Earnings Preview: Starbucks Corp.

ASHLEY M. HEHER

CHICAGO (AP) — Starbucks Corp. reports its results for the third quarter Thursday afternoon. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Starbucks, which has seen customer traffic fall because of the recession, cut the prices on some of its easiest-to-make beverages while raising prices on more complicated beverages.

The company, which has been shutting stores, laying off workers and cutting other costs, said it would keep open 27 locations out of 800 that had been slated for closing. The about-face came after the Seattle coffee maker reviewed the stores' finances.

During the quarter, Starbucks said it was cutting out artificial flavors and ingredients from its baked goods to make the items more "wholesome."

The world's largest coffee company said it would match contributions to employees' retirement plans and announced a plan to take control of its 50 French locations.

Starbucks and Spain's Sigla SA (Grupo Vips) each had a 50 percent equity stake in the operations in France, Spain and Portugal prior to the deal. Under the agreement, Starbucks took full operating control of the French business while Grupo Vips concentrates on Spain and Portugal operations. Terms weren't released.