Summary
Starbucks Corporation's 2016 10-K filing showcases a year of solid growth and strategic investment. The company reported an 11% increase in total net revenues to $21.3 billion, driven by a 5% global comparable store sales growth, with a 4% increase in average ticket and a 1% increase in transactions. Operating income saw a significant rise to $4.2 billion, with an improved operating margin of 19.6%, attributed to sales leverage and lower commodity costs, partially offset by investments in employee wages and digital platforms. The company continued its disciplined global store expansion, opening 2,042 net new stores across its segments, contributing to revenue growth. Financial management remained strong, with $4.6 billion in cash flow from operations and $3.2 billion returned to shareholders through dividends and share repurchases. Starbucks is strategically reinvesting in its business, particularly in its partners (employees) and digital capabilities, signaling a focus on long-term growth and customer experience.
Financial Highlights
58 data points| Revenue | $21.32B |
| Cost of Revenue | $8.51B |
| Gross Profit | $12.81B |
| Operating Expenses | $17.46B |
| Operating Income | $4.17B |
| Interest Expense | $81.30M |
| Net Income | $2.82B |
| EPS (Basic) | $1.91 |
| EPS (Diluted) | $1.90 |
| Shares Outstanding (Basic) | 1.47B |
| Shares Outstanding (Diluted) | 1.49B |
Key Highlights
- 1Total net revenues increased by 11% to $21.3 billion in fiscal 2016.
- 2Global comparable store sales grew by 5%, driven by a 4% increase in average ticket and a 1% increase in transactions.
- 3Operating income increased to $4.2 billion, with an operating margin of 19.6%, up from 18.8% in the prior year.
- 4The company returned $3.2 billion to shareholders through share repurchases and dividends.
- 5Starbucks opened 2,042 net new stores globally, expanding its retail footprint.
- 6Investments in partners (employees) and digital platforms increased, reflecting a focus on enhancing customer experience and operational efficiency.