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Financial Ratio Analysis: Starbucks Corporation

In: Business and Management

Submitted By adrianne1121
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Financial Ratio Analysis:
Starbucks Corporation

December 11, 2013

Financial Ratio Analysis: Starbucks Corporation Starbucks Corporation has created a crazed coffee culture around the globe. This paper will act as a financial and stock recommendation based of the financial ratio analysis. Starbucks opened its first location in Seattle’s Pike Place Market in 1971, selling quality ground beans over a small counter in an open-air market. Eleven years later, Howard Schultz joined Starbucks as a director of retail operations and marketing. After a trip to Italy to find new products, Schultz fell in love with the cafe environment he found there. His dream then began to bring that environment to the United States and the brand we know today began to take form. With the backing of local investors, Shultz acquired six Starbucks locations in 1987 (Starbucks) and began building his global empire. At the time of its initial public offering on the stock market in June 1992, Starbucks had grown to 140 outlets and had revenue of $73.5M. They opened that morning at $17 a share, and closed at $21.50. (Starbucks) By September 1992, the share price had risen 70% to over 100 times the earnings per share of the previous year. (Globe) After going public, the company took steps to grow the business, expanding the brand by negotiating partnerships with established companies. * Offering Starbucks coffee on United Airlines fights. * Licensing Stores to Barnes & Noble, Nordstrom and Sheraton Hotel * Offering WiFi with HP and T-Mobile in cafes. * Distributing whole bean and ground coffee to supermarkets. * Producing premium coffee ice cream with Dreyer’s. At the heart of the Starbucks experience today, just as it has been from the beginning, is Starbucks mission “to inspire and nurture the human spirit – one person, one cup, and one neighborhood...

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