Early Access

10-KPeriod: FY2023

STARBUCKS CORP Annual Report, Year Ended Oct 1, 2023

Filed November 17, 2023For Securities:SBUX

Summary

Starbucks Corporation's 2023 10-K filing highlights a year of robust revenue growth and improved profitability, driven by strong performance in its North America segment and international expansion, despite some headwinds. Total net revenues increased by 12% to $36.0 billion, fueled by a 9% increase in comparable store sales in North America and a 5% increase internationally. The company's Reinvention Plan, focusing on partner investments, store innovation, and digital capabilities, appears to be yielding positive results, contributing to a 200 basis point expansion in operating margin to 16.3%. Diluted earnings per share also saw a significant increase, rising to $3.58 from $2.83 in the prior year. The company returned $3.4 billion to shareholders through share repurchases and dividends, demonstrating a commitment to shareholder value. While facing inflationary pressures on commodities and supply chains, Starbucks anticipates moderating these impacts in the coming fiscal year and remains confident in its long-term growth strategy.

Financial Statements
Beta
Revenue$35.98B
Operating Expenses$30.49B
Operating Income$5.87B
Interest Expense$550.10M
Net Income$4.12B
EPS (Basic)$3.60
EPS (Diluted)$3.58
Shares Outstanding (Basic)1.15B
Shares Outstanding (Diluted)1.15B

Key Highlights

  • 1Total net revenues increased by 12% to $36.0 billion in fiscal 2023.
  • 2Operating income increased to $5.9 billion, with an operating margin expansion of 200 basis points to 16.3%.
  • 3Diluted earnings per share (EPS) grew to $3.58 from $2.83 in the prior year.
  • 4Comparable store sales increased by 9% in North America and 5% internationally.
  • 5The company opened 1,339 net new company-operated stores and 988 net new licensed stores.
  • 6Starbucks returned $3.4 billion to shareholders through share repurchases and dividends in fiscal 2023.
  • 7Capital expenditures were $2.3 billion in fiscal 2023, with expectations for $3.0 billion in fiscal 2024.

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