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VIDEOStarbucks Loses 600 Stores, Gains Corporate Jet
By
Scott Reeves Jan 09, 2009 12:45 pm
But coffee-maker expects to be profitable in 2009.
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The company that brews lattes and cappuccinos for the masses reportedly shelled out $45 million for the plane, and now owns 3 jets.
This atrocity happened “at about the same time it told employees that it was reconsidering how much it will match in their 401(k) plans this year,” the newspaper reports. You can almost hear the reporter hyperventilating.
But owning private planes probably makes sense for a company that operates in 43 countries outside the United States. Top executives are the key to any successful operation and their time is valuable - too valuable to be hung up in airport terminals after missing a connecting flight, even with a laptop.
Starbucks ordered the plane 3 years ago and almost certainly would be hit with a stiff cancellation fee for backing out of the deal now.
Starbucks’ decision to buy a new plane is nothing like the Big 3 CEOs flying to Washington to beg Congress for a handout. Starbucks has closed selected stores, but remains profitable despite taking a big hit in the fourth quarter. Starbucks expects to make money in 2009, while the automakers face continued losses.
The Seattle newspaper reports that Starbucks’ Chairman Howard Schultz reimbursed the company $400,919 for personal use of company aircraft - and even quotes an expert:
“That’s not an acceptable answer in 2009,” said Nell Minow, editor of the Corporate Library, a watchdog-research firm. “It’s not acceptable to use it for anything but the most efficient possible business use.”
Golly, what would we do without experts? The chairman reimbursed the company, so what’s the harm (except, of course, for all those gallons of oil)? In any case, it’s not likely that the CEO will be forced to take a bus to a key meeting.
If a stockholder is enraged by the new jet, it’s time to sell and look for another investment. Luckily, all material facts are disclosed in filings with the Securities and Exchange Commission for anyone to read.
And if that's too much work for you, there's always the Seattle Times.
No positions in stocks mentioned.
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