According to Morningstar, Starbucks Corporation’s revenues have consistently grown from $10,707 million USD in 2010 to $16,448 million USD in 2014. Starbuck’s revenue over the five-year period indicates the company has strong brand recognition with consumers for its high-quality products. Additionally, a rapid pace of growth domestically and internationally has created a large target market, which positively influenced revenues. Furthermore, the introduction of Starbucks and Tazo brand single serve K-cup packs into grocery stores and other retail stores has significantly increased Starbucks revenue. Even during the economic financial crisis in the United States, Starbucks revenue continued on an upward trend. The company’s gross profit showed a continuous rise between the years of 2010 to 2014. Starbuck’s gross profit was under one million each year from 2010-2012. For each year proceeding 2012, the company’s gross profit increased to slightly over one million. Therefore, Starbucks positive increase in profits over the last five years is a great indication that the company is stable and worth investing in. Most impressively, the company has been able to reduce the percentage of sales devoted to cost of goods sold and sales, general, and administrative expenses. Sales, general, and administrative expenses have declined over the last five years from 38.39% to 34.23%. Starbucks operating expense of 0.49% in 2010 went towards restructuring, merger, and acquisition. Starbucks other operating expenses from 2010-2012 were comparably stable with an average around 7.6%, but there was a profound increase in 2013 to 24.25%, which dropped dramatically down to 5.34% in 2014. Starbucks total operating expense remained relatively constant the first three years, rising significantly to 59.33% in 2013 and then
According to Morningstar, Starbucks Corporation’s revenues have consistently grown from $10,707 million USD in 2010 to $16,448 million USD in 2014. Starbuck’s revenue over the five-year period indicates the company has strong brand recognition with consumers for its high-quality products. Additionally, a rapid pace of growth domestically and internationally has created a large target market, which positively influenced revenues. Furthermore, the introduction of Starbucks and Tazo brand single serve K-cup packs into grocery stores and other retail stores has significantly increased Starbucks revenue. Even during the economic financial crisis in the United States, Starbucks revenue continued on an upward trend. The company’s gross profit showed a continuous rise between the years of 2010 to 2014. Starbuck’s gross profit was under one million each year from 2010-2012. For each year proceeding 2012, the company’s gross profit increased to slightly over one million. Therefore, Starbucks positive increase in profits over the last five years is a great indication that the company is stable and worth investing in. Most impressively, the company has been able to reduce the percentage of sales devoted to cost of goods sold and sales, general, and administrative expenses. Sales, general, and administrative expenses have declined over the last five years from 38.39% to 34.23%. Starbucks operating expense of 0.49% in 2010 went towards restructuring, merger, and acquisition. Starbucks other operating expenses from 2010-2012 were comparably stable with an average around 7.6%, but there was a profound increase in 2013 to 24.25%, which dropped dramatically down to 5.34% in 2014. Starbucks total operating expense remained relatively constant the first three years, rising significantly to 59.33% in 2013 and then