Starbucks Financial Analysis
Starbucks Corporation, one of the leading companies of the United States, has shown positive financial developments in the first quarter of the year 2011. According to the reports of the US segments, the company has generated an income of $2,950.80 million till the thirteenth week of the year 2011. The reports also indicate that the operating income of the company is recorded to be $501.9 million while the operating margin has made significant development by seventeen percent. The comparable store sale has grown by seven percent and the EPS is recorded at $0.45 million.
The international segment of the company has also made some positive developments in the opening month of January and the revenues are recorded at 640.0 million dollars. Financial reports of the company state operating income to be $104.5 million. The operating margin has developed by 16.3 percent while the comparable store sale is five percent, after the thirteenth week of the year 2011.
Starbucks had undertaken a restructuring program which lasted from 2008-2010 and the restricting costs had been a part of the company’s financial report during that period. As the restructuring program has been completed, the expenses on that account were not mentioned in the fiscal reports of the first quarter of the year 2011. With the waiver of the restructuring costs from the accounts of 2011, Starbucks annual report 2011 is expected to be much better than that of the previous year 2010.
As per the reports of the company officials, an increase of net revenue has hit the illusive figure of three billion dollar which is eight percent higher than the net revenue of the company in last year. With five percent traffic growth and two percent average ticket growth, the company has recorded total growth of seven percent in the comparable sales accounts. The US comparable sales is better than the international market as it has received by eight percent with two percent in average tickets and six percent in traffic. Comparable growth of international market is only by five percent and the company has planned initiatives to make it higher in the next quarters.
Seventeen percent growth in the consolidated operating margin is a record for the company. The GAAP points have increased by 400 basis points while the non-GAAP basis points have increased by 340 basis points. Apart from declaring the financial developments in the first quarter of 2011, the company has also discussed its future highlights for the ongoing financial year.