I. Company Overview i. Company History ii. Business Portfolio iii. Past Performance
II. Statement Analysis i. Income Statement ii. Balance Sheet iii. Cash flows
III. Ratio Analysis i. Liquidity ii. Asset Management iii. Debt Management iv. Profitability v. Market/Value
IV. Conclusion i. Key to future success ii. Investment Recommendation
Starbucks Corporation retails, roasts, and provides its own brand of specialty coffee. The Company operates retail locations worldwide and sells whole bean coffees through its sales group, direct response business, supermarkets, and on the World Wide Web. Starbucks also produces and sells bottled coffee drinks and a line of ice creams.
Starbucks Corporation (Starbucks), integrated on November 4, 1985, is a split, merchant and retailer of specialty coffee, operating in more than 50 countries. Starbucks purchases and roasts whole bean coffees that it sells, along with internal coffee and tea beverages and a variety of fresh food items, through company-operated stores. The company also sells a variety of coffee and tea products and licenses its brand through other channels, such as licensed stores, grocery and national foodservice accounts.. Starbucks has three managing segments: United States (US), International, and Global Consumer Products Group (CPG). Its Seattle’s Best Coffee operating segment is reported in other with its Digital Ventures business. As of October 2, 2011, the company operated 9,031 stores and 4,776 permitted stores. During the economic year ended October 2, 2011 (commercial 2011), in the United States, 49 Company-operated stores were opened, and 51 were closed. Internationally, 180 Company-operated stores were opened, and 36 stores were closed. In October 2010, the Company accomplished Magic Johnson Enterprise’s remaining 50% interest in Urban Coffee Opportunities. In November 2011, the Company gathered Evolution Fresh, Inc.
During the year of 2011, the company acquired the 50% ownership interest in Switzerland and Austria from its common advancement partner, Marinopoulos Holdings S.A.R.L, converting these markets to 100% owned company-operated markets. During the economic year of 2011, the company accomplished the remaining 30% partnership of its business in the southern portion of China from its non-controlling partner, Maxim’s Caterers Limited (Maxim’s). The company together sold its 5% ownership importance in the Hong Kong market to Maxim’s.
The US and International segments both include company-operated stores and approved stores. US operations sell coffee and other beverages, appreciative food, whole bean coffees, and a spotlight selection of merchandise primarily through company-operated stores. Other operations within the United States include approved stores. The Foreign segment includes foodservice which accounts primarily in Canada and the United Kingdom. Its International segment’s largest commerce, based on number of company-operated and licensed stores, are Canada, Japan and the United Kingdom. International operations sell coffee and other beverages, complementary food, whole bean coffees, and a focused selection of merchandise through Company-operated stores in Canada, the United Kingdom, and several other markets. Other operations in international markets primarily include trade store licensing operations in nearly 50 countries and foodservice accounts, primarily in the United Kingdom and Canada.
Consumer packaged goods (CPG) includes both domestic and international sales of wrapped coffee and tea to grocery and warehouse club stores. It also includes resources from product sales to and appointing revenues from manufacturers that produce and market Starbucks and Seattle’s Best Coffee marked products through licensing agreements. The CPG segment includes packaged coffee and