Starbucks Hunkers Down

What will likely stand as the day's biggest understatement came early Tuesday after Starbucks released dismal fourth-quarter results, issued a scary forecast, and announced it would curtail its plans to open 40,000 stores. "Now is not the time for lofty goals," CEO Howard Schultz told Bloomberg News.

The chain's profits fell 96 percent and missed analysts' estimates. Same-store sales fell by 8 percent. For many consumers, now is not the time for lofty coffee.

"The results and Schultz's retreat underscored the company's need to focus less on growth and more on profits," Bloomberg reported.

The company is paying dearly for its rapid expansion in recent years. Since 2004, until this summer, it doubled in size, opening 16,000 new stores with an ultimate goal of 40,000.

Schultz is revamping marketing and operations and is concentrating on sales at existing stores. In July, Starbucks announced it would close about 600 underperforming stores in the U.S. -- most of them in big cities, where you can't walk a block without coming upon one.

Still, it opened a net total of 883 new stores this year.