Starbucks Corp. (NASDAQ:SBUX)

Reported Net Earnings Attributable to Starbucks

The reported net earnings demonstrate significant fluctuations over the six-year period. Starting at approximately 3.6 billion USD in 2019, the earnings sharply declined to around 928 million USD in 2020, likely reflecting adverse economic conditions during that year. Thereafter, a substantial recovery occurred in 2021, with net earnings rising to nearly 4.2 billion USD. However, this was followed by a dip in 2022 to approximately 3.28 billion USD. The earnings rebounded again in 2023, reaching about 4.12 billion USD, before experiencing a moderate decrease to roughly 3.76 billion USD in 2024.

Adjusted Net Earnings Attributable to Starbucks

The adjusted net earnings, which may exclude certain one-time items or non-recurring expenses, closely mirror the reported net earnings trend with slight variances. These earnings start at approximately 3.61 billion USD in 2019, then fall significantly to around 935 million USD in 2020. The following year sees a marked recovery to about 4.2 billion USD. Adjusted earnings reduce in 2022 to near 3.26 billion USD, increase again in 2023 to approximately 4.13 billion USD, and then slightly decline in 2024 to about 3.77 billion USD.

Trend Analysis and Insights

The data reveals a pronounced impact on earnings during 2020, likely due to extraordinary external factors affecting the business environment. A strong rebound in 2021 suggests effective recovery strategies or improving market conditions. Subsequent years show ongoing variability, with alternating decreases and increases in earnings, indicating continued sensitivity to market dynamics or operational challenges. The close alignment between reported and adjusted earnings throughout the periods suggests that extraordinary items do not materially distort the financial performance trends.

The financial data reveals distinct trends in profitability and returns over the observed periods. Both reported and adjusted net profit margins display a significant decline in the year ending 2020, followed by a recovery in subsequent years, though they do not fully return to the initial 2019 levels. Specifically, the net profit margin fell sharply to approximately 4% in 2020 from around 13.6% in 2019, then rebounded to about 14.4% in 2021, before declining moderately but remaining above 10% in the latest periods.

A similar pattern is evident in the reported and adjusted return on assets (ROA). The ROA decreased markedly in 2020 to just over 3%, a steep drop from nearly 19% in 2019. This decline indicates a considerable reduction in asset profitability during that year. Recovery occurred in subsequent years with ROA climbing back above 13% in 2021, then fluctuating moderately, ultimately resting around 12% in 2024. The adjusted ROA closely follows the reported figures, indicating consistency between the two measures.

Data on reported and adjusted return on equity (ROE) is absent for all periods, limiting analysis of shareholder returns. However, the observable data on net profit margins and ROA suggests that while profitability and asset efficiency experienced volatility around 2020, there was a notable recovery afterwards. The trends imply external or internal factors may have impacted financial performance in 2020, followed by a phase of stabilization and moderate decline in profitability metrics in recent years.

Net Profit Margin

Sharp decline in 2020 followed by a strong recovery in 2021; stabilizing above 10% thereafter but below 2019 levels.

Return on Assets (ROA)

Severe dip in 2020, recovery in subsequent years with moderate fluctuations, ending near 12% in 2024.

Return on Equity (ROE)

Data unavailable, no analysis possible.

Net Earnings Attributable to Starbucks

Over the observed periods, reported net earnings exhibited significant variability. Starting at approximately $3.6 billion in late 2019, earnings sharply declined to below $1 billion in 2020, likely reflecting external challenges impacting profitability. Subsequently, a strong recovery occurred in 2021, with net earnings reaching approximately $4.2 billion, marking the highest value in the series. Thereafter, there was a decrease in 2022 to roughly $3.3 billion, followed by partial recovery in 2023 and 2024 with values around $4.1 billion and $3.8 billion respectively. The adjusted net earnings mirrored this pattern closely, with minor deviations, confirming consistency in the underlying performance when excluding special items.

Net Profit Margin

The reported net profit margin demonstrated a pattern similar to net earnings. It started at 13.58% in 2019 but dropped markedly to 3.95% in 2020, indicating a substantial reduction in profitability margin possibly due to adverse market conditions or costs incurred. The margin rebounded strongly in 2021 to over 14%, the highest point among the periods reviewed. After this peak, the margin declined to approximately 10.18% in 2022 and experienced slight fluctuations around 10.4%-11.5% in the subsequent years. The adjusted net profit margin followed the reported margin very closely, with negligible differences, underscoring the stability of operational profitability after adjustments.

Summary of Trends and Insights

Both reported and adjusted figures for net earnings and net profit margins reveal a period of significant disruption in 2020, followed by a robust recovery in 2021. However, 2022 saw a retreat from the peak performance levels, with 2023 and 2024 showing stabilization but not a return to prior highs. The close alignment between reported and adjusted results suggests consistent underlying earning power despite adjustments. The data indicates the company experienced an external impact affecting earnings and profitability in 2020, with resilient recovery efforts thereafter, though market conditions or strategic decisions may have moderated peak profitability gained in 2021.

The financial data over the six-year period presents several notable trends regarding net earnings attributed to the company, both reported and adjusted. The reported net earnings show a significant decline from 3,599,200 thousand US dollars in 2019 to a low of 928,300 thousand US dollars in 2020, reflecting a sharp contraction during that period. This decline could be indicative of external factors impacting operations or market conditions in 2020. However, there is a strong recovery evident in 2021, with reported net earnings rebounding to 4,199,300 thousand US dollars, surpassing 2019 levels. Following this recovery, earnings demonstrate some fluctuations but remain relatively strong, ranging from approximately 3,281,600 to 4,124,500 thousand US dollars through 2024.

The adjusted net earnings mirror a similar trajectory, which suggests that non-recurring items or adjustments from reported values have minimal impact on overall earnings trends. Adjusted net earnings also plummet in 2020 to around 934,800 thousand US dollars, followed by a robust increase to 4,196,600 thousand US dollars in 2021. Subsequent years show adjusted net earnings remaining stable and consistent with reported figures, within the range of 3,264,400 to 4,127,000 thousand US dollars.

It is also notable that adjusted net earnings tend to be slightly higher than reported figures, though the differences are marginal. This pattern indicates relatively stable reporting practices and minor adjustments affecting the net earnings reported.

The absence of reported and adjusted Return on Equity (ROE) data limits the ability to analyze profitability relative to shareholders' equity, which would provide further insight into operational efficiency and shareholder value creation.

Summary of Trends

The company experienced a pronounced earnings decline in 2020, followed by a significant recovery in 2021 that restored earnings to, and then slightly above, pre-2020 levels.

From 2021 onward, reported and adjusted net earnings remain strong but exhibit some volatility, indicating fluctuations in operational or market conditions without a clear upward or downward trend.

Adjusted net earnings closely track reported net earnings, suggesting minimal impact from special adjustments or non-recurring items in the calculation of net earnings.

The lack of available ROE data restricts analysis of profitability efficiency in relation to equity investment during the periods evaluated.

Net Earnings Attributable to Starbucks

The reported net earnings show significant variability over the periods analyzed. A sharp decline occurred in the year ending September 27, 2020, dropping to 928,300 thousand US dollars from 3,599,200 thousand US dollars the previous year. This was followed by a robust recovery in the subsequent year, reaching 4,199,300 thousand US dollars, before experiencing a moderate decline and then a slight increase again. The investment-adjusted net earnings closely follow the same trend, with values marginally higher or lower than reported net earnings but maintaining a similar pattern of a steep drop in 2020, strong rebound in 2021, and stabilization around the 3.7 to 4.1 million thousand US dollars range in the later years.

Return on Assets (ROA)

The reported ROA reflects fluctuating profitability relative to asset base over the years. It dropped sharply from 18.73% in 2019 to 3.16% in 2020, corresponding with the decrease in net earnings. Subsequently, it recovered to 13.38% in 2021 and maintained a level above 11% through 2024, peaking at 14.01% in 2023 before settling at 12.00% in 2024. The adjusted ROA mirrors this trend closely with minimal differences, indicating consistency between reported and adjusted profitability metrics.

Overall Trends and Insights

The data indicates the material impact of adverse conditions in 2020, likely due to external factors affecting business performance, as evidenced by the steep decline in earnings and profitability metrics. Recovery is evident from 2021 onwards, with net earnings surpassing pre-2020 levels in some periods and returns on assets improving significantly but not fully reaching the 2019 benchmark by 2024. The close alignment between reported and adjusted figures suggests that underlying operational fundamentals remain consistent after adjustments, offering a reliable picture of financial performance. The stabilization of earnings and ROA in recent years indicates a phase of operational normalization and steady-state earnings generation.