Starbucks Corp. (NASDAQ:SBUX)

The financial data reveals the trends in both reported and adjusted net earnings attributable to Starbucks over a six-year period. A comprehensive analysis of these figures highlights several important patterns and changes.

Reported Net Earnings Attributable to Starbucks

The reported net earnings show a significant increase from 928,300 thousand US dollars in 2020 to a peak of 4,199,300 thousand US dollars in 2021, representing a substantial growth within one year. Following this peak, the earnings decreased to 3,281,600 thousand in 2022 but then rebounded to 4,124,500 thousand in 2023, close to the highest level during the six-year span. However, the subsequent years show a downward trend, with earnings dropping to 3,760,900 thousand in 2024 and further declining sharply to 1,856,400 thousand in 2025. This pattern indicates volatility in profitability, with a peak early in the period followed by a gradual but marked reduction in the most recent years.

Adjusted Net Earnings Attributable to Starbucks

The adjusted net earnings, which account for investment-related and other adjustments, exhibit a similar trajectory to the reported net earnings. Beginning at 934,800 thousand US dollars in 2020, the adjusted earnings rise dramatically to 4,196,600 thousand in 2021. Afterward, there is a decline to 3,264,400 thousand in 2022, followed by an increase to 4,127,000 thousand in 2023. Subsequently, adjusted earnings slightly increase to 3,770,000 thousand in 2024 but then fall markedly to 1,858,300 thousand in 2025.

The close alignment between reported and adjusted net earnings across the period suggests that adjustments have a minimal impact on the overall earnings trend, reinforcing the observed fluctuations as reflective of underlying business performance rather than accounting adjustments.

Overall Trends and Insights

The data indicates a period of strong growth and profitability early in the analyzed timeframe, particularly in 2021. This is followed by cyclical fluctuations and a downward trend in the later years. The pronounced decline in both reported and adjusted net earnings in 2025 raises considerations about potential challenges affecting profitability during the most recent period.

The similarity between reported and adjusted net earnings demonstrates consistency and transparency in the earnings reporting, emphasizing that the core business profitability has experienced significant variability. This volatility merits further investigation into the underlying drivers, such as market conditions, operational changes, or external economic factors.

The analysis of the financial margins and returns over the observed periods reveals notable fluctuations with an overall pattern of growth followed by a decline in the most recent years.

Net Profit Margin (Reported and Adjusted)

Both reported and adjusted net profit margins exhibit a similar trajectory throughout the periods reviewed. Starting at approximately 4% in 2020, the margins peaked notably in 2021 at around 14.4%. Subsequently, there was a decrease over the next years, with a moderate recovery seen in 2023 reaching approximately 11.5%. The values then declined again in the last two years, settling just above 5% by 2025. This pattern suggests volatility in profitability, with strong performance in 2021 not maintained in the subsequent years.

Return on Assets (ROA, Reported and Adjusted)

The reported and adjusted ROA closely follow the same trend as net profit margins, indicating consistency between raw financial outcomes and adjusted performance metrics. Starting from about 3.16% in 2020, there was a significant increase to approximately 13.4% in 2021. The figure remained relatively high through 2023, with the peak ROA recorded around 14% in 2023. However, from 2024 onwards, a decline is evident, with ROA dropping to around 5.8% by 2025. This decline may reflect changes in asset utilization efficiency or shifts in operational effectiveness.

Return on Equity (ROE, Reported and Adjusted)

Data for both reported and adjusted ROE is not available, limiting the ability to assess how shareholder equity returns have evolved over the periods analyzed.

In summary, the company experienced a strong uplift in profitability and asset efficiency starting in 2021, but these gains were not sustained through the last two observed years. Both net profits and returns on assets declined significantly after peaking, indicating challenges that impacted overall financial performance. The missing ROE data precludes a full evaluation of equity returns and their trends.

The financial analysis of the company over the observed periods reveals several notable trends in net earnings and profit margins. Both reported and adjusted net earnings attributable to the company show significant fluctuations with a peak during the period ending October 3, 2021, followed by a subsequent decline.

Reported and Adjusted Net Earnings

Reported net earnings increased sharply from approximately 928 million US dollars in 2020 to about 4.2 billion US dollars in 2021. After this peak, net earnings decreased to around 3.28 billion US dollars in 2022, rose again slightly to approximately 4.12 billion US dollars in 2023, then declined to 3.76 billion US dollars in 2024, and dropped significantly to about 1.86 billion US dollars in 2025.

The adjusted net earnings follow a very similar pattern, indicating that adjustments made did not drastically alter the overall trend. The adjusted figures closely mirror the reported figures, with a peak in 2021, followed by a decline and volatility in the subsequent years.

Reported and Adjusted Net Profit Margins

The net profit margins demonstrate consistent trends aligned with the earnings data. Reported net profit margin rose sharply from 3.95% in 2020 to 14.45% in 2021, reflecting improved profitability. It then declined to 10.18% in 2022, rebounded to 11.46% in 2023, decreased to 10.40% in 2024, and saw a sharp decrease to 4.99% in 2025.

The adjusted net profit margin figures are nearly identical to the reported ones, suggesting that adjustments had minimal impact on profitability metrics. This similarity underscores the reliability of the reported margins in reflecting operational profitability.

Overall, the data indicates a period of strong financial performance in 2021, followed by increased volatility and a downward trend in both net earnings and profit margins in the subsequent years. The significant drop observed in 2025 suggests challenges impacting profitability and net earnings, warranting further investigation into underlying operational or market factors.

The financial data for the company over the analyzed periods presents a notable trend in net earnings, both reported and adjusted. There is a significant increase in net earnings from the earliest period to the second, followed by a fluctuating decline through subsequent periods.

Reported Net Earnings

The reported net earnings attributable to the company rose sharply from 928,300 thousand US dollars in the first period to a peak of 4,199,300 thousand US dollars in the second period. Subsequently, the net earnings show a downward trend, decreasing to 3,281,600 thousand in the third period, then increasing again to 4,124,500 thousand in the fourth period. This was followed by another decline to 3,760,900 thousand and a substantial drop to 1,856,400 thousand in the last period available.

Adjusted Net Earnings

The adjusted net earnings exhibit a pattern very similar to the reported net earnings. Starting at 934,800 thousand US dollars, a peak was observed at 4,196,600 thousand in the second period. Following this, a decline to 3,264,400 thousand occurred in the third period, then an increase to 4,127,000 thousand, before dropping to 3,770,000 thousand and further falling steeply to 1,858,300 thousand in the final period. The differences between reported and adjusted earnings are minimal throughout the timeline, indicating consistent adjustments in reporting without large discrepancies.

ROE Metrics

No data was provided for reported or adjusted Return on Equity (ROE) for any of the periods reviewed. Consequently, no analysis or trends concerning profitability efficiency based on shareholder equity can be derived.

In conclusion, the net earnings data indicates volatility with a peak followed by a downward trajectory in both reported and adjusted figures. The similarity between reported and adjusted earnings suggests stable accounting practices with minor adjustments. The absence of ROE data limits the ability to assess returns on shareholders' investments over the periods in question.

The analysis of the financial performance over the reported periods reveals notable trends in both net earnings and return on assets (ROA) metrics. The reported net earnings attributable to the company demonstrate significant fluctuations, with a substantial increase observed in the period ending October 3, 2021, compared to September 27, 2020. Earnings peaked during this period before declining over subsequent years, reaching a notably lower level by the period ending September 28, 2025.

Adjusted net earnings, which account for investment and other adjustments, closely follow the pattern of reported earnings but show slightly smoother transitions and marginally different values. Both reported and adjusted figures indicate a peak in the 2021 period, followed by a decline through 2025. This pattern suggests external or one-time factors may have influenced earnings positively in 2021 but that profitability faced pressures or normalization afterward.

Return on assets (ROA), both reported and adjusted, mirrors the earnings trend with a marked increase from 2020 to 2021, indicating enhanced efficiency or profitability in asset utilization during this time. ROA reached its highest values around 2023 before tapering off substantially through 2025. The alignment between reported and adjusted ROA values implies consistency between the two measurement approaches, with only minor variances.

Net Earnings Trends

Reported and adjusted net earnings both experienced a sharp rise from 2020 to 2021, with earnings over four times higher in 2021 compared to 2020. Thereafter, a decline ensued, reducing earnings significantly by 2025.

Despite some recovery between 2022 and 2023, net earnings could not sustain the 2021 peak levels, signaling possible challenges in maintaining high profitability.

Return on Assets (ROA) Trends

ROA percentages increased markedly from approximately 3.2% in 2020 to over 13% in 2021, reflecting improved asset efficiency or profitability during this period.

Following this peak, ROA remained elevated through 2023 but fell significantly to below 6% by 2025, indicating a reduction in returns generated from assets.

Comparison of Reported vs. Adjusted Data

The close alignment between reported and adjusted metrics for both net earnings and ROA suggests the adjustments had minimal impact on the overall financial performance trends.

This consistency provides confidence that the observed earnings and profitability trends are reflective of underlying operational realities, not accounting irregularities.

In summary, the company demonstrated strong profitability growth in the early periods analyzed, with peak performance occurring around 2021. However, subsequent years exhibited declining earnings and reduced asset profitability, indicating challenges in sustaining higher profit margins or asset efficiency. The alignment of reported and adjusted data reinforces the reliability of these observations.