Constructing the Statement of Cash Flow: an Expanded Discussion
B
Constructing the Statement of Cash Flow: An Expanded Discussion
A P P E N D I X
B-1
STARBUCKS
PREMIUMS IN COFFEE
Starbucks Corporation is the leading retailer, roaster, and brander of specialty coffee in the world. It has more than 7,500 retail locations in North America, Latin America, Europe, the Middle East, and the Pacific Rim. Starbucks sells high quality coffee and the “Starbucks Experience.” It also produces and sells bottled Frappuccino® coffee drinks, Starbucks DoubleShot™ coffee drink, and a line of superpremium ice creams through its joint venture partnerships. Its Tazo Tea’s line of premium teas and Hear Music’s compact discs further add to its product offerings. Seattle’s Best Coffee® and Torrefazione Italia® Coffee brands also help Starbucks appeal to a broader consumer base. (Starbucks Website, 2005) Starbucks’ fiscal year 2003 resulted in $4.1 billion in total net revenues, a 24% year-over-year growth, and $267 million in net income, a 26% year-over-year growth. It also reported an 8% comparable store sales growth, which represents the 12th consecutive year of 5% or greater growth. This past year, Starbucks was recognized by Fortune magazine as number 8 on its list of America’s Most Admired Companies and number 34 in its ranking of 100 Best Companies to Work For. Starbucks was also listed among Business Ethics magazine’s 100 Best Corporate Citizens. Product lines of the major U.S. brewed coffee sellers are well defined. On the high end there is Starbucks, with 5,439 U.S. locations. It has made its expensive cappuccinos, frappuccinos, espressos, and lattes part of the common lexicon. On the other end, there is Dunkin’ Donuts, which has 4,100 stores. Dunkin’ Donuts is the largest seller of regular, nonflavored brewed coffee in the U.S. fast-food outlets. It has a 17% market share, compared with 15% for McDonald’s Corporation and 6% for Starbucks. The Wall Street Journal recently reported that “there’s a new brew-haha in Latte-land . . .
Constructing the Statement of Cash Flow: An Expanded Discussion
A P P E N D I X
B-1
STARBUCKS
PREMIUMS IN COFFEE
Starbucks Corporation is the leading retailer, roaster, and brander of specialty coffee in the world. It has more than 7,500 retail locations in North America, Latin America, Europe, the Middle East, and the Pacific Rim. Starbucks sells high quality coffee and the “Starbucks Experience.” It also produces and sells bottled Frappuccino® coffee drinks, Starbucks DoubleShot™ coffee drink, and a line of superpremium ice creams through its joint venture partnerships. Its Tazo Tea’s line of premium teas and Hear Music’s compact discs further add to its product offerings. Seattle’s Best Coffee® and Torrefazione Italia® Coffee brands also help Starbucks appeal to a broader consumer base. (Starbucks Website, 2005) Starbucks’ fiscal year 2003 resulted in $4.1 billion in total net revenues, a 24% year-over-year growth, and $267 million in net income, a 26% year-over-year growth. It also reported an 8% comparable store sales growth, which represents the 12th consecutive year of 5% or greater growth. This past year, Starbucks was recognized by Fortune magazine as number 8 on its list of America’s Most Admired Companies and number 34 in its ranking of 100 Best Companies to Work For. Starbucks was also listed among Business Ethics magazine’s 100 Best Corporate Citizens. Product lines of the major U.S. brewed coffee sellers are well defined. On the high end there is Starbucks, with 5,439 U.S. locations. It has made its expensive cappuccinos, frappuccinos, espressos, and lattes part of the common lexicon. On the other end, there is Dunkin’ Donuts, which has 4,100 stores. Dunkin’ Donuts is the largest seller of regular, nonflavored brewed coffee in the U.S. fast-food outlets. It has a 17% market share, compared with 15% for McDonald’s Corporation and 6% for Starbucks. The Wall Street Journal recently reported that “there’s a new brew-haha in Latte-land . . .