Starbucks Corp. (NASDAQ:SBUX)

The financial data reveals several notable trends over the analyzed periods in terms of revenue composition, cost structure, profitability, and operating efficiency.

Revenue Composition

The percentage of net revenues from company-operated stores remained relatively stable, fluctuating slightly around the low 80s, peaking at 84.67% in 2021 before settling near 82.28% in 2024. Licensed stores showed a gradual increase from 10.85% in 2019 to 12.45% in 2024, indicating a strategic emphasis on this segment. The 'Other' category decreased steadily from 7.88% to 5.27%, suggesting a diminished contribution or possible reclassification within revenue streams.

Cost of Revenues and Gross Profit

Product and distribution costs as a percentage of net revenues declined from -32.17% in 2019 to -30.91% in 2024, with an interspersed dip in 2021. Wages and benefits fluctuated, peaking at -26.07% in 2020 before improving to around -24.4% by 2024, reflecting potential cost control or labor productivity initiatives. Occupancy costs exhibited a downward trend from -9.10% to around -8.43%, pointing toward operational efficiencies or lease renegotiations. Overall, the cost of revenues increased notably in 2020 to -78.49%, possibly related to pandemic impacts, before stabilizing near -73% in later years. Gross profit experienced a sharp decline in 2020 to 21.51% but recovered subsequently, maintaining a more consistent level around 26-27%.

Operating Expenses and Income

Store operating expenses rose substantially in 2020 to -45.77%, mirroring the overall cost increase, but then decreased, sustaining around -42% through 2024. Other operating expenses showed a slight increase over time, while depreciation and amortization expenses decreased from -5.20% to approximately -4.18%, suggesting reduced capital expenditures or improved asset utilization. General and administrative expenses remained relatively stable around -7%. Restructuring and impairments peaked in 2020 at -1.19% but declined sharply afterward, almost disappearing by 2023. Income from equity investees decreased notably in 2022 and then steadied. The occurrence of a gain from the sale of assets at 0.25% in 2023 provided a minor one-time boost.

Profitability Metrics

Operating income showed significant volatility, dipping to 6.64% in 2020 but recovering to approximately 15% by 2024. Earnings before income taxes followed a similar pattern with a low of 4.95% in 2020, rising back to around 13.74%. Income tax expense fluctuated but remained at relatively low negative levels, contributing to consistent net earnings trends. Net earnings attributable to Starbucks experienced a pronounced contraction in 2020 down to 3.95%, a likely consequence of external disruptions, before rebounding to over 10% in subsequent years.

Financial Stability and Other Indicators

Interest expense increased from -1.25% to approximately -1.55%, indicating a slight rise in financing costs. Interest income and other net items remained modest but stable. Occasional net gains from divestitures contributed sporadically to financial results, notably in 2019 and 2021.

Overall, the data depicts challenges during the 2020 period, likely related to macroeconomic factors impacting operational and financial performance. Recovery trends are apparent post-2020, with improvements in gross profit margins, operating income, and net earnings. Cost management strategies appear to have been somewhat effective, as evidenced by reductions in several expense categories. The shifting revenue mix favors licensed stores' growth, which may impact future cost structures and profitability. Continued monitoring of operating expenses and interest costs will likely be crucial for sustaining financial health.