks profits are largely a result of corporate cost cutting. Sales and customer traffic at Starbucks stores are still lower than they were at this time last year. The company reduced costs though by laying of workers and shutting down hundreds of shops.

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