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Brophtron

11/21/14 1:38 PM

#6786 RE: Clifford22 #6785

Actually, Starbucks has only had 2 quarters with no growth; if you count back 3 quarters, sales rose by 10%. However, they also have a much higher gross profit margin compared to JAMN; they have actual net profits; they pay dividends and they have the resources to build more stores. Last year Starbucks had positive cash flow over $1 billion; JAMN loses $1 million per quarter.

You say that they paid for that growth, but they're spending $3 million per quarter at a time when the growth is over.

You say that it's time to dial back on the expenses, but without spending money, there is no hope for growth.

Without another infusion of cash, this is no short term setback.