SBUX  Starbucks Corporation

Exchange

NASDAQ

Sector

Consumer Services

Industry

Restaurants

Market Cap.

91.66B

Competitive Industry over the past 10 years

SBUX is likely operating in an industry with medium to low barriers to entry. This may mean that SBUX doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that SBUX invests heavily in R&D and Sales, General & Administrative expenses.

Only $8.43 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Net Income 672.64M 315.50M 390.80M 945.60M 1.25B 1.38B 8.80M 2.07B 2.76B 2.82B
divided by
Revenue 9.41B 10.38B 9.77B 10.71B 11.70B 13.30B 14.89B 16.45B 19.16B 21.32B
Net Profit Margin 7.15% 3.04% 4.00% 8.83% 10.65% 10.41% 0.06% 12.57% 14.40% 13.22%

Strong Pricing Power over the past 10 years

SBUX has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$50.55 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Gross Profit 2.20B 1.99B 5.45B 6.25B 6.75B 7.49B 8.51B 9.59B 11.38B 12.80B
divided by
Revenue 9.41B 10.38B 9.77B 10.71B 11.70B 13.30B 14.89B 16.45B 19.16B 21.32B
Gross Margin 23.34% 19.19% 55.75% 58.36% 57.70% 56.29% 57.14% 58.30% 59.36% 60.07%

High Capital Intensity over the past 10 years

SBUX spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

1,397.41% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Capital Expenditure 1.08B 984.50M 445.60M 440.70M 531.90M 856.20M 1.15B 1.16B 1.30B 1.44B
divided by
Net Income 672.64M 315.50M 390.80M 945.60M 1.25B 1.38B 8.80M 2.07B 2.76B 2.82B
Capital Expenditure Ratio 160.61% 312.04% 114.02% 46.61% 42.70% 61.83% 13,081.82% 56.14% 47.25% 51.09%