Axia College of University of Phoenix
Starbucks Financial Analysis
Starbucks Coffee originated in 1971 as a coffee and tea café opening in a small neighborhood of Seattle, Washington (Starbucks Corporation, 2010). Starbucks continued its service for Seattle residents for a decade when the new director of retail operations and marketing, Howard Shultz, decided to make some beneficial changes to the company. After two years of employment Howard Shultz decided to expand Starbucks outside of the Seattle area. In 1987 Starbucks was entering in the coffee market and the few numbers of Starbucks were now becoming a corporation (Starbucks Corporation, 2010). Fast forwarding to current times, Starbucks is now located across America and has branched out into international territory. Starbucks now ranges from selling coffees, teas, food, and coffee accessories to having its name brand coffees being sold in grocery stores. Statement of Earnings
Starbucks Corporations 2009 fiscal year ended on September 28, 2009 (Starbucks Corporation, 2010). In comparison with the 2008 Statement of Earnings, Starbucks Corporation has experienced an increase in net earnings totaling $390 million in 2009 (Starbucks Corporation, 2010). This is still significantly lower than the 2007 net earnings of $672 million dropping $360 million over the course of one year. The company was however able to increase the cost of goods sold. Compared to the 2008 gross profit margin when Starbucks experienced a large increase, in 2009 Starbucks experienced a decline by 2.25% (Starbucks Corporation, 2010). In the 2009 fiscal year the Statement of Earnings depicts a depreciation and amortization expenses decreased and operating income and operating margin decrease. The decrease in sales which Starbucks reported in 2008 is cause for the decrease in operating income and operating margin in the 2009 fiscal year. Since the 2008 fiscal year, 2009 has brought on a 4% decrease...