Cuts at Starbucks pay off

COFFEE chain giant Starbucks booked a rise in quarterly profit yesterday as it reaped the benefit of closing outlets and cutting costs.<br /><br />Net income for the firm&rsquo;s third quarter, ending 28 June, was $151.5m (&pound;919m), or $0.20 per share, reversing a loss of $6.7m, or $0.01 per share, for the same period in the previous year, the firm&rsquo;s first ever quarterly loss.<br /><br />Excluding restructuring costs, the group, led by chairman, president and chief executive Howard Schultz, booked a profit of $0.24 per share, outstripping an analysts&rsquo; consensus forecast of $0.19 per share.<br /><br />Revenue fell from $2.6bn to $2.4bn at the firm, which has slashed jobs, cut down on expenses and earmarked more than 1,000 stores for closure in a bid to shave $550m off annual costs.<br /><br />Starbucks&rsquo; shares closed down 1.54 per cent on the Nasdaq, falling to $14.69 at the closing bell.