Financial Analysis - Starbucks Corporation
Travis Demmons
Dr. Said
FIN 534 – Financial Management
March 16, 2013
In this assignment, a savvy financial analyst researching companies in which to invest a U.S. publically-traded company that would be a good investment was chosen. After a lengthy search, a company that my family is unduly familiar with, Starbucks, was chosen and in the following pages a financial analysis will be described. The world renowned Starbucks Corporation (New York Stock Exchange: SBUX) has gone from a Seattle-based company to one of the world's most powerful and recognizable brands of high-quality coffee. Starbucks welcomes millions of customers through their doors every day in
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In the food or restaurant industry there are many players within each marketplace. When an individual entity does not have full control over the market, related to price or market share, it is described as a monopolistic perfect competition market. Essentially, that is the type of market that Starbucks finds it in. The basic feature of the food and restaurant market is the large number of players in the market produces similar products but not identical products. In other words, there is a bit of differentiation among the products. It is an open market which allows for freedom of both entry and exit. Competition within the industry is very competitive with a limited amount of market control. The restaurant industry is said to be one of the oldest industries in the economy. As the economy and urbanization grow, so too does the industry of restaurants; it’s for this reason that the industry has been growing at a rapid pace. Even with the restaurant industry ebbing and flowing, there are still new entities entering the fray consistently. Some restaurants may close, but it will not be too long before a new restaurant opens in the place of the old one. Historically, the restaurant industry has contributed nearly 4 percent to the gross domestic product (GDP) of the United States (U.S.) economy. The most recent findings show that the restaurant industry employs more than 12.7 million people (which is approximately equal to 9 percent of the
Topic: An examination into the rise and fall of Starbucks Coffee Company and its relationship to certain microeconomic principles.
Starbucks financial statements were analyzed for the fiscal year ended September 27, 2015. Like all public companies, annual and quarterly financial statements are required to allow regulators and other interested parties to analyze the financial status and management decision making of the company. This analysis focuses on the results of Starbucks most recent published annual report containing their balance sheets, statement of earnings and cash flows. These statements will be analyzed against the results of one of its competitors, Dunkin Donuts, to investigate how the two companies compare to each other. It was noted that Starbucks and Dunkin Donuts do not have corresponding fiscal year ends. The data therefore is not directly comparable since the reports do not reflect the same time period of data but should provide additional insight. The paper will attempt to provide a brief analysis of Starbucks operations in terms of its liquidity, leverage, activity, profitability and growth ratios used by analysts in the industry.
Starbucks is one of the most recognizable coffee retail chains in the world. Their brand focuses on high quality coffee using specialized roasting of beans from many countries around the world.
Starbucks Corporation is the global leader in coffee and has a strong entrepreneurial history of product development and branding. Ranked as both a Fortune 500 and Fortune 1000 Best Company to Work For Starbucks employs 116,357 team members in the United States (Fortune, 2010).
Starbucks Corporation is a globalized coffee company operating successfully since 1931.It had its headquarters in Washington and have branches in more than 63 countries. Starbucks is known for its premium quality and high standard coffee. Starbucks coffee is one of the most
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 University.
Starbucks Corporation, an American coffeehouse and coffee company, was founded in Seattle, WA in 1971. Starbucks has become an industry leader in the roasting, marketing of specialty coffees, and retailing of their various coffee and tea products and accessories around world. Starbucks employs approximately 182,000 people of all walks of life across 21,366 company operated & licensed stores in 65 countries worldwide. Their unique product lines include high quality, hand roasted moderately priced coffees, teas, and numerous fresh food options throughout their stores and other retail outlets, such as grocery stores and specialty shops.
Starbucks is publically traded on the NASDAQ as SBUX, they are a major worldwide coffee company. According to Schultz, Starbucks bases itself on the core value of upholding its company and coffee
Starbucks Corporation, originally founded in 1971, but purchased by Howard Schultz in 1987, is the market leader in selling gourmet coffee (Starbucks, 2008). Starbuck's main objective is to establish itself as the most respected and recognized coffee brand in the world (Fact Sheet, 2008). Starbucks has accomplished this objective and experienced much success through their competitive strategy of clustering several stores within the same community and through their distinctive competencies of roasting and selling the quality coffee while providing high quality customer service. The question is, can Starbucks continue their market share growth with rising competitors? Should they focus more on their international operations?
The above case study is about the rise and fall of Starbucks Coffee. Starbucks’s main business was manufacturing coffee and it was also expanding its location around the world to be more popular with people and famous. Starbucks corporation is the leading roaster, retailer, and marketer of specialty coffee in the world. Its operations include upwards of 7,300 coffee shops and kiosks in the United States, and nearly 3,000 in 34 other countries. However, it was incorporated under the laws of the State of Washington, and Corporation's common stock is listed on NASDAQ, under the trading symbol SBUX.
For this extra credit assignment, I’ll be doing a Porter’s analysis of a well-known brand, Starbucks. And also talk about how there is a future competitive environment of the coffee industry. How other high-end coffee/tea drinks are growing in the market, and how there are so many café’s selling similar drinks. Starbucks is an American global company based in Seattle, Washington. They are the largest coffeehouse company in the world with 20,373 stores in 63 countries and territories. Since 1987, Starbucks has opened an average of two stores per day. In 2013, the company generated revenues of $14.0 billion. They are best known for their hot and cold beverages, and whole-bean coffee. Most of Starbucks stores sell pre-packaged food items such
Starbucks Corporation is a Seattle, Washington-based coffee company. It buys, roasts, and sells whole bean
The degree of competition in the market it operates in, Starbucks’ marketing strategy, its target markets and competitors
The basis of the competitive advantage Starbucks has on the coffee shop industry stems from its ability to market its brand and live up to its mission statement. In addition, Starbucks doesn’t rely solely on its products for obtaining and sustaining the upper hand. According to MarketRealist.com, when customers enter a Starbucks establishment they are taking on an entire process and experience (Krikorian, 2014).