Wiki source code of Starbucks Corp

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1 {{box cssClass="floatinginfobox" title="**Contents**"}}
2 {{toc/}}
3 {{/box}}
4
5 = Summary =
6
7 * Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world.
8 * Starbucks operates over 35,000 stores worldwide.
9 * Starbucks and DoorDash Set to Expand Delivery Partnership Nationwide
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11 [[image:SBUX0.jpg||height="396" width="719"]]
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14 Starbucks Corp (Nasdaq: SBUX, LSE: 0QZH) is the premier roaster, marketer and retailer of specialty coffee in the world, operating over 35,000 stores worldwide.
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16
17 = Recent Developments =
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19 **Starbucks and DoorDash Set to Expand Delivery Partnership Nationwide**{{footnote}}https://stories.starbucks.com/press/2023/starbucks-and-doordash-set-to-expand-delivery-partnership-nationwide/{{/footnote}}
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21 January 17, 2023; Starbucks and DoorDash, Inc. announced the expansion of their partnership with new delivery service launching today in Northern California, Texas, Georgia, Florida and other select markets. Starbucks delivery with DoorDash will expand to additional markets over the coming months, with full nationwide availability anticipated in all 50 states by March 2023.
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24 This expansion follows on the heels of positive feedback from a successful pilot in Atlanta, Houston, and Sacramento, and additional market expansion in Seattle, Portland, and New York City last year. Through the partnership and as the largest local commerce platform in the country, DoorDash provides a delivery platform to enable increased, convenient access to Starbucks nationwide.
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27 **Starbucks to sell Seattle’s Best Coffee brand to Nestlé**{{footnote}}https://stories.starbucks.com/press/2022/starbucks-enters-into-an-agreement-to-sell-seattles-best-coffee-brand-to-nestle/{{/footnote}}
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29 October 18, 2022; Starbucks today announced it plans to sell the Seattle’s Best Coffee brand to Nestlé, with which the company established the Global Coffee Alliance in 2018. This transaction will further strengthen the Global Coffee Alliance by allowing both companies to focus on their core strengths.
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32 Since forming the Global Coffee Alliance in 2018, Nestlé and Starbucks have introduced a wide range of premium coffee products to new markets at a fast pace – including whole bean coffee, roast and ground coffee as well as Starbucks capsules for Nespresso and Nescafé Dolce Gusto proprietary systems. Today, Nestlé distributes Starbucks consumer products and foodservice beverages across more than 80 markets outside Starbucks retail stores under the Global Coffee Alliance.
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36 [[image:SBUX1.jpg]]
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38
39 = Financial Highlights =
40
41 **Q1 Fiscal 2023 Results**
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43 Starbucks Corporation reported financial results for its 13-week fiscal first quarter ended January 1, 2023.{{footnote}}https://investor.starbucks.com/press-releases/financial-releases/press-release-details/2023/Starbucks-Reports-Q1-Fiscal-2023-Results/default.aspx{{/footnote}}
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45 * Q1 Consolidated Net Revenues Up 8% to a Record $8.7 Billion
46 * Q1 Comparable Store Sales Up 5% Globally; Up 10% in the U.S; Up Double Digits Internationally, Excluding China
47 * Q1 GAAP EPS $0.74; Non-GAAP EPS $0.75; Performance Materially Impacted byHeadwinds in China.
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49 Global comparable store sales increased 5%, primarily driven by a 7% increase in average ticket, partially offset by a 2% decline in comparable transactions.
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51
52 The company opened 459 net new stores in Q1, ending the period with 36,170 stores globally: 51% company-operated and 49% licensed
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55 GAAP operating margin of 14.4% decreased from 14.6% in the prior year, primarily driven by previously committed investments in labor including enhanced store partner wages and benefits, inflationary pressures and sales deleverage in China, partially offset by strategic pricing in North America and sales leverage across markets outside of China.
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58 Net revenues for the North America segment grew 14% over Q1 FY22 to $6.6 billion in Q1 FY23, primarily driven by a 10% increase in company-operated comparable store sales, driven by a 9% increase in average ticket and a 1% increase in transactions, net new store growth of 3% over the past 12 months and strength in its licensed store sales.
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61 Operating income increased to $1.2 billion in Q1 FY23 compared to $1.1 billion in Q1 FY22. Operating margin of 18.5% contracted from 18.9% in the prior year.
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64 Net revenues for the International segment declined 10% over Q1 FY22 to $1.7 billion in Q1 FY23. Operating income decreased to $240.4 million in Q1 FY23 compared to $299.6 million in Q1 FY22. Operating margin of 14.3% contracted from 16.0% in the prior year.
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67 Net revenues for the Channel Development segment grew 15% over Q1 FY22 to $478.2 million in Q1 FY23, driven by growth in the Global Coffee Alliance and global ready-to-drink business.
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69 Operating income increased to $226.3 million in Q1 FY23 compared to $183.2 million in Q1 FY22. Operating margin of 47.3% expanded from 43.9% in the prior year.
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71
72 **Fiscal 2022 Full Year Results**
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74 Total net revenues increased 11% to $32.3 billion in fiscal 2022 compared to $29.1 billion in fiscal 2021, inclusive of $576 million attributable to the extra week in fiscal 2021.{{footnote}}https://fintel.io/doc/sec-starbucks-corp-829224-10k-2022-november-18-19314-7304{{/footnote}}
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77 Consolidated operating income decreased to $4.6 billion in fiscal 2022 compared to $4.9 billion in fiscal 2021. Fiscal 2022 operating margin was 14.3% compared to 16.8% in fiscal 2021. Operating margin contraction of 250 basis points was primarily due to investments and growth in labor, including enhanced retail store partner wages (approximately 290 basis points) as well as increased spend on new partner training and support costs (approximately 80 basis points). Also contributing were inflationary pressures on commodities and its supply chain (approximately 270 basis points), sales deleverage related to COVID-19 pandemic related impacts in its China market (approximately 110 basis points), business mix shift (approximately 60 basis points) and lower government subsidies (approximately 60 basis points). These increases were partially offset by sales leverage across markets outside of China (approximately 390 basis points) and strategic pricing, primarily in North America (approximately 320 basis points).
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80 Diluted earnings per share (“EPS”) for fiscal 2022 decreased to $2.83, compared to EPS of $3.54 in fiscal 2021. The decrease was primarily driven by lapping the prior year $0.56 gain, net of estimated taxes, on the divestiture of its South Korea joint venture and $0.10 related to the extra week in fiscal 2021.
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83 Capital expenditures were $1.8 billion in fiscal 2022 and $1.5 billion in fiscal 2021
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87 [[image:SBUX2.jpg]]
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89
90 = Company Overview =
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92 Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 83 markets. Formed in 1985. The company purchase and roast high-quality coffees that the company sell, along with handcrafted coffee, tea and other beverages and a variety of high-quality food items through company-operated stores. The company also sell a variety of coffee and tea products and license its trademarks through other channels, such as licensed stores as well as grocery and foodservice through its Global Coffee Alliance with Nestlé S.A. (“Nestlé”). In addition to its flagship Starbucks Coffee brand, the company sell goods and services under the following brands: Teavana , Seattle’s Best Coffee, Ethos , Starbucks Reserve and Princi.
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95 Starbucks has three reportable operating segments: 1) North America, which is inclusive of the U.S. and Canada; 2) International, which is inclusive of China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America and Caribbean; and 3) Channel Development. Non-reportable operating segments and unallocated corporate expenses are reported within Corporate and Other. Revenues from its reportable operating segments as a percentage of total net revenues for fiscal 2022 were as follows: North America (72%), International (22%) and Channel Development (6%).
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98 The company's North America and International segments include both company-operated and licensed stores. The company's North America segment is its most mature business and has achieved significant scale. Certain markets within its International operations are in various stages of development and may require more extensive support, relative to their current levels of revenue and operating income, than its North America operations.
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101 The company's Channel Development segment includes roasted whole bean and ground coffees, Seattle’s Best Coffee, Starbucks- and Teavana-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot , foodservice products and other branded products sold worldwide outside of its company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestlé, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestlé and others.
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103
104 == Stores ==
105
106 The company generates the majority of its revenues through company-operated stores and licensed stores.
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109 (% style="width:1226px" %)
110 | |**North America**|(% style="width:268px" %)**As a % of Total North America Stores**|(% style="width:117px" %)**International**|(% style="width:254px" %)**As a % of Total International Stores**|(% style="width:77px" %)**Total**|(% style="width:172px" %)**As a % of Total Stores**
111 |Company-operated stores|10,216|(% style="width:268px" %)59%|(% style="width:117px" %)8,037|(% style="width:254px" %)44%|(% style="width:77px" %)18,253|(% style="width:172px" %)51%
112 |Licensed stores|7,079|(% style="width:268px" %)41%|(% style="width:117px" %)10,379|(% style="width:254px" %)56%|(% style="width:77px" %)17,458|(% style="width:172px" %)49%
113 |**Total**|17,295|(% style="width:268px" %)100%|(% style="width:117px" %)18,416|(% style="width:254px" %)100%|(% style="width:77px" %)35,711|(% style="width:172px" %)100%
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115 [[image:1675700494622-654.png]]
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117
118
119 == Brands and Products ==
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121 Starbucks Corp major brands are Starbucks Coffee, Teavana, Evolution Fresh, Seattle’s Best Coffee and Ethos Water.
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125 (% style="width:1071px" %)
126 (% class="info" %)|(% style="width:290px" %)**Featured**|(% style="width:235px" %)**Drinks**|(% style="width:151px" %)**Food**|(% style="width:129px" %)**At Home Coffee**|(% style="width:124px" %)**Merchandise**|(% style="width:139px" %)**Gift Cards**
127 |(% style="width:290px" %)Pistachio Cream Cold Brew|(% style="width:235px" %)Hot Coffees|(% style="width:151px" %)Hot Breakfast|(% style="width:129px" %)Whole Bean|(% style="width:124px" %)Cold Cups|(% style="width:139px" %)Happy Birthday
128 |(% style="width:290px" %)Pistachio Latte|(% style="width:235px" %)Hot Teas|(% style="width:151px" %)Bakery|(% style="width:129px" %)VIA® Instant|(% style="width:124px" %)Tumblers|(% style="width:139px" %)Thank You
129 |(% style="width:290px" %)Pistachio Frappuccino® blended beverage|(% style="width:235px" %)Hot Drinks|(% style="width:151px" %)Lunch|(% style="width:129px" %) |(% style="width:124px" %)Mugs|(% style="width:139px" %)Traditional
130 |(% style="width:290px" %)Impossible™ Breakfast Sandwich|(% style="width:235px" %)Frappuccino® Blended Beverages|(% style="width:151px" %)Snacks & Sweets|(% style="width:129px" %) |(% style="width:124px" %)Water Bottles|(% style="width:139px" %)
131 |(% style="width:290px" %)Bacon, Sausage & Egg Wrap|(% style="width:235px" %)Cold Coffees|(% style="width:151px" %)Oatmeal & Yogurt|(% style="width:129px" %) |(% style="width:124px" %)Other|(% style="width:139px" %)
132 |(% style="width:290px" %)Starbucks Tribute Blend®|(% style="width:235px" %)Iced Teas|(% style="width:151px" %) |(% style="width:129px" %) |(% style="width:124px" %) |(% style="width:139px" %)
133 |(% style="width:290px" %) |(% style="width:235px" %)Cold Drinks|(% style="width:151px" %) |(% style="width:129px" %) |(% style="width:124px" %) |(% style="width:139px" %)
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136 [[image:SBUX3.jpg]]
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138
139 == Company History ==
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141
142 (% style="width:1040px" %)
143 |**Year**|(% style="width:974px" %)**Milestones**
144 |1971|(% style="width:974px" %)Starbucks opens first store in Seattle’s Pike Place Market.
145 |1982|(% style="width:974px" %)Howard Schultz joins Starbucks as director of retail operations and marketing.Starbucks begins providing coffee to fine restaurants and espresso bars.
146 |1984|(% style="width:974px" %)(((
147 Schultz convinces the founders of Starbucks to test the coffeehouse concept in downtown Seattle, where the first Starbucks® Caffè Latte is served.
148 )))
149 |1987|(% style="width:974px" %)(((
150 Il Giornale acquires Starbucks assets with the backing of local investors and changes its name to Starbucks Corporation. Opens in Chicago and first store
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152 outside the United States in Vancouver, Canada.
153 )))
154 |1990|(% style="width:974px" %)Starbucks expands headquarters in Seattle.
155 |1991|(% style="width:974px" %)Opens first licensed airport store at Seattle’s Sea-Tac International Airport.
156 |1992|(% style="width:974px" %)Completes initial public offering (IPO).
157 |2003|(% style="width:974px" %)(((
158 Acquires Seattle Coffee Company, which includes Seattle’s Best Coffee® and Torrefazione Italia® coffee.
159 )))
160 |2005|(% style="width:974px" %)Acquires Ethos Water
161 |2008|(% style="width:974px" %)Acquires Coffee Equipment Company and its Clover® brewing system.
162 |2010|(% style="width:974px" %)Expands digital offerings for customers with free unlimited Wi-Fi.
163 |2011|(% style="width:974px" %)Acquires Evolution Fresh.
164 |2022|(% style="width:974px" %)Launches Starbucks BAYA™ Energy ready-to-drink beverage.
165
166 = References =
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169 {{putFootnotes/}}
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