Analysis of Reportable Segments
Starbucks Corp. operates in 3 segments: North America; International; and Channel Development.
Segment Profit Margin
Starbucks Corp., profit margin by reportable segment
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| North America | 19.83% | 20.68% | 19.20% | 20.83% | 11.06% | 20.56% |
| International | 14.25% | 16.44% | 12.01% | 18.00% | 7.09% | 16.00% |
| Channel Development | 52.32% | 51.09% | 44.33% | 49.52% | 35.70% | 35.00% |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
- North America Segment Profit Margin
- The profit margin for the North America segment displayed a notable decline from 20.56% in 2019 to 11.06% in 2020, indicating a significant drop potentially due to external market pressures or operational challenges during that period. However, it rebounded sharply to 20.83% in 2021, reaching a performance level comparable to 2019. In the subsequent years, the margin experienced some fluctuations but remained relatively stable, with slight decreases to 19.2% in 2022 and 19.83% in 2024, and a rebound to 20.68% in 2023, suggesting a recovery and stabilization trend with marginal volatility.
- International Segment Profit Margin
- The International segment also exhibited a marked decrease from 16.00% in 2019 to a low of 7.09% in 2020, mirroring the trend seen in North America albeit at lower absolute margins. A significant recovery occurred in 2021 with the margin increasing to 18.00%, followed by a decline to 12.01% in 2022. The margin showed partial recovery again in 2023, reaching 16.44%, before experiencing another decline to 14.25% in 2024. Overall, this segment shows a more volatile profit margin pattern with a slower and less consistent recovery compared to the North America segment.
- Channel Development Segment Profit Margin
- The Channel Development segment maintained the highest profit margins throughout the entire period. Starting strong at 35.00% in 2019, the margin increased slightly to 35.70% in 2020. It then saw a significant surge to 49.52% in 2021, followed by a decrease to 44.33% in 2022. In the last two years, the profit margin rose again, reaching 51.09% in 2023 and further increasing to 52.32% in 2024. This consistent upward trend from 2020 onward indicates sustained and growing profitability in Channel Development, distinguishing it markedly from the other segments.
- Overall Insights
- Across the three segments, 2020 appears to have been a challenging year marked by sharp declines likely reflecting broader economic or industry-specific disruptions. Both North America and International segments demonstrated recovery in 2021 but experienced differing levels of volatility afterward. Channel Development, by contrast, showed strong growth and consistently high margins, suggesting a robust performance and possibly a strategic focus on this segment. The divergent margin trends highlight varying operational dynamics and profitability drivers in each segment.
Segment Profit Margin: North America
Starbucks Corp.; North America; segment profit margin calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | 5,355,300) | 5,495,700) | 4,486,500) | 4,259,300) | 1,801,700) | 3,728,100) |
| Total net revenues | 27,009,500) | 26,569,600) | 23,370,800) | 20,447,900) | 16,296,200) | 18,130,400) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 19.83% | 20.68% | 19.20% | 20.83% | 11.06% | 20.56% |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Total net revenues
= 100 × 5,355,300 ÷ 27,009,500 = 19.83%
The financial performance of the North America segment exhibits noticeable fluctuations over the analyzed periods. Total net revenues demonstrate a general upward trend after an initial decline. Following a drop from 18,130,400 thousand US dollars in September 2019 to 16,296,200 thousand US dollars in September 2020, revenues increased steadily reaching 27,009,500 thousand US dollars by September 2024. This indicates a recovery and growth trajectory beyond the 2020 dip, likely reflecting market or operational improvements.
Operating income follows a similar pattern, with a marked decrease from 3,728,100 thousand US dollars in 2019 to 1,801,700 thousand US dollars in 2020. However, it substantially rebounds over subsequent years, peaking at 5,495,700 thousand US dollars in 2023 before slightly declining to 5,355,300 thousand US dollars in 2024. Despite the minor setback in the final year, the overall trend shows enhanced profitability compared to the early periods.
The segment profit margin percentages correspond closely with these income fluctuations. After a significant drop from 20.56% in 2019 to 11.06% in 2020, the margin recovered to above 19% in subsequent years. It peaked at 20.83% in 2021, slightly decreased to 19.2% in 2022, returned to 20.68% in 2023, and settled at 19.83% in 2024. These variations suggest that the segment largely restored its operational efficiency and profitability levels following the 2020 downturn, though there is some variability year to year.
Overall, the segment experienced a notable dip in financial performance during 2020, a potential consequence of external challenges during that period. Subsequent years show a strong recovery in both revenues and operating income, aligned with sustained profit margin improvement. The slight margin and income reduction in the most recent year warrants monitoring to determine if it signals the beginning of a new trend or a temporary fluctuation.
Segment Profit Margin: International
Starbucks Corp.; International; segment profit margin calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | 1,045,700) | 1,230,900) | 833,200) | 1,245,700) | 370,600) | 1,011,300) |
| Total net revenues | 7,338,900) | 7,487,600) | 6,940,100) | 6,921,600) | 5,230,600) | 6,319,300) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 14.25% | 16.44% | 12.01% | 18.00% | 7.09% | 16.00% |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Total net revenues
= 100 × 1,045,700 ÷ 7,338,900 = 14.25%
- Operating Income (Loss)
- The operating income for the segment experienced considerable fluctuations over the years. It significantly declined from approximately $1.01 billion in 2019 to $370.6 million in 2020, which indicates a pronounced impact on profitability possibly due to adverse conditions affecting that fiscal year. Subsequently, operating income rebounded to $1.25 billion in 2021, marking a strong recovery. However, it declined again to approximately $833.2 million in 2022, followed by an increase to $1.23 billion in 2023, and then a decrease to about $1.05 billion in 2024. This pattern suggests volatility in operating income with intermittent recovery periods.
- Total Net Revenues
- Total net revenues showed a downward trend from $6.32 billion in 2019 to $5.23 billion in 2020, reflecting a decline likely linked to market or operational challenges in that year. Revenues then increased markedly to $6.92 billion in 2021 and remained relatively stable with slight increases and decreases through 2022 ($6.94 billion), 2023 ($7.49 billion), and 2024 ($7.34 billion). Overall, revenues rebounded after 2020 and generally maintained a higher level than the initial years, indicating growth and recovery in revenue generation capability.
- Segment Profit Margin
- The segment profit margin exhibited a decreasing trend in 2020, falling sharply from 16% in 2019 to just over 7%. This reduction in margin aligns with the observed decline in both operating income and total net revenues, suggesting profitability pressures during that year. From 2021 onward, the margin improved to 18%, followed by a decline to 12% in 2022. In the last two years reported, the margin increased to 16.44% in 2023 but then decreased slightly to 14.25% in 2024. The margin fluctuations indicate ongoing challenges in maintaining consistent profitability despite revenue recovery.
- Summary
- The segment's financial performance over the analyzed period is characterized by significant volatility, with a pronounced negative impact in 2020 reflected in all key financial metrics. Following 2020, there was a notable recovery in both revenues and operating income, although operating income did not stabilize and showed substantial variation. Profit margins mirrored these fluctuations, demonstrating a recovery from the low in 2020 but with variability indicating inconsistent cost control or pricing pressures. Overall, the segment shows resilience with revenue growth after 2020 but faces challenges in stabilizing profitability.
Segment Profit Margin: Channel Development
Starbucks Corp.; Channel Development; segment profit margin calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | 925,900) | 967,600) | 817,300) | 789,100) | 687,200) | 697,500) |
| Total net revenues | 1,769,800) | 1,893,800) | 1,843,600) | 1,593,600) | 1,925,000) | 1,992,600) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 52.32% | 51.09% | 44.33% | 49.52% | 35.70% | 35.00% |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Total net revenues
= 100 × 925,900 ÷ 1,769,800 = 52.32%
- Operating Income (Loss)
- The operating income exhibited a generally upward trend over the six-year period, starting at $697.5 million in 2019 and reaching a peak of $967.6 million in 2023. There was a slight decline in 2024 to $925.9 million, indicating some volatility after a period of growth. Overall, the operating income grew substantially, with notable increases from 2020 to 2021 and again from 2022 to 2023.
- Total Net Revenues
- Total net revenues showed a decline from 2019 to 2021, dropping from approximately $1.99 billion to about $1.59 billion. This reduction suggests possible challenges during this time frame. Subsequently, revenues partially recovered in 2022 and 2023, peaking at $1.89 billion, before declining again in 2024 to $1.77 billion. The fluctuations denote variability in sales or revenue-generating activities within the segment.
- Segment Profit Margin
- The segment profit margin experienced notable improvement throughout the period. Beginning at 35% in 2019, it reached nearly 50% in 2021 before slightly declining to 44.33% in 2022. From there, it increased further, reaching 51.09% in 2023 and continuing to improve to 52.32% in 2024. This upward trend reflects improving profitability efficiency relative to revenue over time.
- Overall Insights
- Despite fluctuations in total net revenues, operating income and profit margins generally improved, indicating enhanced operational efficiency or cost management within the segment. The divergence between declining revenues in some years and increasing profitability margins suggests effective control of expenses or strategic pricing adjustments. The slight decrease in operating income in 2024, despite the highest margin recorded, could imply revenue pressures impacting absolute profits. The data presents a segment focused on maintaining profitability amid revenue volatility.
Segment Return on Assets (Segment ROA)
Starbucks Corp., ROA by reportable segment
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| North America | 42.05% | 50.56% | 44.73% | 40.29% | 16.81% | 83.84% |
| International | 12.35% | 15.30% | 9.69% | 12.35% | 3.92% | 15.04% |
| Channel Development | 623.08% | 512.50% | 626.28% | 629.27% | 416.48% | 527.61% |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
The analysis of the annual reportable segment Return on Assets (ROA) percentages over the six-year period reveals distinct trends across the three segments: North America, International, and Channel Development.
- North America
- The North America segment exhibits significant fluctuations in ROA throughout the years. Starting at a high of 83.84% in 2019, the ROA sharply declined to 16.81% in 2020, likely reflecting challenges during that fiscal year. Following this decline, the segment's ROA experienced a recovery phase, improving to 40.29% in 2021 and further to 44.73% in 2022. The upward trend continued into 2023, reaching 50.56%, before decreasing again to 42.05% in 2024. Overall, despite volatility, North America maintains a relatively high ROA compared to other segments, but the variations suggest periods of operational or market stress followed by recovery efforts.
- International
- The International segment shows a lower and more stable ROA compared to North America, remaining within a narrow range. Starting at 15.04% in 2019, the ROA declined to 3.92% in 2020, indicating a notable contraction. Thereafter, a recovery was observed in 2021 when the ROA increased to 12.35%. In 2022, the ROA slightly decreased to 9.69%, but rebounded to 15.3% in 2023, matching its earlier high level. The ROA then decreased again to 12.35% in 2024. These variations suggest moderate cyclical influences on profitability, with some resilience but a consistently lower performance relative to North America.
- Channel Development
- The Channel Development segment stands out due to its exceptionally high ROA values, which are an order of magnitude greater than the other two segments. The data shows a very high ROA of 527.61% in 2019, followed by a decline to 416.48% in 2020. Subsequently, a strong upward trend occurred with ROA climbing to 629.27% in 2021 and slightly decreasing to 626.28% in 2022. In 2023, a reduction to 512.5% was observed before the ROA rebounded to 623.08% in 2024. Despite fluctuations, the Channel Development segment consistently demonstrates a high level of efficiency in asset utilization, indicating its critical contribution to overall company profitability and suggesting strong returns from channel-related investments or operations.
In summary, the ROA data exhibits marked variability, particularly in North America and Channel Development, reflecting sensitivity to market or operational conditions. The International segment shows more modest changes and consistently lower ROA, suggesting different dynamics or challenges. The extremely high ROA values in Channel Development imply highly effective asset use, but also potential volatility. Overall, the trends suggest a complex interplay of regional and operational factors affecting asset returns across segments.
Segment ROA: North America
Starbucks Corp.; North America; segment ROA calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | 5,355,300) | 5,495,700) | 4,486,500) | 4,259,300) | 1,801,700) | 3,728,100) |
| Total assets | 12,737,000) | 10,869,100) | 10,029,900) | 10,571,800) | 10,717,400) | 4,446,700) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 42.05% | 50.56% | 44.73% | 40.29% | 16.81% | 83.84% |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × 5,355,300 ÷ 12,737,000 = 42.05%
The analysis of the North America segment over the examined periods reveals several key trends regarding operating income, total assets, and segment return on assets (ROA).
- Operating Income (US$ in thousands)
- Operating income experienced a significant decline from 3,728,100 in 2019 to 1,801,700 in 2020, reflecting a substantial drop likely influenced by exogenous factors in that period. However, the subsequent years show a marked recovery and growth, with operating income increasing to 4,259,300 in 2021, climbing further to 4,486,500 in 2022, and peaking at 5,495,700 in 2023. There was a marginal decrease in 2024 to 5,355,300, though earnings remained substantially higher than pre-2020 levels.
- Total Assets (US$ in thousands)
- Total assets more than doubled from 4,446,700 in 2019 to 10,717,400 in 2020, indicating significant investments or asset acquisitions. The asset base remained relatively stable with minor fluctuations through 2021 and 2022, recorded at 10,571,800 and 10,029,900 respectively. In 2023, total assets increased again to 10,869,100 and continued to rise significantly to 12,737,000 in 2024, suggesting ongoing asset accumulation or capital expenditure.
- Segment Return on Assets (ROA, %)
- Segment ROA, which measures the efficiency of asset utilization in generating operating income, showed a steep decline from 83.84% in 2019 to 16.81% in 2020. This drop aligns with the period's lower operating income juxtaposed against a sharply increased asset base. From 2021 onwards, ROA improved progressively to 40.29% and continued upward to 44.73% in 2022 and 50.56% in 2023, indicating enhanced profitability relative to assets. However, there was a decrease to 42.05% in 2024, still reflecting a performance level higher than the early 2020s but below the peak in 2023.
Overall, the North America segment demonstrates resilience with a recovery in operating income following an initial contraction, strategic asset growth, and improved efficiency in asset utilization evident in the rising ROA after 2020. The slight declines seen in the most recent year for both operating income and ROA may warrant further monitoring to assess the persistence of these trends.
Segment ROA: International
Starbucks Corp.; International; segment ROA calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | 1,045,700) | 1,230,900) | 833,200) | 1,245,700) | 370,600) | 1,011,300) |
| Total assets | 8,464,500) | 8,045,300) | 8,602,800) | 10,083,300) | 9,449,700) | 6,724,600) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 12.35% | 15.30% | 9.69% | 12.35% | 3.92% | 15.04% |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × 1,045,700 ÷ 8,464,500 = 12.35%
The analyzed segment data exhibits a fluctuating pattern in key financial metrics over the six-year period under review.
- Operating Income (Loss)
- The operating income experienced a significant decline from 1,011,300 thousand USD in 2019 to 370,600 thousand USD in 2020, reflecting a major downturn. Subsequently, it recovered sharply in 2021, reaching 1,245,700 thousand USD. In 2022, a decrease was observed again to 833,200 thousand USD, followed by a rebound to 1,230,900 thousand USD in 2023. In the most recent period of 2024, operating income slightly declined to 1,045,700 thousand USD. This pattern indicates volatility with notable recovery phases following downturns.
- Total Assets
- Total assets showed a rising trend from 6,724,600 thousand USD in 2019 to a peak of 10,083,300 thousand USD in 2021. After this peak, total assets contracted steadily, declining to 8,602,800 thousand USD in 2022, further to 8,045,300 thousand USD in 2023, and slightly increasing to 8,464,500 thousand USD in 2024. This suggests an expansion phase followed by asset consolidation or divestiture.
- Segment Return on Assets (ROA)
- The segment ROA reflected a substantial dip from 15.04% in 2019 to 3.92% in 2020, coinciding with the sharp decline in operating income and the increase in assets. It then rebounded to 12.35% in 2021 before experiencing a moderate decline to 9.69% in 2022. The ratio improved significantly to 15.3% in 2023, reaching the highest level in the period reviewed, before decreasing again to 12.35% in 2024. These variations highlight fluctuating efficiency in asset utilization for generating operating income.
Overall, the data presents a pattern of volatility with sharp decreases in operating income and return on assets during 2020, followed by partial recoveries. Asset growth peaked in 2021, after which the asset base was reduced somewhat. The fluctuations in ROA suggest periods of both effective and less efficient asset deployment. The segment's operating performance appears sensitive to external or internal factors causing these cyclical changes.
Segment ROA: Channel Development
Starbucks Corp.; Channel Development; segment ROA calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | 925,900) | 967,600) | 817,300) | 789,100) | 687,200) | 697,500) |
| Total assets | 148,600) | 188,800) | 130,500) | 125,400) | 165,000) | 132,200) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 623.08% | 512.50% | 626.28% | 629.27% | 416.48% | 527.61% |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × 925,900 ÷ 148,600 = 623.08%
- Operating Income (Loss)
- The operating income exhibited fluctuations over the six-year period. It initially decreased slightly from 697,500 thousand US dollars in 2019 to 687,200 thousand in 2020. Subsequently, it showed a steady upward trend, rising to 789,100 thousand in 2021 and further to 817,300 thousand in 2022. The peak was reached in 2023 with 967,600 thousand US dollars, followed by a slight decline to 925,900 thousand in 2024. Overall, the segment demonstrated growth in operating income despite minor year-over-year fluctuations.
- Total Assets
- Total assets experienced volatility throughout the period. The asset base increased from 132,200 thousand US dollars in 2019 to a high of 165,000 thousand in 2020. It then sharply declined to 125,400 thousand in 2021 before stabilizing around 130,500 thousand in 2022. A substantial increase was recorded in 2023, rising to 188,800 thousand US dollars, after which total assets decreased again to 148,600 thousand in 2024. This indicates variability in asset levels, possibly reflecting strategic investments or disposals within the segment.
- Segment Return on Assets (ROA)
- The segment ROA exhibited significant variation but generally maintained a high level over the years. Starting at an extremely high 527.61% in 2019, it declined to its lowest point at 416.48% in 2020. Thereafter, ROA improved markedly to reach 629.27% in 2021 and remained consistently high with 626.28% in 2022. A drop to 512.5% occurred in 2023, followed by a rebound to 623.08% in 2024. These figures suggest that despite fluctuations in both operating income and asset levels, the segment maintained strong operational efficiency and profitability relative to its asset base.
Segment Asset Turnover
Starbucks Corp., asset turnover by reportable segment
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| North America | 2.12 | 2.44 | 2.33 | 1.93 | 1.52 | 4.08 |
| International | 0.87 | 0.93 | 0.81 | 0.69 | 0.55 | 0.94 |
| Channel Development | 11.91 | 10.03 | 14.13 | 12.71 | 11.67 | 15.07 |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
The analysis of the annual reportable segment asset turnover data reveals distinct trends across the three segments over the six reported periods from 2019 to 2024.
- North America Segment
- The asset turnover ratio in North America shows a notable decline from 4.08 in 2019 to 1.52 in 2020, indicating a significant reduction in the efficiency with which assets were utilized to generate revenue. This sharp drop may reflect disruptions or operational challenges during that period. Following 2020, there is a recovery trend with ratios increasing to 1.93 in 2021, 2.33 in 2022, and peaking at 2.44 in 2023. However, in 2024, the ratio decreases slightly to 2.12. Overall, despite fluctuations, the segment’s asset turnover remains materially lower than the 2019 level by the end of the period, suggesting persistent challenges in asset utilization efficiency compared to the pre-2019 environment.
- International Segment
- The International segment displays consistently lower asset turnover ratios compared to North America throughout the period. Starting at 0.94 in 2019, the ratio falls to a low of 0.55 in 2020, mirroring the trend seen in North America but less pronounced. Thereafter, a gradual improvement is observed, with increases to 0.69 in 2021, 0.81 in 2022, and reaching 0.93 by 2023, nearly returning to the 2019 level. The ratio slightly decreases to 0.87 in 2024. This pattern suggests recovery and improvement in asset utilization internationally, though the segment maintains a lower turnover rate compared to North America, implying differing operational dynamics or capital intensity.
- Channel Development Segment
- This segment consistently exhibits substantially higher asset turnover ratios compared to both North America and International segments, indicating a different operational or business model with higher asset efficiency. The ratio declines from 15.07 in 2019 to 11.67 in 2020, mirroring the downturns in other segments but maintaining a significantly higher absolute level. Subsequent years see fluctuating but relatively stable values with 12.71 in 2021, 14.13 in 2022, a notable drop to 10.03 in 2023, and a recovery to 11.91 in 2024. The volatility in this segment suggests variable asset utilization year-over-year but still underscores a generally higher efficiency relative to the other segments.
In summary, all segments experienced a marked decline in asset turnover in 2020, likely reflecting external disruptions affecting operational efficiency. North America and International segments show a recovering trend from 2021 onwards but have not entirely regained their 2019 levels by 2024. The Channel Development segment maintains the highest turnover ratios, reflecting a fundamentally different asset structure or business focus, though it also exhibits more volatility. These patterns highlight differences in asset use efficiency across the segments and evolving operational conditions over the analyzed timeframe.
Segment Asset Turnover: North America
Starbucks Corp.; North America; segment asset turnover calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total net revenues | 27,009,500) | 26,569,600) | 23,370,800) | 20,447,900) | 16,296,200) | 18,130,400) |
| Total assets | 12,737,000) | 10,869,100) | 10,029,900) | 10,571,800) | 10,717,400) | 4,446,700) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 2.12 | 2.44 | 2.33 | 1.93 | 1.52 | 4.08 |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Segment asset turnover = Total net revenues ÷ Total assets
= 27,009,500 ÷ 12,737,000 = 2.12
The segment data for the North America reportable area over the analyzed period reveals distinct trends in key financial metrics including total net revenues, total assets, and segment asset turnover.
- Total Net Revenues
- The total net revenues show a fluctuating but generally increasing trajectory from 2019 through 2024. There was an initial decline from approximately 18.13 billion USD in 2019 to 16.30 billion USD in 2020, likely influenced by adverse market conditions during that time. Subsequently, revenues rebounded robustly, increasing steadily each year to reach about 27.01 billion USD by 2024. This indicates a strong recovery and growth momentum over the latter four-year span.
- Total Assets
- Total assets exhibit a significant jump in 2020, increasing sharply from roughly 4.45 billion USD in 2019 to over 10.7 billion USD, which was then maintained at a relatively high level throughout the subsequent years. Minor fluctuations are observed but the asset base remains substantially larger than the initial 2019 figure, culminating at approximately 12.74 billion USD in 2024. This substantial increase in assets in 2020 may reflect acquisitions, investments, or reclassifications tied to strategic shifts or market conditions.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures revenue generated per unit of assets, declined sharply from 4.08 in 2019 to 1.52 in 2020 in line with the large increase in assets and drop in revenues that year. After 2020, the turnover ratio demonstrated gradual improvement, rising to 1.93 in 2021 and further to 2.44 by 2023, before a slight decrease to 2.12 in 2024. While the ratio did not return to the levels seen in 2019, the upward trend following 2020 suggests improved efficiency in generating revenue from the asset base, albeit at a lower intensity than the pre-2020 period.
Overall, the data indicates a period of disruption marked by reduced revenues and increased assets in 2020, followed by a strong recovery and growth in revenues alongside sustained higher asset levels. The asset turnover ratio's recovery reveals ongoing efforts to optimize returns on assets, though it has not fully reached the efficiency levels observed before the 2020 downturn.
Segment Asset Turnover: International
Starbucks Corp.; International; segment asset turnover calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total net revenues | 7,338,900) | 7,487,600) | 6,940,100) | 6,921,600) | 5,230,600) | 6,319,300) |
| Total assets | 8,464,500) | 8,045,300) | 8,602,800) | 10,083,300) | 9,449,700) | 6,724,600) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 0.87 | 0.93 | 0.81 | 0.69 | 0.55 | 0.94 |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Segment asset turnover = Total net revenues ÷ Total assets
= 7,338,900 ÷ 8,464,500 = 0.87
- Total net revenues
- The total net revenues exhibited a notable decline from 6,319,300 thousand US dollars in 2019 to 5,230,600 thousand US dollars in 2020, indicating a significant contraction during that period. Following this decline, revenues recovered substantially in 2021, increasing to 6,921,600 thousand US dollars. The revenues then remained relatively stable through 2022 and 2023, with values of 6,940,100 and 7,487,600 thousand US dollars respectively. However, in 2024, there was a slight decrease in total net revenues to 7,338,900 thousand US dollars.
- Total assets
- Total assets displayed a marked upward trend from 6,724,600 thousand US dollars in 2019 to a peak of 10,083,300 thousand US dollars in 2021, reflecting substantial asset growth. After this peak, total assets declined significantly over the next two years, reaching 8,602,800 thousand in 2022 and 8,045,300 thousand in 2023. There was a modest rebound in 2024, with total assets increasing to 8,464,500 thousand US dollars.
- Segment asset turnover
- The segment asset turnover ratio experienced a steep decline from 0.94 in 2019 to 0.55 in 2020, coinciding with the decrease in revenues and surge in assets during that year. Subsequently, this efficiency metric improved steadily over the following years, rising to 0.69 in 2021, 0.81 in 2022, and approaching the pre-decline level at 0.93 in 2023. In 2024, the ratio slightly decreased to 0.87, still signifying relatively strong asset utilization compared to the 2020 low point.
Segment Asset Turnover: Channel Development
Starbucks Corp.; Channel Development; segment asset turnover calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total net revenues | 1,769,800) | 1,893,800) | 1,843,600) | 1,593,600) | 1,925,000) | 1,992,600) |
| Total assets | 148,600) | 188,800) | 130,500) | 125,400) | 165,000) | 132,200) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 11.91 | 10.03 | 14.13 | 12.71 | 11.67 | 15.07 |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Segment asset turnover = Total net revenues ÷ Total assets
= 1,769,800 ÷ 148,600 = 11.91
- Total net revenues
- The total net revenues showed a declining trend from 2019 to 2021, decreasing from $1,992,600 thousand in 2019 to $1,593,600 thousand in 2021. Revenues then partially recovered in 2022 and 2023, reaching $1,843,600 thousand and $1,893,800 thousand respectively, before declining again in 2024 to $1,769,800 thousand. Overall, the revenues exhibited volatility with no consistent upward or downward trajectory over the six-year period.
- Total assets
- Total assets fluctuated substantially across the years. After starting at $132,200 thousand in 2019, assets increased sharply to $165,000 thousand in 2020, followed by a significant decline to $125,400 thousand in 2021. Assets then rose incrementally in 2022 to $130,500 thousand and saw a notable increase to $188,800 thousand in 2023, before decreasing again to $148,600 thousand in 2024. This pattern indicates variability in asset base management or investment activities within the segment.
- Segment asset turnover ratio
- The segment asset turnover ratio demonstrates the efficiency of asset use to generate revenue. It declined from 15.07 in 2019 to a low of 11.67 in 2020, improved slightly to 12.71 in 2021 and further increased to 14.13 in 2022. However, the ratio declined sharply to 10.03 in 2023 before recovering somewhat to 11.91 in 2024. These fluctuations suggest variable performance in asset utilization efficiency over the period, with the most effective asset use occurring in 2019 and 2022, and the least in 2023.
Total net revenues
Starbucks Corp., total net revenues by reportable segment
US$ in thousands
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| North America | 27,009,500) | 26,569,600) | 23,370,800) | 20,447,900) | 16,296,200) | 18,130,400) |
| International | 7,338,900) | 7,487,600) | 6,940,100) | 6,921,600) | 5,230,600) | 6,319,300) |
| Channel Development | 1,769,800) | 1,893,800) | 1,843,600) | 1,593,600) | 1,925,000) | 1,992,600) |
| Corporate and Other | 58,000) | 24,600) | 95,800) | 97,500) | 66,200) | 66,300) |
| Total | 36,176,200) | 35,975,600) | 32,250,300) | 29,060,600) | 23,518,000) | 26,508,600) |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
The data reveals distinct trends across the company's reportable segments over the six-year period.
- North America
- The North America segment exhibits a generally strong upward trajectory in net revenues. Beginning at approximately 18.13 billion US dollars in 2019, revenues dipped in 2020 to about 16.30 billion, likely reflecting external challenges during that year. From 2020 onwards, there is consistent growth each year, reaching approximately 27.01 billion by 2024. This growth suggests robust recovery and expansion within the North American market.
- International
- The International segment shows more variability. Revenues decline from approximately 6.32 billion in 2019 to 5.23 billion in 2020, mirroring the downturn observed in North America. This is followed by an increase to about 6.92 billion in 2021, with a slight stabilization through 2022 and 2023, peaking near 7.49 billion. However, in 2024, there is a marginal decrease to around 7.34 billion, indicating some softness or market challenges internationally during the latest year.
- Channel Development
- The Channel Development segment experiences a different pattern, with revenues starting at approximately 1.99 billion in 2019 and slightly decreasing over the next two years, dipping to around 1.59 billion by 2021. There is a moderate rebound in 2022 and 2023 to roughly 1.84 and 1.89 billion, respectively, but a decline is noted again in 2024 to about 1.77 billion. Overall, this segment shows less pronounced growth and some fluctuations, suggesting variable performance in related distribution or partnership channels.
- Corporate and Other
- The Corporate and Other category remains relatively small and erratic in comparison to operating segments. Revenues hover near 66 million in 2019 and 2020, rise to nearly 98 million in 2021, and slightly retreat to 96 million in 2022. A notable drop to approximately 25 million in 2023 is followed by a recovery to around 58 million in 2024, reflecting potential variability in non-operating or ancillary income streams.
- Total
- Total net revenues reflect the aggregate performance and trends seen in the individual segments. After a decline from about 26.51 billion in 2019 to 23.52 billion in 2020, total revenues show robust and steady growth through the subsequent years, reaching approximately 36.18 billion by 2024. This overall increase underscores the company's successful recovery from the 2020 downturn and its capacity to grow revenues consistently across most segments, particularly driven by North America.
Operating income (loss)
Starbucks Corp., operating income (loss) by reportable segment
US$ in thousands
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| North America | 5,355,300) | 5,495,700) | 4,486,500) | 4,259,300) | 1,801,700) | 3,728,100) |
| International | 1,045,700) | 1,230,900) | 833,200) | 1,245,700) | 370,600) | 1,011,300) |
| Channel Development | 925,900) | 967,600) | 817,300) | 789,100) | 687,200) | 697,500) |
| Corporate and Other | (1,918,100) | (1,823,400) | (1,519,200) | (1,422,000) | (1,297,800) | (1,359,000) |
| Total | 5,408,800) | 5,870,800) | 4,617,800) | 4,872,100) | 1,561,700) | 4,077,900) |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
The operating income data reveals several distinct trends across the reportable segments over the six-year period under review.
- North America
- The North America segment shows a fluctuating yet generally upward trajectory in operating income. Starting at approximately $3.7 billion in 2019, there is a significant decline to about $1.8 billion in 2020, likely reflecting adverse conditions during that period. Subsequently, the segment recovers sharply in 2021, reaching over $4.25 billion, and continues to increase through 2023, peaking near $5.5 billion before a slight decrease in 2024 to roughly $5.36 billion. This suggests a substantial rebound and sustained strength in this core market after the initial decline.
- International
- The International segment exhibits more volatility and smaller absolute values compared to North America. It drops markedly from approximately $1.01 billion in 2019 to $370.6 million in 2020, reflecting a sharper impact relative to size. A recovery to about $1.25 billion follows in 2021, but the segment declines again to approximately $833.2 million in 2022. It then increases to near $1.23 billion in 2023 before slightly falling to around $1.05 billion in 2024. Despite fluctuations, the segment demonstrates capacity for recovery but with less consistent growth momentum than North America.
- Channel Development
- This segment shows a steady upward trend across all years, starting from approximately $697.5 million in 2019 and climbing almost continuously to about $925.9 million in 2024. The growth rate is moderate but consistent, indicating solid performance and expansion in this business area, with no significant downturns during the period analyzed.
- Corporate and Other
- The Corporate and Other category consistently reports operating losses throughout the six years. The losses deepen gradually from roughly -$1.36 billion in 2019 to about -$1.92 billion in 2024. The negative trend indicates increasing overhead or other non-segment-related expenses impacting overall profitability from this category.
- Total
- Overall operating income reflects the combined effect of these segments. It declines dramatically from nearly $4.08 billion in 2019 to approximately $1.56 billion in 2020, consistent with the impact observed at the segment level. Following the drop, the total income surges to about $4.87 billion in 2021. There is a slight dip in 2022 to $4.62 billion before reaching a peak of nearly $5.87 billion in 2023. The total then decreases somewhat to roughly $5.41 billion in 2024. This pattern reveals resilience and recovery after an external shock in 2020, with the business moving toward strong profitability, albeit with some volatility in the most recent years.
Total assets
Starbucks Corp., total assets by reportable segment
US$ in thousands
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| North America | 12,737,000) | 10,869,100) | 10,029,900) | 10,571,800) | 10,717,400) | 4,446,700) |
| International | 8,464,500) | 8,045,300) | 8,602,800) | 10,083,300) | 9,449,700) | 6,724,600) |
| Channel Development | 148,600) | 188,800) | 130,500) | 125,400) | 165,000) | 132,200) |
| Corporate and Other | 9,989,200) | 10,342,300) | 9,215,200) | 10,612,100) | 9,042,400) | 7,916,100) |
| Total | 31,339,300) | 29,445,500) | 27,978,400) | 31,392,600) | 29,374,500) | 19,219,600) |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
The total assets across segments reveal distinct trends over the periods analyzed.
- North America
- There is a marked increase in total assets from 4,446,700 thousand USD in 2019 to 12,737,000 thousand USD in 2024. This growth is particularly substantial between 2019 and 2020, where assets more than doubled. After a slight decrease in 2022, the total assets again rose significantly in 2023 and 2024, reaching the highest value at the end of the period.
- International
- Contrasting with the North America segment, the international segment's assets first increased from 6,724,600 thousand USD in 2019 to 10,083,300 thousand USD in 2021. After this peak, total assets declined steadily to 8,465,000 thousand USD by 2024, showing a downward trend in the latter years of the period.
- Channel Development
- This segment displays considerable fluctuations with smaller total asset values relative to others. Starting at 132,200 thousand USD in 2019, it reached a high of 188,800 thousand USD in 2023 before falling back to 148,600 thousand USD in 2024. The trend is cyclic with no clear long-term growth or decline.
- Corporate and Other
- The Corporate and Other segment assets showed a generally increasing trend from 7,916,100 thousand USD in 2019, peaking at 10,612,100 thousand USD in 2021. After a decline in 2022, total assets recovered somewhat in 2023 but slightly decreased again by 2024. Overall, this segment demonstrates moderate volatility but maintains asset levels above 7.9 million USD.
- Total
- Total assets across all segments rose from 19,219,600 thousand USD in 2019 to a peak of 31,392,600 thousand USD in 2021. There was a significant decline to 27,978,400 thousand USD in 2022, followed by recovery in 2023 and 2024, nearly returning to the 2021 peak levels. This indicates overall asset growth with a dip during 2022 before rebound.