Starbucks 2005 Annual Report Download - page 29

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United States
The Company's United States operations (""United States'') represent 84% of Company-operated retail
revenues, 81% of total specialty revenues and 84% of total net revenues. United States operations sells coffee
and other beverages, whole bean coffees, complementary food, coffee brewing equipment and merchandise
primarily through Company-operated retail stores. Specialty Operations within the United States include
licensed retail stores and other licensing operations, foodservice accounts and other initiatives related to the
Company's core business.
United States total net revenues increased 19% to $5.3 billion for the fiscal year ended 2005, compared to
$4.5 billion for the 53-week period of fiscal 2004. Excluding the impact of the extra week in fiscal 2004,
United States total net revenues increased 21%.
United States Company-operated retail revenues increased 19% to $4.5 billion for the fiscal year ended 2005,
compared to $3.8 billion for the 53-week period of fiscal 2004. Excluding the impact of the extra week in fiscal
2004, United States Company-operated retail revenues increased 22%, primarily due to the opening of 574
new Company-operated retail stores in the last 12 months and comparable store sales growth of 9% for the
52-week period of fiscal 2005. The increase in comparable store sales was due to a 5% increase in the average
value per transaction, including 3% attributable to a beverage price increase in October 2004, and a 4%
increase in the number of customer transactions. Management believes increased customer traffic continues to
be driven by new product innovation, continued popularity of core products, a high level of customer
satisfaction and improved speed of service through enhanced technology, training and execution at retail
stores.
Total United States specialty revenues increased 15% to $795 million for the fiscal year ended 2005, compared
to $690 million in the 53-week period of fiscal 2004. Excluding the impact of the extra week in fiscal 2004,
United States specialty revenues increased 18%. United States licensing revenues increased 18% to $515 mil-
lion, compared to $437 million for the 53-week period of fiscal 2004. Excluding the impact of the extra week
in fiscal 2004, United States licensing revenues increased 20%, primarily due to increased product sales and
royalty revenues as a result of opening 596 new licensed retail stores in the last 12 months. Foodservice and
other revenues increased 10% to $280 million from $254 million for the 53-week period of fiscal 2004.
Excluding the impact of the extra week in fiscal 2004, United States foodservice and other revenues increased
13%, primarily due to growth in new and existing foodservice accounts, as well as growth in the emerging
entertainment business.
United States operating income increased by 24% to $946 million for the fiscal year ended 2005, from
$763 million for the fiscal year ended 2004. Operating margin increased to 17.7% of related revenues from
17.0% in the 53-week period of fiscal 2004. The increase was primarily due to leverage from strong revenue
growth, partially offset by higher retail store operating expenses primarily due to higher payroll-related
expenditures to facilitate ongoing retail store revenue growth.
International
The Company's international operations (""International'') represent the remaining 16% of Company-operated
retail revenues, 19% of total specialty revenues and 16% of total net revenues. International operations sells
coffee and other beverages, whole bean coffees, complementary food, coffee brewing equipment and
merchandise through Company-operated retail stores in the United Kingdom, Canada, Thailand, Australia,
Germany, Singapore, China, Chile and Ireland. Specialty Operations in International primarily include retail
store licensing operations in more than 25 other countries and foodservice accounts in Canada and the United
Kingdom. Certain of the Company's International operations are in various early stages of development that
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