Starbucks (SBUX) Says One-Fifth of U.K. Stores Losing Money
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Starbucks (Nasdaq: SBUX) wants to make a stronger image in the U.K., even as some stores in the market appear to be, well, unprofitable.
According to an email issued by spokesperson Laura Dalgleish to Bloomberg today, about 25 percent of all Starbucks-owned locations in the U.K. are "unprofitable." In total, about 20 percent of all U.K. stores are unprofitable, or a total of 150 stores.
Further, CFO Troy Alstead said the company was "looking forward" to paying more taxes in the U.K., following a recent uproar by authorities and media. The statement comes following Starbucks having reported paying just £8.6 million in corporate taxes since 1998, although they had sales of £398 million in the region last year alone.
Shares are up 0.8 percent Wednesday.
According to an email issued by spokesperson Laura Dalgleish to Bloomberg today, about 25 percent of all Starbucks-owned locations in the U.K. are "unprofitable." In total, about 20 percent of all U.K. stores are unprofitable, or a total of 150 stores.
Further, CFO Troy Alstead said the company was "looking forward" to paying more taxes in the U.K., following a recent uproar by authorities and media. The statement comes following Starbucks having reported paying just £8.6 million in corporate taxes since 1998, although they had sales of £398 million in the region last year alone.
Shares are up 0.8 percent Wednesday.
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