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Is Starbucks Losing Steam? Investors are Worried

By CRAIG HARRIS Seattle PI October 8, 2007 Whether it's a new drink, a music deal or a movie promotion, Starbucks says it constantly strives to "surprise and delight" its customers. But it was investors who got the surprise, and little delight, as the share price dropped 23 percent during a one-year period that ended Sept. 30, the end of the company's fiscal year. During the same time, the S&P 500 Index, of which Starbucks is a member, gained 16.5 percent, including dividends. David Palmer, an analyst with UBS Securities in New York, said Starbucks desperately needs some "brand buzz" to turn things around. "What can help them? Basically, executing," Palmer said. "Is having a breakfast sandwich and the second year of a pumpkin spice latte all I have to look forward to, or can they come up with something more exciting?" While Wall Street has pummeled Starbucks in the past year, the coffee company remains profitable and has launched num...

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