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Starbucks 2Q profit sinks 28 percent
07:13 AM PDT on Thursday, May 1, 2008
SEATTLE -- Starbucks reports second-quarter profits fell 28 percent to $109 million.
The Seattle coffee company says revenue rose 12 percent to $2.5 billion, compared to the same time a year ago.
Starbucks had warned last week that results would fall short of Wall Street expectations as U.S. consumers responded to rising food and gas prices by making fewer latte runs.
Same-store sales declined in the quarter. But the company added 266 stores in the United States and 470 internationally to bring its world-wide total to more than 16,000.
For the full fiscal year, Starbucks said earnings would fall below last year's mark and that revenue would grow about 13 percent.
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