Starbucks Corp. (NASDAQ:SBUX)

The financial data over the indicated periods reveals notable trends in profitability margins and returns for the company.

Gross Profit Margin

The gross profit margin shows a fluctuating pattern starting from around 28.25% at the end of 2019, then experiencing a marked decline through 2020, hitting a low of 20.94% by the first quarter of 2021. Subsequently, there is a recovery trend through 2021 and 2022, reaching approximately 27.85% by the fourth quarter of 2021. From 2022 onwards, the margin shows a gradual decline again, dropping to 23.68% by the final quarter reported in 2025. Overall, this margin indicates sensitivity to external conditions with partial recovery but a downward pressure in the most recent periods.

Operating Profit Margin

The operating profit margin follows a similar trend to gross margin with consistent values above 15% before 2020, followed by a sharp decrease to a low of 5.42% during mid-2020, which corresponds with difficult economic conditions. There is a significant rebound to near 16.92% by early 2022, signaling improved operational efficiency or revenue growth. However, from 2022 onward, the operating margin gradually declines to 10.81% by the end of 2025, suggesting rising operating costs or margin pressures.

Net Profit Margin

The net profit margin also reflects volatility, with values around 13-14% pre-2020, severely dropping to below 3% during mid-2020. This sharp decline is less pronounced than operating margin but still notable. Recovery is evident by late 2021, achieving levels similar to pre-pandemic periods (around 14%). Following this recovery phase, the margin demonstrates a downward drift, reaching 7.18% at the end of 2025, indicating lower net profitability possibly due to increased expenses, taxes, or other financial costs.

Return on Assets (ROA)

ROA shows a high level of variability, dropping sharply from 18.73% at the end of 2019 to a minimum near 2.22% in early 2021. A gradual improvement is observed afterward, peaking at 15.24% in mid-2022, indicating better asset utilization and profitability. From that peak, ROA declines steadily to 7.82% by the final reported quarter in 2025, suggesting reduced efficiency or profitability from asset investments in recent periods.

Return on Equity (ROE)

Data for ROE is missing for all periods, precluding analysis.

Overall, the company's profitability margins and returns demonstrate significant impacts likely related to external macroeconomic factors around 2020, with recovery phases thereafter. However, recent trends indicate a gradual erosion of profitability margins and asset returns, highlighting potential challenges in sustaining prior financial performance levels.

Gross Profit

The gross profit fluctuated significantly over the examined periods. Initial values were around 1,881,000 thousand USD in December 2018, followed by a decline in early 2020 to a low point of 200,300 thousand USD in June 2020, likely reflecting a significant disruption. Subsequent quarters showed a strong recovery with gross profit rising back above 2,000,000 thousand USD by mid to late 2021, peaking at 2,719,200 thousand USD in October 2023. However, in the most recent quarters ending in June 2025, the gross profit again declined to approximately 1,848,000 thousand USD before slightly increasing to 2,155,700 thousand USD by June 2025.

Net Revenues

Net revenues demonstrated a similar pattern to gross profit. Beginning at 6,632,700 thousand USD in December 2018, revenues decreased sharply in mid-2020 to a low near 4,222,100 thousand USD in June 2020. This was followed by a substantial recovery, with revenues rising steadily and peaking above 9,400,000 thousand USD between late 2023 and early 2024. The trend indicates resilience and growth after a period of downturn. Nevertheless, net revenues dropped again in the latest reported quarters, falling to 8,761,600 thousand USD in March 2025 before rising slightly to 9,456,000 thousand USD in June 2025.

Gross Profit Margin

The gross profit margin showed variability across the reporting periods. Margins were not reported in the earliest quarters but calculated values from December 2019 onwards reveal a decreasing trend during the downturn period of early 2020, dropping to as low as 20.94% in June 2020. Margins subsequently improved, rising to a peak of 28.87% in January 2022 and remaining relatively stable around 27% in the following quarters. From late 2023 to mid-2025, there is a gradual decline in gross profit margin, decreasing from 27.81% to 23.68%, indicating some pressure on profitability despite the recovery in revenue.

Overall Observations

The data indicates a pronounced impact on financial performance around early to mid-2020, consistent with broader market disruptions. Both gross profit and net revenues experienced significant decreases during this period with a notable recovery phase thereafter. The gross profit margin trend supports this interpretation, showing margin compression during the downturn and partial recovery subsequently. Although revenues reached new highs post-2020, recent decreases alongside declining gross margins suggest emerging challenges to sustaining profitability levels at previous peaks. These patterns highlight the importance of monitoring cost management and operational efficiency moving forward.

Operating Income (Loss)

The operating income exhibited fluctuation over the observed periods. It started at 1,015,700 thousand USD in late 2018, followed by several increases and declines. A notable drop occurred in March 2020, coinciding with a loss of 703,900 thousand USD in June 2020. Afterwards, the operating income generally demonstrated a recovery trend, reaching peaks above 1,700,000 thousand USD by late 2020 and 2021. However, post-2023, operating income showed variability and a declining tendency toward mid-2025, ending at 935,600 thousand USD.

Net Revenues

Net revenues followed a partially cyclical pattern with an overall upward trend until 2021, starting near 6,632,700 thousand USD at the end of 2018 and reaching over 9,400,000 thousand USD by late 2020 and early 2022. There was a marked decline in 2020 Q2 down to 4,222,100 thousand USD, implying significant operational challenges during that period. Revenues partially recovered in subsequent quarters, stabilizing around 9,000,000 thousand USD but with some declines observed in 2024 and partial recovery again in mid-2025.

Operating Profit Margin

The operating profit margin data begins in mid-2019 with percentages around 15-16%. It experienced a sharp decline in 2020, dropping as low as approximately 5-8% during the pandemic quarter. Post-2020, the margin improved steadily, fluctuating in the range of 14-17% through 2021 and 2022. In later years, the margin saw a gradual decrease, falling from around 16% in early 2023 to about 10.81% by mid-2025.

Summary of Trends

Overall, the data reflects the impact of external disruptions, likely related to global economic events, on the company's financial performance in early 2020, demonstrated by declines in operating income, net revenues, and profit margins. Recovery phases followed, with gradual improvement in profitability and revenues through 2021 and 2022. However, more recent periods indicate increased volatility and a downward trend in profitability margins and operating income, despite generally high net revenue levels. These patterns suggest a need for ongoing attention to cost management and operational efficiency amid evolving market conditions.

The financial data reveals several key trends in the quarterly performance over the observed periods.

Net Earnings (Loss) Attributable to Starbucks

Net earnings displayed significant volatility throughout the periods. Early data points show a generally positive trend with net earnings increasing to a peak by mid-2019. However, starting in early 2020, a sharp decline is evident, including a notable loss in the second quarter of 2020. Following this downturn, earnings recovered gradually, with several quarters showing strong rebound performances, notably from late 2020 through 2021. More recent quarters demonstrate fluctuations, but the overall earnings stayed positive, albeit with a decreasing trend in the final quarters.

Net Revenues

Net revenues followed a somewhat cyclical pattern, initially increasing gradually until late 2019. A steep decline occurred in early 2020 coinciding with the earliest impact of adverse conditions, reaching its lowest point in the second quarter of 2020. From that low, there was a steady recovery through 2021 and into early 2023, with revenues consistently rising and surpassing pre-decline levels. Subsequently, revenue levels showed some oscillation but generally maintained levels near the peaks from prior quarters, reflecting steady business performance.

Net Profit Margin

The net profit margin data, beginning from late 2019, demonstrated a marked decrease during the initial quarters of 2020, reaching the lowest margins concurrent with the loss period. From mid-2020 onwards, margins progressively improved, peaking around late 2021 with margins exceeding 14%. Following this peak, a gradual decline in profit margins is observable, trending downward through the most recent quarters, suggesting increased pressure on profitability despite relatively stable revenue figures.

Overall, the data indicates a strong adverse impact during early 2020 causing both revenue and earnings contractions along with compressed profit margins. The subsequent recovery phase was characterized by rising revenues and earnings, accompanied by an improved profitability profile. More recent quarters reveal some challenges in sustaining net earnings growth and profit margins, despite relatively stable revenue streams, hinting at potential cost pressures or shifts in business dynamics.

The net earnings attributable to the company demonstrate notable volatility across the quarters, reflecting various external and internal influences. Initial earnings in late 2018 and early 2019 show moderate figures, followed by a significant peak in the second quarter of 2019. A marked decline is observed in early 2020, corresponding to a period likely impacted by adverse economic conditions, including a substantial loss in the second quarter of 2020. Recovery commences from the third quarter of 2020 onwards, with earnings fluctuating yet generally trending upward, reaching another peak in the first quarter of 2021. Subsequent periods exhibit oscillations with a moderate upward bias, peaking again in late 2023 and early 2024, though with some declines evident in the most recent quarters.

Shareholders’ deficit presents a persistent negative balance throughout the entire period, indicating a continuous deficit in equity. The deficit deepens considerably during 2019 and peaks around early 2020, suggesting increased liabilities or reduced net assets during this timeframe. From mid-2020, a partial recovery in shareholders’ deficit occurs, with the deficit diminishing notably by late 2021. However, this improvement is short-lived, as the figure again trends downward throughout 2022, followed by a moderate recovery phase in 2023. Despite the fluctuations, the overall status remains a substantial negative equity position, signaling ongoing financial challenges related to equity structure or accumulated losses.

The absence of data on Return on Equity (ROE) restricts the ability to directly assess profitability relative to shareholder investment; however, the patterns in net earnings and shareholders’ deficit imply periods of both stress and recovery. The losses and fluctuating shareholders’ deficit suggest challenges in maintaining shareholder value consistently over time.

Net Earnings (Loss) Trend

Volatile quarterly figures with peaks in mid-2019 and early 2021; significant loss in mid-2020; general recovery post-2020 with fluctuations.

Shareholders’ Deficit Trend

Consistently negative, worsening sharply in 2019 and early 2020; partial recoveries noted later, but deficit remains large and problematic.

Profitability Insight

Fluctuating earnings alongside a sustained shareholders’ deficit hint at ongoing challenges to financial stability and shareholder value enhancement.

The data reveals a fluctuating pattern in net earnings attributable to the company over the analyzed periods. The net earnings reached a peak of approximately 1.37 billion US dollars in June 2019, followed by a notable decline in the succeeding quarters. A significant loss of around 678 million US dollars was recorded in June 2020, indicating an adverse financial event or impact during this period. Subsequent quarters show a steady recovery trend with positive earnings resuming and gradually increasing, reaching over 1.2 billion US dollars by July 2023. However, the last few periods indicate a decline again, with earnings reducing to around 384 million US dollars by June 2025 but showing a moderate rebound in the following quarters.

Total assets demonstrate a general upward trend from the end of 2018 through to the end of the timeline. There was an initial drop from about 19.98 billion US dollars in December 2018 to 17.64 billion US dollars in March 2019, after which total assets generally increased with some oscillations. The value surpassed 31 billion US dollars by the end of 2024 and further rose, peaking near 33.65 billion US dollars by June 2025. This trend reflects growth in asset base despite fluctuations in earnings during the same periods.

Return on Assets (ROA) data, although missing in the initial periods, starts at 18.73% in December 2019 and exhibits a declining trend through mid-2020, reaching a low of 2.22%. Thereafter, ROA improves markedly, peaking again at over 15% in early 2022. Following this, it demonstrates a gradual downward trend, declining to below 8% by June 2025. This pattern indicates variations in the efficiency of asset utilization to generate earnings, with a significant dip corresponding to the period with losses and subsequent recovery periods followed by moderation in returns.

Net Earnings

Characterized by volatility with a significant loss in mid-2020, strong recovery through 2021-2023, and a recent decline in 2024-2025.

Total Assets

Show a consistent growth trend over the period despite initial minor declines, doubling the asset base since 2018.

Return on Assets (ROA)

Exhibits considerable variation, dipping notably in 2020 during loss periods, recovering strongly until 2022, then declining gradually through 2025, indicating fluctuations in operational efficiency and profitability relative to asset base.