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NEW YORK - THE US financial crisis has hit coffee sales at Starbucks, with an 'extremely challenging' period forecast for fiscal year 2009, the company said on Monday in its annual report.
The financial downturn would translate into fewer customers and less coffee sold, the company predicted.
'Starbucks customers may have less money for discretionary purchases as a result of job losses, foreclosures, bankruptcies, reduced access to credit and sharply falling home prices,' said the company.
'Accordingly, Starbucks expects to report negative comparable store sales for fiscal 2009,' which ends in September, it added.
Starbucks reported third-quarter losses for fiscal 2008 that ended Sept 30, and further losses for the year's fourth quarter. Earlier this month, it announced a 50 per cent drop in annual profits.
Starbucks has also been dealing with fierce coffee competition from other fast food restaurant chains such as McDonald's and Dunkin'Donuts.
The Seattle, Washington-based Starbucks chain plans to open in December 700 new outlets abroad and close 20 in the United States.
At the New York Stock Exchange close on Monday, Starbucks stocks fell 5.09 per cent to US$8.02. They were worth nearly three times as much a year ago. -- AFP
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