Starbucks Strategy Analysis

In: Business and Management

Submitted By majac
Words 44548
Pages 179
Our customers voted us the #1 Best
Coffee in the annual Zagat ® survey.

1

4

2

We found a small way to make our
Starbucks Cards even more convenient.
3

We made sure our customers will never be without great coffee.

AUTHOR

STARBUCKS
CORPORATION

TITLE

ANNUAL REPORT
YEAR

FISCAL 2010

FISCAL 2010
FINANCIAL HIGHLIGHTS
Net Revenues (in Billions)

Comparable Store Sales Growth
(Company-Operated Stores Open 13 Months or Longer)
$10.4

$9.4

$10.7
$9.8

7%

7%
5%

$7.8

–3%

–6%
2006

2007

2008

2009

2010

2006

Operating Income (in Millions) & Operating Margin (in %)
GAAP
Non-GAAP

GAAP
Non-GAAP

2007

2008

2009

2010

Operating Income by Segment, Excluding Other
United States

$1,472*

International

Global CPG

$53
$1,419

$1,054

13.8%*

$894
11.5%

$894*

18%

13.3%

$843*

11.2%

$332
$339

15%

9%

12%
73%

8.1%*
4.9%
2006

2007

2008

$562
$504
5.7%
2009

2010

2006

Earnings per Diluted Share
GAAP

73%

9.2%*

2010

Operating Cash Flow & Capital Expenditures (in Millions)
C ash from
Operations

Non-GAAP

Capital
Expenditures

$1.28*

$1,705

$0.04
$1.24
$0.87
$0.71**

$0.71*

$1,132

$0.80*

$1,389

$1,331

$1,259
$1,080

$985

$0.28
$771

$0.28
$0.52

$446

$441

$0.43

2006

2007

2008

2009

2010

* Non-GAAP measure. Excludes $339, $332 and $53 million in pretax restructuring and transformation charges in 2008, 2009 and 2010, respectively.

2006

2007

2008

2009

2010

** 2006 includes $0.02 of expense resulting from the cumulative impact of the adoption of an accounting change for asset retirement obligations.

Dear Shareholders,
Perhaps more than any other time in Starbucks history, I write to you feeling extremely proud of what…...

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