Starbucks Annual Report 2008
Starbucks Corporation Fiscal 2008 Annual Report
Fiscal 2008 Financial Highlights
Stores Open at Fiscal Year End
(COMPANY-OPERATED AND LICENSED STORES)
Net Revenues (IN BILLIONS) & Net Revenue Growth (PERCENTAGES) from Previous Year 16,680 $9.4 $7.8 $6.4 $5.3 $4.1
24% 30% 20% 22% 21%
$10.4
10%
International United States
15,011 12,440 10,241
8,569 7,225
2003
2004
2005
2006
2007
2008
2003
2004
2005
2006
2007
2008
Components of 2008 Revenue Retail Licensing Foodservice & Other
84% 12% 4%
Operating Income (IN MILLIONS) & Operating Margin (PERCENTAGES) $1,054 $894 $781 $606
2008 Revenue Breakdown $421 United States International Global Consumer Products Group
76% 20% 4% 2003 2004 11.5%
12.3% 11.5%
11.2%
$504*
10.3%
4.9% 2005 2006 2007 2008
Comparable Store Sales
(COMPANY-OPERATED STORES OPEN 13 MONTHS OR LONGER)
Net Earnings (IN MILLIONS) & Return on Equity (PERCENTAGES) $564 $494 $673
10% $389 8% 8% 7% $265 5%
20% 17% 14% 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 13% 2008 25% 29%
$315*
– 3% *Includes $267 million in pretax restructuring charges
Dear Shareholders,
When we brought 10,000 partners together in New Orleans last October, Starbucks was at a crossroads. We had just completed a very difficult fiscal 2008, and after 16 years of continuous growth as a public company, we were for the first time talking about slowing growth, store closures and cost reductions. Consumer confidence was approaching all-time lows, and both Wall Street and Main Street were reeling. In the face of these challenges, we made what many believed to be a controversial decision to invest in our people. For me, the decision was obvious. The core of our brand and of our success for more than three decades has been our partners. Our future growth depends on them, and on staying true to the values that made Starbucks the world-class brand it is today. At our Leadership Conference, we
Fiscal 2008 Financial Highlights
Stores Open at Fiscal Year End
(COMPANY-OPERATED AND LICENSED STORES)
Net Revenues (IN BILLIONS) & Net Revenue Growth (PERCENTAGES) from Previous Year 16,680 $9.4 $7.8 $6.4 $5.3 $4.1
24% 30% 20% 22% 21%
$10.4
10%
International United States
15,011 12,440 10,241
8,569 7,225
2003
2004
2005
2006
2007
2008
2003
2004
2005
2006
2007
2008
Components of 2008 Revenue Retail Licensing Foodservice & Other
84% 12% 4%
Operating Income (IN MILLIONS) & Operating Margin (PERCENTAGES) $1,054 $894 $781 $606
2008 Revenue Breakdown $421 United States International Global Consumer Products Group
76% 20% 4% 2003 2004 11.5%
12.3% 11.5%
11.2%
$504*
10.3%
4.9% 2005 2006 2007 2008
Comparable Store Sales
(COMPANY-OPERATED STORES OPEN 13 MONTHS OR LONGER)
Net Earnings (IN MILLIONS) & Return on Equity (PERCENTAGES) $564 $494 $673
10% $389 8% 8% 7% $265 5%
20% 17% 14% 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 13% 2008 25% 29%
$315*
– 3% *Includes $267 million in pretax restructuring charges
Dear Shareholders,
When we brought 10,000 partners together in New Orleans last October, Starbucks was at a crossroads. We had just completed a very difficult fiscal 2008, and after 16 years of continuous growth as a public company, we were for the first time talking about slowing growth, store closures and cost reductions. Consumer confidence was approaching all-time lows, and both Wall Street and Main Street were reeling. In the face of these challenges, we made what many believed to be a controversial decision to invest in our people. For me, the decision was obvious. The core of our brand and of our success for more than three decades has been our partners. Our future growth depends on them, and on staying true to the values that made Starbucks the world-class brand it is today. At our Leadership Conference, we