01—Abstract
Summary
Summary of the 10-K filed November 12, 2015. Cited figures are marked; the original filing is the authoritative source.
Starbucks Corporation's 2015 10-K filing reveals a strong fiscal year with a 17% increase in total net revenues to $19.2 billiona, driven by a robust 7% growth in comparable store sales globally.
The company's Americas segment continues to be the primary revenue driver, with positive performance attributed to beverage and food offerings and strategic new store openings. A significant event impacting the fiscal year was the full consolidation of Starbucks Japan, which boosted revenues considerably in the China/Asia Pacific segment, though it also led to a notable decline in operating margin for that segment due to acquisition-related costs. The company demonstrated a commitment to returning value to shareholders, repurchasing approximately $1.4 billionb in stock and paying dividends totaling $958.7 million in fiscal 2015.
Starbucks also continued its disciplined global expansion, adding over 1,500 net new stores across its operating segments. Management expressed confidence in future growth, projecting revenue growth exceeding 10%c for fiscal 2016, supported by continued comparable store sales increases and further store expansion, particularly in the China/Asia Pacific region. The company remains focused on digital innovation, including its Mobile Order and Pay functionality, as a key driver of convenience and brand engagement.
02—Key points
Key Highlights
- Total net revenues increased 17% to $19.2 billion in fiscal 2015, driven by a 7% global comparable store sales growth.
- The Americas segment reported an 11% revenue increase, with operating income growing 80 basis points due to sales leverage and investments.
- Starbucks Japan was fully consolidated in fiscal 2015, significantly boosting China/Asia Pacific segment revenues by 112%, albeit with a temporary operating margin decline.
- The company returned $2.4 billion to shareholders through share repurchases ($1.4 billion) and dividends ($958.7 million) in fiscal 2015.
- Starbucks continued its global store expansion, adding 1,677 net new stores in fiscal 2015, with a focus on the China/Asia Pacific region for future growth.
- Operating margin improved slightly to 18.8% from 18.7% in the prior year, despite investments in employee compensation and digital platforms.
- The company is actively managing its commodity price risk through various hedging strategies, particularly for coffee and dairy products.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2015, Starbucks Corp kept $0.14.
- Revenue$19.16B100.0%
- Cost of revenue−$7.79B40.6%
- Gross profit$11.38B59.4%
- Operating costs−$7.77B40.6%
- Operating income$3.60B18.8%
- Interest, other & tax−$843.6M4.4%
- Net income$2.76B14.4%
Where FY2015 revenue went
$19.16B- Cost of revenue: $7.79B, 41% of revenue
- Operating costs: $7.77B, 41% of revenue
- Net income: $2.76B, 14% of revenue
- Interest, other & tax: $843.6M, 4.4% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2015filed November 12, 2015Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $19.16B$16.45B | +16.5% |
| Cost of Revenue | $7.79B$6.86B | +13.5% |
| Gross Profit | $11.38B$9.59B | +18.6% |
| Operating Expenses | $15.81B$13.63B | +16.0% |
| Operating Income | $3.60B$3.08B | +16.9% |
| Interest Expense | $70.50M$64.10M | +10.0% |
| Net Income | $2.76B$2.07B | +33.3% |
| EPS (Basic) | $1.84$1.37 | +34.3% |
| EPS (Diluted) | $1.82$1.35 | +34.8% |
| Shares Outstanding (Basic) | 1.50B1.51B | −0.7% |
| Shares Outstanding (Diluted) | 1.51B1.53B | −0.8% |
05—Questions
Frequently Asked Questions
What was Starbucks' overall financial performance in fiscal year 2015?
In fiscal year 2015, Starbucks reported a strong financial performance with total net revenues of $19.2 billion, a 17% increase over fiscal year 2014. This growth was primarily driven by a 7% increase in comparable store sales globally and the strategic acquisition and full consolidation of Starbucks Japan.
How did the acquisition of Starbucks Japan impact the company's financial results?
The full consolidation of Starbucks Japan in fiscal 2015 significantly boosted revenues in the China/Asia Pacific segment by 112%. However, this consolidation also included acquisition-related transaction and integration costs, which led to a 1,210 basis point decrease in the operating margin for that segment. Despite this, the Americas segment showed strong performance with an 11% revenue increase and an 80 basis point improvement in operating margin.
What is Starbucks' strategy for global expansion and shareholder returns?
Starbucks continued its disciplined global expansion by opening 1,677 net new stores in fiscal 2015, with a significant portion of future growth expected in the China/Asia Pacific region. The company also demonstrated a strong commitment to shareholder returns, repurchasing approximately $1.4 billion of its common stock and paying $958.7 million in dividends during fiscal 2015.
06—Continue