Starbucks Corporation Analysis

The first Starbucks (SBUX) location opened in 1971, and the company has since grown to become the world’s largest coffee purveyor with just over 28,000 stores in more than 75 countries. Starbucks stores sell not just premium coffee but also tea, packaged coffee, juices, bottled water, pastries, and various lunch items.

In addition, the company licenses several of its products, which are available in supermarkets and stores, and sells through other up-and-coming brands such as Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, and Ethos.

In its most recent fiscal year, the vast majority of Starbucks’ sales came from the company’s namesake, company-owned stores.

 -  Company-owned stores: 79% of revenue (growing 5% a year)
 -  Licensed stores: 11% of revenue (growing 9% a year)
 -  Consumer packaged goods: 10% of revenue (growing 3% a year)

By geography, Starbucks generated 70% of its revenue last year in the Americas (U.S., Canada, Latin America); 13% in China / Asia Pacific; and 5% in Europe, Middle East, and Africa. The remaining 12% of revenue was related to channel sales of Starbucks’ products and other business segments.

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