The Starbucks Corporation is a massive American coffee house that I am sure many of you are familiar with as their stores are all over the place. The company began as a small coffee house that was the dream of Jerry Baldwin, Zev Siegl, and Gordon Bowker. They wanted to create a coffee shop that would provide customers with high quality coffee beans and coffee equipment such as expresso machines. The very first Starbucks Coffee shop opened up in Seattle, where the company is headquartered out of back in 1971. However at the time Starbucks only sold roasted whole coffee beans and equipment, they did not brew their own coffee. During the 1980’s Starbucks saw a decent amount of growth in certain markets of the United States. The company was brought public in 1991 and since then it has grown to be the biggest coffeehouse company in the entire world. With over 23,000 stores all across the world Starbucks has been hugely successful. Starbucks has been criticized for some for their expansion strategies that include buying up competitors leases, over-saturating certain markets, and even intentionally operating at a loss. Regardless, they are still an immense company today and saw over $14 billion dollars in revenue last year. Since they are so large and successful we are going to look at their biggest financial highlights from the early quarters of 2014.
5. Their stock has gone down over 4% since July
Starbucks stock has recently dipped slightly in the recent 3rd quarter and has seen a steady decline since around July. From April to June their stock rose from $68.73 dollars per share on April 11th, to $79.45 dollars per share on July 9th. However since then their stock has generally gone down, albeit slightly.
4. Their long term debt has gone up
At the end of the second quarter of 2013 Starbucks had accumulated $549.7 million dollars of long term debt from a variety of sources. Since then that debt has only gone up and now as of June 29th, Starbucks has more than $2.048 billion dollars of long term debt. The company should be able to cover the cost however.
3. Their gross profit went down more than $1 billion from Q1 to Q2
While sales are typically are very good for Starbucks, their gross profit fell from $2.379 billion dollars on March, 30th to $1.265 billion dollars for the quarter ending on June, 29th.
2. They were able to decrease their operating expenses over $3 billion
Since Starbucks is such a large global company it should be no surprise that they have a large amount of operating expenses. In Q1 of 2014 they had $6.655 billion dollars of operating expenses but were able to bring those down to $3.385 billion dollars in Q2.
1. Their total revenue has gone down around $4 billion
Starbucks saw their revenue take a dive from the first quarter of 2014 to the second quarter. In the first quarter they incurred $8.113 billion dollars of revenue, but in the second quarter they only saw $4.153 billion dollars of revenue.
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