Financial Analysis of Starbucks - 1131 Words

The company that I am writing about is Starbucks, the international coffee shop chain. The companys financial statements for this analysis are from the FY2011 Annual Report and 10-K. The company has 10787 stores in the United States, of which 38% are franchised and the remainder are company-owned. The franchise model is more common when the company operates internationally. There are 6216 Starbucks stores internationally and of these 63% are franchises, with just 37% company-owned. The franchise model for international expansion has been utilized to help Starbucks expand quickly in foreign countries and to mitigate foreign political risk and to ensure that the product/service offering is tailored to local tastes (Thompson, 2012). The company is now in the process of buying back some overseas franchise stores in order to retain more profits for itself (Franchise Press, 2011). This paper will take a look at the companys most recent annual report to analyze the financial statements. Debt Starbucks does not have a lot of long-term debt. There was a point in the mid-2000s where Starbucks was struggling, closing stores and seeing reduced profitability. In August of 2007 the company made its first (and to this point only) debt issue. The issue was for $550 million at 6.25% on a 10-year issue (Trent, 2007). This debt remains on the companys books today, as $549.5 million on the balance sheet in long-term debt. The total liabilities that Starbucks has on its balance sheetShow MoreRelatedStarbucks : Starbucks Financial Analysis1185 Words   |  5 PagesStarbucks Financial Analysis It’s hard to drive the street these days and not see a Starbuck’s coffee house sitting on a corner with cars lined up in the drive-thru or consumers gathering in their cafà © to socialize. This has been the scene since the first Starbucks was opened in 1971. Since then, Howard Schultz, chairman and CEO, has embarked on a quest to bring Italian bistro traditions to the United States. Starbucks mission statement is simple, â€Å"to inspire and nurture the human spirit – oneRead MoreStarbucks Financial Analysis1739 Words   |  7 PagesStarbucks Financial Analysis Financial Analysis of the Starbucks Corporation 2401 Utah Avenue South Seattle, Washington 98134 (800) 235-2883 Financial Analysis of the Starbucks Corporation Company Overview Starbucks is the world’s largest specialty coffee retailer, Starbucks has more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarilyRead MoreStarbucks Financial Analysis9358 Words   |  38 PagesRunning head: STARBUCKS AS AN INTERNATIONAL BUSINESS 1 An Analysis of Starbucks as a Company and an International Business Lauren Roby A Senior Thesis submitted in partial fulfillment of the requirements for graduation in the Honors Program Liberty University Spring 2011 STARBUCKS AS AN INTERNATIONAL BUSINESS Acceptance of Senior Honors Thesis This Senior Honors Thesis is accepted in partial fulfillment of the requirements for graduation from the Honors Program of Liberty UniversityRead MoreStarbucks : Financial Ratios Analysis1788 Words   |  8 PagesStarbucks: Financial Ratios Analysis Part 4 Anna Gallagher American Public Universityâ€Æ' Property, plant and equipment are the major source of future service potential to companies. The major objectives of property, plant and equipment accounting is to provide information about companies’ stewardship, accounting for the use and deterioration of property, plant and equipment, plan for project costing and budgeting, provide information for tax authorities, and provide rate-making information for regulatedRead MoreFinancial Analysis: Starbucks Corporation628 Words   |  3 PagesFinancial Analysis Starbucks (Starbucks) is a publicly held company that sells gourmet coffees, as well as, a sandwich and desert menu. They operate in the United States, as well as, international countries. Starbucks has delicious coffees that are very popular with the public and has a growing popularity. By comparing Starbucks financial information with the financial information of one of their biggest competitors, Dunkin Donuts (Dunkin Donuts), it will show the actual competitive edge ofRead MoreAnalysis Of Starbucks Financial Statement1883 Words   |  8 PagesAnalysis of Starbucks’ Financial statement Financial statements provide users with information for evaluating an entity’s performance and financial status and thus help them to make informed decisions in their dealings with the entity. To assess these aspects, the users have various tools that they can employ. For instance, ratio analysis helps the users to detect any significant changes in an entity’s operating performance within a given period and thus indicate the risks and opportunities of theRead MoreFinancial Analysis of Starbucks Essay2500 Words   |  10 Pagesit was used in the 1950s. This can be said to have changed a lot as Espresso, Cappuccinos, Macchiato, Cafà © Lattes and Frapuccinos which are now being offered by many restaurants and coffee shops that are found in the main town across the world. Starbucks was created in the year 1971 in Washington. The establishment was done by three scholars who are namely Zev Siegel, Jerry Baldwin and Gordon Bowker. The chief executive officer joined the compa ny in the year 1981 and became in charge of the marketingRead MoreStarbucks : Financial Ratios Analysis2630 Words   |  11 PagesStarbucks: Financial Ratios Analysis Part 3 Anna Gallagher American Public Universityâ€Æ' This financial paper part three will discuss different financial ratios of Starbucks, McDonalds, and Dunkin’ Donuts. These ratios are return on assets, profit margin, asset utilization rate, current ratio, acid test ratio, operating cash flow ratio, accounts receivable turnover, days’ sales outstanding, inventory turnover, and days’ sales in inventory. This paper will also present and discuss the free cash flowRead MoreFinancial Analysis Project : Starbucks2056 Words   |  9 PagesDavid Pulido Mr. Norcio Financial Management 22 April 2015 Financial Analysis Project Starbucks is a privileged company connected to millions of customers every day with great products in the market and more than 20,000 retail stores in 65 countries. Starbucks day to day mission is to serve the best coffee, which is why they have all their coffee grown under the best standards of quality. Starbuck’s coffee employees or the people in charge to get the coffee, travel to coffee farms in differentRead MoreStarbucks Financial Analysis 03-072727 Words   |  11 PagesThe American University in Cairo Acct 501 Spring 08 Starbucks Financial Analysis Years 2003-2007 Presented to: Dr. Adel Ibrahim Presented by: Ahmed El-Shorbagy 800-07-0477 Ahmed Tawfik 900-98-5749 Mahmoud El Gindy 800-07-0417 Mohammed Abo Solyman 900-02-1301 Mohammed Hassan 800-07-1982 Table of Contents Executive Summary 3 Introduction 4 Financial Statement Analysis 5 Consolidated Balance Sheet 5 Consolidated Income Statement 5 Consolidated Cash Flow