Financial Analysis: Starbucks Financial Statement Review

1114 Words5 Pages
Financial Statement Review
The Starbucks is the corporation selected for the financial statement review. The first Starbucks opened in 1971, back then, the company was just a single store in Seattle’s historic Pike Place Market. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. From the foundation, Starbucks set out to be a different kind of company.
Equivalent sales for the quarter rose 2% in the Americas region, which generally consist of U.S. locations also accounts for about 70% of overall company sales. That follows 3% growth in fiscal 2017, the worst performance in at least five years and a sharp contrast to sales growth of 6% to 7%
…show more content…
So far at 15 sites in Oregon and Southwest Washington, Starbucks coffee is brewed and served by union workers members of United Food and Commercial Workers (UFCW) Local 555. The reason that Starbucks, which strived to keep out unions at its own stores all over the world, now has franchise arrangements with employers such as Fred Meyer and Safeway.
There, union represented workers operate in-store Starbucks coffee kiosks. Though they wear Starbucks trademark green aprons and go through a similar training program, they’re employees of the grocery chains. Under the union agreements that apply in Local 555’s jurisdiction, management is supposed to remain neutral when union organizers campaign for new members. Local 555 has been recruiting deli, bakery and coffee shop workers to unionize, with some success. Coffee shop workers who join the union work under Schedule B of the contract, covering non-grocery workers, in which wages start at $7.10 an hour and rise to $11.75 after three years.

Total Value of
…show more content…
“The total number of coffee shops in the US is forecast to grow by just 2.17 percent this year, the slowest growth rate seen in the last six years” (Mintel study). The Company has been fast expanding in sales of its own bottled drinks and other coffee assortment at supermarkets and other locations. the company continues to find growing through other beverages, such as tea, beer and wine. Starbucks has as well continued to emphasis on its café presence through a widespread variety of food options, stylish restaurant remodeling, a revamped rewards program partnership with Chase and Visa, launching its first co-branded reward credit card to allow consumers to earn Starbucks reward points when they shop elsewhere. “Americans” increasingly on-the-go lifestyle is leading to a surge in demand for ready-to-drink beverages. (Starbucks President and CEO Kevin Johnson) The company is making a major push into China, reportedly opening a new location every 15 hour. Starbucks is a solid company and an internationally known brand with great business

More about Financial Analysis: Starbucks Financial Statement Review

Open Document