Starbucks's Return On Investment

1018 Words5 Pages
In 2015, Starbucks continued to be the “premier roaster, marketer and retailer of specialty coffee in the world” (“Form 10-K”, 2016). For the 2015 fiscal year, Starbucks continued to provide record financial results and record cash returns to shareholders. Starbuck’s consolidated net revenue grew 17% to $19.2 billion, from 2014. Their non-GAAP (adjusted-generally accepted accounting principles) operating income was up 19% to $3.7 billion, over their 2014 total. Their non-GAAP operating margin was at 19%, which increased 50 basis points from 2014. Starbucks earnings per share also grew to $1.58, a $.25 (18.8%) increase from 2014. These increases and growth made it possible to return $2.4 billion to shareholders. This money was returned in the form of dividends and share buybacks, up 50% from 2014 (“Starbucks Fiscal”, 2016). Starbuck’s return on investment (ROI) increased to 35.86%, a 5.07% change from 2014. Their return on assets increased to 23.77% from 18.57% in 2014, and their return on equity increased to 49.73%, a 7.32% increase from the prior year as well (“Starbucks Fiscal”, 2016). Although the competition for Starbucks remains at an all-time high, they continue to have 32.8% of the market share. Starbucks has 23,043 stores both, licensed and company operated, worldwide. Their nearest competitor, according to Statista.com (2016) is Dunkin’ Donuts, with 10,858 stores worldwide, retaining 16.1% of the market share (“Starbucks Fiscal”, 2016). Strategic
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