General presentation of Starbucks
A good knowledge of the Starbucks company is of course important if you want to trade or buy this stock. An experienced investor knows that the activities and segments in which a company operates, as well as the distribution of its turnover, will have a direct effect on its share price. For this reason, we are now providing a detailed overview of Starbucks and its revenue sources.
The Starbucks Corporation is an American company listed on the NYSE Main Market, which operates in the restaurant business. More specifically, the company specialises in owning and operating coffee shops. In addition to this core business, the Starbucks Group also has a coffee roasting business.
To better understand the company's activities, they can be divided into different divisions according to the share of turnover they generate, as follows:
- The operation of cafeterias currently accounts for the majority of the group's income, with 81.5% of turnover. This includes the ownership of a network of over 16,637 cafeterias under various brands including Starbucks, Teavana, Seattle's Best Coffee and Evolution Fresh.
- The sale of licences represents 9.9% of the company's turnover with 16,023 licensed cafeterias.
- The remaining 8.6% of turnover comes from the sale of coffee, beverages and food products to businesses, hotels, hospitals, airlines and others.
It is also important to take into account the geographical distribution of Starbucks' turnover, which is 71.8% in the USA, 11% in China and 17.2% in the rest of the world.