Troubled Starbucks has sacked its chief executive, handing the reins back to chairman Howard Schultz in a major restructuring initiative to pull the company out of a downward slide.

US coffee retail giant Starbucks has raised its growth expectations for the fiscal year 2004 to between 25% and 30%, after reporting 53% rise in net profits of $79m (€66.57m) during Q2.

Starbucks has apologised after charging New York rescue workers £88 for water used to treat victims of the terrorist attacks.