photo credit: visualpanic via photopin cc

photo credit: visualpanic via photopin cc

The final arbitration decision in a case begun back in 2011 when Starbucks terminated a contract it had entered with Kraft Food Group, has been decided.  The arbitrator in the case found against Starbucks, ordering them to pay $2.3 Billion in damages and another $527 million in interest and attorney fees.  DDIFO Restaurant Analyst John Gordon advises this will clean Starbucks out of all its cash, necessitating issuance of $750M in debt to cover future payments.  Starbucks CEO Howard Schultz reported in a conference call Wednesday that the company’s liquidity was adequate and that capital expenditures will continue.  The company will also issue a correction and restate its results for the 4th quarter to now show an operating loss of $2.12 Billion including the damage payment!