Summary
Starbucks Corporation's (SBUX) 2019 10-K filing reveals a company focused on global expansion and strategic streamlining, with significant revenue growth driven by company-operated stores in the Americas. While overall net revenues increased by 7% to $26.5 billion, operating margin saw a slight decrease to 15.4% due to increased investments in partners (employees) and strategic initiatives like wage and benefit growth. The company's financial performance in fiscal year 2019 was impacted by significant divestitures and the licensing of its CPG and Foodservice businesses to Nestlé, which led to a decrease in 'Other' revenues. Despite these changes, Starbucks demonstrated a strong commitment to returning value to shareholders, with substantial share repurchases and dividend payments totaling $12.0 billion. The company continues to invest in digital capabilities and convenience-focused store formats to drive future growth and customer engagement.
Financial Highlights
57 data points| Revenue | $26.51B |
| Cost of Revenue | $8.53B |
| Gross Profit | $17.98B |
| Operating Expenses | $22.73B |
| Operating Income | $4.08B |
| Interest Expense | $331.00M |
| Net Income | $3.60B |
| EPS (Basic) | $2.95 |
| EPS (Diluted) | $2.92 |
| Shares Outstanding (Basic) | 1.22B |
| Shares Outstanding (Diluted) | 1.23B |
Key Highlights
- 1Total net revenues increased by 7% to $26.5 billion, driven primarily by company-operated stores (+9.4%) and licensed stores (+8.4%).
- 2Operating income increased to $4.1 billion, but operating margin slightly decreased to 15.4% from 15.7% due to increased employee investments and strategic spending.
- 3Earnings per share (EPS) decreased to $2.92 from $3.24, largely due to the lapping of prior year gains from the East China joint venture acquisition and Tazo brand sale.
- 4Starbucks returned $12.0 billion to shareholders in fiscal 2019 through share repurchases and dividends, up from $8.9 billion in fiscal 2018.
- 5Company-operated stores saw a 5% increase in comparable store sales, with a 3% increase in average ticket and a 2% increase in transactions.
- 6The company's strategy includes disciplined global expansion, focus on digital capabilities, and development of convenient store formats, with a total of 31,256 stores open globally by year-end.
- 7Divestiture of certain retail operations (Thailand, France, Netherlands) to a licensed model contributed to restructuring efforts and a pre-tax gain of $601.9 million from the Thailand sale.