Monday, September 29, 2008

Starbucks shares could perk up 30 pct-Barron's

NEW YORK, Sept 28 (Reuters) - Starbucks Corp (SBUX.O: Quote, Profile, Research, Stock Buzz) shares could rise 20 percent to 30 percent within a year as the coffee chain overhauls its menu and slashes costs, Barron's said in its Monday edition.

Chief Executive Howard Schultz is trying to re-energize the chain after a decade-and-a-half of rapid expansion led to its many stores stealing sales from each other, and prompted rivals such as McDonald's Corp (MCD.N: Quote, Profile, Research, Stock Buzz) and Dunkin' Donuts to roll out competing products, often at lower prices.

In July, Starbucks reported a $6.7 million fiscal third-quarter loss, its first loss as a public company.

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