Starbucks Corp. (NASDAQ:SBUX)

The analysis of the quarterly financial data reveals multiple trends and patterns in the revenue composition, costs, expenses, and profitability over the observed periods.

Revenue Composition

The proportion of net revenues derived from company-operated stores remained the largest segment, fluctuating around 81% to 84% throughout the periods. Licensed stores contributed roughly between 7% and 13%, exhibiting a downward dip during mid-2020 but recovering thereafter. The 'Other' category showed relative stability, generally maintaining between 5% and 9% of net revenues, with a notable increase in early 2020.

Cost of Revenues and Gross Profit

Product and distribution costs as a percentage of net revenues experienced variability, with a marked increase in mid-2020 indicative of rising cost pressures, reaching peaks close to -35%. Store operating expenses presented significant volatility, especially in 2019 and 2020, including a sharp spike to over -60% around mid-2020, reflecting operational challenges, possibly from external disruptions. Consequently, the cost of revenues escalated markedly during 2020, peaking at nearly -95% in one quarter before easing toward prior levels.

Gross profit margins mirrored these cost fluctuations, declining steeply in mid-2020 to a low of under 5%, then rebounding gradually, stabilizing in the upper 20% range post-2020. This pattern indicates an acute impact on profitability during this period, followed by recovery.

Operating Expenses

Other operating expenses maintained a relatively low and stable ratio around -1% to -1.6%, with minor fluctuations. Depreciation and amortization expenses generally ranged from about -3.7% to -8.5%, seeing a notable spike in mid-2020 but trending downward afterward. General and administrative expenses remained within -5.9% to -7.6%, without extreme deviations but showed a slight upward trend in recent periods. Restructuring costs were generally minimal but spiked negatively during 2020 and 2025, suggesting occasional restructuring activities.

Operating Income and Profitability

Operating income as a percentage of net revenues showed strong earnings before 2020, typically ranging from 13% to 19%. However, a sharp decline occurred mid-2020 with a significant operating loss of around -17%, followed by a recovery phase, stabilizing in competitive single to mid-teen percentages through the subsequent years. Earnings before income taxes followed a similar pattern, with losses during the mid-2020 period but mostly positive returns before and after.

Income tax expenses fluctuated alongside profitability, occasionally turning into a tax benefit during loss periods, notably in mid-2020, reflecting tax accounting adjustments aligned with operating losses.

Net earnings attributable to the company similarly dropped dramatically into negative territory during mid-2020 but recovered to double-digit positive performance in the following periods, demonstrating resilience and improved operational conditions post-disruption.

Gains, Income from Equity, and Other Income

Income from equity investees exhibited modest positive contributions clustering between 0.5% and 1.8%, with no extreme volatility. Gains from sale of assets and net gains from divestitures appeared sporadically, contributing to transient boosts in profitability during select quarters, notably in early 2019 and later in 2021.

Interest income and other net income showed minor positive contributions generally below 0.6%, while interest expenses ranged from about -1.1% to -2.8%, with an upward trend in expense during the 2020 period, possibly due to increased debt or financing costs.

Overall, the financial data depicts a clear impact of an external adverse event around early to mid-2020, reflected in declining revenue contributions from licensing, increased costs, significant operating losses, and reduced net earnings. Recovery is apparent post-2020 with improving margins, cost management, and resumed profitability, although some expense categories indicate ongoing operational adjustments and restructuring efforts. The revenue mix remains dominated by company-operated stores, supporting stable revenue streams as the business navigates post-crisis phases.