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Financial Analysis Of Starbucks Corporation

1085 words - 4 pages

Starbucks Corporation was formed in 1985. Starbucks Corporation start with purchase and roast the high-quality bean and sell them. Now Starbuck not only provide coffee but also tea and other beverages. The company brand product will be under name of Starbucks, Tazo, Teavana, Starbucks VIA, Starbucks Refreshers, Seattle’s Best Coffee, La Boulange, and Verismo brand . Starbucks Corporation sector now is in restaurant or specialty eateries. On 2013, Starbucks store reach into approximately 10,194 stores and approximately 9,573 licensed stores. Starbucks open in over than 50 countries. Starbucks headquarter is at 2401 Utah Avenue South, Seattle, WA, 98134. Overall Starbucks employees are 182.000.
One of the biggest operating risks of Starbucks is commodity price volatility. The price is related to dairy, sugar and coffee bean price especially when Starbucks need to maintain the supply or inventories to support the operation. Even Starbucks have a contract with all that commodity and also agreement about the price, the contract is only for 5 years, its mean after 5 years the product can be have higher prices. Below is the diagram for coffee price related to Starbucks share price.

Another operating risk of Starbucks is:
• Opening 3,000+ net new stores in Americas region by 2017
• Channel Development (CPG) to double its international footprint by 2015
• China on track to become second-largest market in 2014
• Starbucks VIA® Ready Brew, K-Cup® packs and now the Verismo System combine to create the strongest and most complete line-up of premium single-serve options in the global coffee industry
• Social and digital media, loyalty and mobile payment platforms transforming customer experience and deepening connection to customers around the world
• Reiterated commitment to leadership position in $40 billion global tea market and reaffirmed intent to acquire Teavana this year
• Reiterated commitment to profitability in Western Europe
Based on Investor Starbucks.com the result for quarter 4 on fiscal 2013 are:
• Total net revenues increased 13% to $3.8 billion
• Global comparable store sales grew 7% driven by a 5% increase in traffic
• 8% comp growth in the Americas and the U.S.
• 2% comp growth in EMEA
• 8% comp growth in China/Asia Pacific
• Consolidated operating income increased 29% to $669 million
• Consolidated operating margin expanded 220 basis points to 17.6%
• Earnings per share increased 37% to $0.63 per share, including a $0.03 non-routine gain on the sale of Starbucks equity in Chile and Argentina joint ventures
• Opened 558 net new stores in the quarter, including the 1,000th store in both China and Japan
• The Board of Directors declared a cash dividend of $0.26 per share, an increase of 24%
And based on fiscal year 2013 overall are:
• Total net revenues increased 12% to $14.9 billion
• Global comparable store sales grew 7%, driven by a 5% increase in traffic
• 7% comp growth in the Americas,...

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