Starbucks Saves 30 Stores From Shuttering
NEW YORK (
) --
Starbucks
(SBUX) - Get Report
is pulling 30 of its cafes off its black list.
The coffee retailer will keep 30 unidentified locations open that were originally slated to shutter along with about 1,000 other stores.
Starbucks announced the shrinkage over the course of the past year in an effort to cut cost. The company has also said it will eliminate about 6,700 jobs.
But at an investor conference, management said that 30 stores have perked up their profits in recent months -- so much so, that they are actually helping to boost company results. Thus, their lives will be spared.
Starbucks has felt increasing pressure amid the recession, as consumers forego their venti macchiatos for cheaper versions at
McDonald's
(MCD) - Get Report
newer McCafe, and at privately-held
Dunkin' Donuts
.
On Wednesday, McDonald's said a new espresso-based coffee drink
helped lift its total same-store sales 2.2% in August
.
Shares of the company jumped 4% in afternoon trading to $19.95.
-- Reported by Jeanine Poggi in New York
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