SBUX2008ARv5

SBUX2008ARv5 - Starbucks Corporation Fiscal 2008 Annual...

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Starbucks Corporation Fiscal 2008 Annual Report
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$564 $494 $389 $265 Net Earnings (IN MILLIONS) & Return on Equity (PERCENTAGES) 14% $673 $315* Fiscal 2008 Financial Highlights Stores Open at Fiscal Year End (COMPANY-OPERATED AND LICENSED STORES) International United States 2003 2004 2005 2006 2007 $7.8 $6.4 $5.3 $4.1 24% 30% 20% 22% Net Revenues (IN BILLIONS) & Net Revenue Growth (PERCENTAGES) from Previous Year Components of 2008 Revenue Retail Licensing Foodservice & Other 84% 12% 4% United States International Global Consumer Products Group 76% 4% $894 $781 $606 $421 Operating Income (IN MILLIONS) & Operating Margin (PERCENTAGES) Comparable Store Sales (COMPANY-OPERATED STORES OPEN 13 MONTHS OR LONGER) 2008 Revenue Breakdown 8% 10% 7% 10.3% 11.5% 12.3% 11.5% 17% 25% 15,011 2008 $9.4 21% $1,054 5% 11.2% 7,225 8,569 10,241 12,440 8% 16,680 $10.4 10% $504* 4.9% – 3% 13% *Includes $267 million in pretax restructuring charges 29%
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Dear Shareholders, When we brought 10,000 partners together in New Orleans last October, Starbucks was at a crossroads. We had just completed a very difF cult F scal 2008, and after 16 years of continuous growth as a public company, we were for the F rst time talking about slowing growth, store closures and cost reductions. Consumer conF dence was approaching all-time lows, and both Wall Street and Main Street were reeling. In the face of these challenges, we made what many believed to be a controversial decision to invest in our people. ±or me, the decision was obvious. The core of our brand and of our success for more than three decades has been our partners. Our future growth depends on them, and on staying true to the values that made Starbucks the world-class brand it is today. At our Leadership Conference, we asked our partners to make a commitment to doing business in a new way. (What you see on the cover of this report is the Commitment Wall—which 10,000 partners from all over North America signed.) We asked them to operate their stores as if they were their own businesses, to deliver an experience that would engage our customers and to get involved with their communities as never before. We also introduced them to new tools and technology we knew they needed to meet these objectives. Most important, we reenergized our partners and sent them back to their stores to deliver results. Our store partners are now better equipped to operate in a different environment, with a renewed focus on what has deF ned Starbucks for all these years: our coffee, our customers, our stores and the communities we serve. Starbucks, too, is ready for the realities of today’s difF cult business environment, with a relentless focus on remaining true to who we are and on our responsibility to shareholders. While the year presented us—along with most other retailers—with signiF cant challenges, it also gave us the best evidence yet that the Starbucks brand remains relevant and powerful, and that our customers remain loyal and invested in our success. In spite of the economy, as I write this, Starbucks business fundamentals are strong: we have more than 160,000 partners who handle approximately 50 million transactions every week in our nearly 17,000 stores in 49 countries. We generate strong cash fl ow and have
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This note was uploaded on 01/31/2012 for the course ECON 101 taught by Professor Dumbass during the Spring '08 term at UCSB.

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SBUX2008ARv5 - Starbucks Corporation Fiscal 2008 Annual...

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