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Financialreportanalysis;Thestarbuckcompanysobjectiveistoestablishstarbucksasthemost;recognizedandrespectedbrandintheworld.Inrealizingandachievethisgoal;Starbuckscompanyisdisciplined,ongoingeffortstoelevatethevalueandrelevance;oftheStarbucksbrand,continuedinnovationandthesuccessoftheireffortstodeepen;theirconnectiontocustomersandcommunitiesaroundtheworld.;Therearefourdifferentreportableoperatingsegments.;Q4AmericasSegmentResults;NetrevenuesfortheAmericassegmentwere$2.8billioninQ4FY13,anincreaseof;11%overQ4FY12.Theincreasewasprimarilyduetoan8%increaseincomparable;storesales.Alsocontributingtothenetrevenueincreasewasincrementalrevenue;from680netnewstoreopeningsoverthepast12months.;Operatingincomeincreasedto$605.9millioninQ4FY13,growthof16%compared;to$523.6millionforthesameperiodayearago.Operatingmarginof21.8%;expanded100basispointscomparedtotheprioryearquarterandwasprimarily;drivenbysalesleverage.;Q4EMEASegmentResults(EMEA:Europe,theMiddleEastandAfrica);NetrevenuesfortheEMEAsegmentwere$293.4millioninQ4FY13,anincreaseof;3%overQ4FY12.Theincreasewasduetolicensedstoresrevenuegrowthof26%;primarilydrivenbytheopeningof129netnewstoresinthelast12months.A2%;increaseincomparablestoresalesalsocontributedtothenetrevenueincrease.;Operatingincomeincreasedto$27.3millioninQ4FY13,fromalossof$6.7million;intheprioryearquarter.Operatingmarginexpanded1,170basispointsto9.3%;primarilydrivenbylowercostsrelatedtostoreportfoliooptimizationactivitiesthat;beganinQ4oftheprioryear.;Q4China/AsiaPacificSegmentResults;NetrevenuesfortheChina/AsiaPacificsegmentwere$255.7millioninQ4FY13,an;increaseof29%overQ4FY12.Theincreasewasprimarilyduetoincremental;revenuefrom588netnewstoreopeningsoverthepast12months.An8%increasein;comparablestoresalesalsocontributedtothenetrevenueincrease.;Operatingincomeof$96.0millioninQ4FY13increased46%comparedtothesame;periodayearago.Operatingmarginexpanded440basispointsto37.5%thisquarter;comparedto33.1%inQ4FY12.Themarginexpansionwasprimarilydrivenbysales;leverageandloweroperatingcosts,aswellasareductiontotheestimatedasset;retirementobligationsofourstoreleasesintheregion.;Q4ChannelDevelopmentSegmentResults;NetrevenuesfortheChannelDevelopmentsegmentwere$360.9millioninQ4FY13;anincreaseof13%overQ4FY12.Theincreasewasprimarilydrivenbyincreased;salesofpremiumsingleserveproducts.Foodservicerevenuegrowthof13%also;contributedtotheincrease.;Operatingincomegrew30%to$128.4millioninQ4FY13comparedto$98.9million;forthesameperiodayearago.Operatingmarginincreased450basispointsto35.6%;inQ4FY13comparedtotheprioryearperiod.Themarginexpansionwasprimarily;duetolowercoffeecostsandsalesleverage.;Q4AllOtherSegmentsResults;NetrevenuesforAllOtherSegmentswere$105.5millioninQ4FY13,anincreaseof;102%overQ4FY12,primarilydrivenbytheadditionofTeavanaretailstoresales;beginninginQ2ofFY13.;Q4FY13operatinglosswas$16.5millioncomparedtoalossof$8.6millioninQ4;FY12.Theincreasedoperatinglosswasdrivenbyinvestmentspendingonemerging;brands.;FiscalYear2013Highlights;Totalnetrevenuesincreased12%to$14.9billion;Globalcomparablestoresalesgrew7%,drivenbya5%increaseintraffic;7%compgrowthintheAmericas,drivenby8%compgrowthintheU.S.;CompsalesflatinEMEA,trafficincreased2%;9%compgrowthinChina/AsiaPacific,drivenbya7%increaseintraffic;Consolidatedoperatingincomeincreased23%to$2.5billion;Consolidatedoperatingmarginexpanded150basispointstoarecord16.5%;Earningspershareincreased26%to$2.26pershare,includingnonroutinegainsof;$0.03inQ2and$0.03inQ4onthesaleofStarbucksequityinMexico,Chileand;Argentinajointventures;Opened1,701netnewstoresintheyear,endedfiscal2013with19,767stores;globally;Returned$1.2billiontoshareholdersthroughdividendpaymentsandshare;repurchases;Starbucks&ItsOrganizationalDesign;BasicStructure;ThestructureoftheStarbucksCorporationisnotanuncommonone.Starbucks;executivesoverseethecompanyfromitsheadquartersinthecityofitsbirth,Seattle;Washington.Aroundthecountry,districtmanagersoverseeregionalgroupingsof;stores.ThesedistrictmanagersreportdirectlytotheStarbucksCorporation.Ateach;store,astoremanageractsasthechief.Underthisstoremanagerarecollectionsof;shiftsupervisorswhoactasmanagersondutywhenthestoremanagerisout.Below;theshiftsupervisorsaretherestoftheemployees,referredtoasbaristas.;LicensedStores;Starbucksdoesnotoperateunderafranchisesystem,however,theydolicense;storefronts.Licensedstoresarecommoningrocerystores,bookstoresoranyother;sitewheretheStarbucksisnotastandalonebuilding.Theselicensedstoresarestill;controlledbyStarbucksCorporationandmustadheretothesamestringentguidelines.;Allitemssoldatlicensedstores,includingfoods,mustbeapprovedbyStarbucks;corporateoffices.Starbucksmaintainsthiscontrolinanattempttoprotectthe;companynameandensurethatitremainsonethatisassociatedwithquality.;Partners;Fromtheindividualwhomakesyourdecafcappuccinotothepersontowhomyou;handyourmoneyandexchangeasmile,allStarbucksworkersarepartnersinthe;company.WhileStarbucksworkersalsohavemorespecifictitles,includingbarista;andshiftsupervisor,theStarbuckscorporationhaslongreferredtotheirworkersas;partners."ThistermisintendedtomakeclearhowintegralStarbucksemployees,no;matterhowlowonthechain,aretothecompany'ssuccess.;Responsibility;SocialresponsibilityisakeystoneprincipleattheStarbucksCoffeeCompany.;Starbucksaimstoworkethicallywithallofitssuppliers,offeringtheprovidersof;theirfineArabicacoffeesfairvalueforthebeanstheyworksohardtogrow.The;companyalsopracticesenvironmentalfriendliness,choosingecofriendlyoptions;wheneverpossible.Forexample,insteadofthrowingawayspentcoffeegrounds;duringthesummerseason,thesegroundsareleftoutforgreenthumbedcustomers;whowanttousethemintheirgardensasasourceofacidforthesoil.;Reference;2013StarbucksCompanyFinancialReport;Starbucks&ItsOrganizationalDesign,byErinSchreiner,DemandMedia

 

Paper#23786 | Written in 18-Jul-2015

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