Economic turmoil takes toll on Starbucks

Want to know the real state of the U.S. economy? Look no further than your neighborhood Starbucks store which, if you live in a small or large city, is probably on the next corner. Earnings have been dropping for the massive international coffeehouse chain, despite last year's move to close more than 600 stores in the United States and in other countries. Starbucks shares have dropped below the $10 level, more than 50 percent lower than a year ago, even as the company's stores and coffee products seem to become even more ubiquitous. Analysts say the stock has continued to lose value because Starbucks profits have been lower than expected as cash-strapped consumers cut back on expensive coffee purchases, according to CNN. In its fourth-quarter report, released today, Starbucks reported an 8 percent drop in sales, although its sales for 2008 rose 10 percent over last year. But Starbucks, which forever changed the neighborhood coffeehouse from a locally owned family business to an overly aggressive, corporate powerhouse, still has more than 15,000 coffeehouses worldwide.