Starbucks 2005 Annual Report Download - page 25

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RESULTS OF OPERATIONS Ì FISCAL 2005 COMPARED TO FISCAL 2004
The following table presents the consolidated statement of earnings as well as the percentage relationship to
total net revenues, unless otherwise indicated, of items included in the Company's consolidated statements of
earnings (amounts in thousands):
Oct 2, 2005 % of Oct 3, 2004 % of Sept 28, 2003 % of
Fiscal Year Ended (52 Wks) Revenues (53 Wks) Revenues (52 Wks) Revenues
STATEMENTS OF EARNINGS
DATA
Net revenues:
Company-operated retailÏÏÏÏÏÏÏÏ $5,391,927 84.7% $4,457,378 84.2% $3,449,624 84.6%
Specialty:
Licensing ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 673,015 10.5 565,798 10.7 409,551 10.1
Foodservice and other ÏÏÏÏÏÏÏÏ 304,358 4.8 271,071 5.1 216,347 5.3
Total specialty ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 977,373 15.3 836,869 15.8 625,898 15.4
Total net revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,369,300 100.0 5,294,247 100.0 4,075,522 100.0
Cost of sales including occupancy
costs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,605,212 40.9 2,191,440 41.4 1,681,434 41.3
Store operating expensesÏÏÏÏÏÏÏÏÏÏ 2,165,911 40.2(1) 1,790,168 40.2(1) 1,379,574 40.0(1)
Other operating expenses ÏÏÏÏÏÏÏÏÏ 197,024 20.2(2) 171,648 20.5(2) 141,346 22.6(2)
Depreciation and amortization
expenses ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 340,169 5.3 289,182 5.5 244,671 6.0
General and administrative expenses 357,114 5.6 304,293 5.7 244,550 6.0
Subtotal operating expenses ÏÏÏÏÏ 5,665,430 88.9 4,746,731 89.7 3,691,575 90.6
Income from equity investeesÏÏÏÏÏÏ 76,745 1.2 59,071 1.1 36,903 0.9
Operating income ÏÏÏÏÏÏÏÏÏÏÏÏÏ 780,615 12.3 606,587 11.5 420,850 10.3
Interest and other income, net ÏÏÏÏÏ 15,829 0.2 14,140 0.2 11,622 0.3
Earnings before income taxesÏÏÏÏÏÏ 796,444 12.5 620,727 11.7 432,472 10.6
Income taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 301,977 4.7 231,754 4.4 167,117 4.1
Net earningsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 494,467 7.8% $ 388,973 7.3% $ 265,355 6.5%
(1) Shown as a percentage of related Company-operated retail revenues.
(2) Shown as a percentage of related total specialty revenues.
Consolidated Results of Operations
Net revenues for the fiscal year ended 2005 increased 20% to $6.4 billion from $5.3 billion for the 53-week
period of fiscal 2004, driven by increases in both Company-operated retail revenues and specialty operations.
Net revenues increased 23% when calculated on a comparative 52-week basis for both fiscal 2005 and 2004.
Net revenues are expected to grow approximately 20% in fiscal 2006 compared to fiscal 2005.
During the fiscal year ended 2005, Starbucks derived 85% of total net revenues from its Company-operated
retail stores. Company-operated retail revenues increased 21% to $5.4 billion for the fiscal year ended 2005,
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