Starbucks 2005 Annual Report Download - page 34

United States
United States total net revenues increased 29% to $4.5 billion for the fiscal year ended 2004, compared to
$3.5 billion for the 52-week period of fiscal 2003. Excluding the impact of the extra sales week in fiscal 2004,
United States total net revenues increased 27% to $4.4 billion. United States Company-operated retail
revenues increased 28% to $3.8 billion for the fiscal year ended 2004, compared to $3.0 billion for the 52-week
period of fiscal 2003, primarily due to the opening of 514 new Company-operated retail stores in the last
12 months and comparable store sales growth of 11%. The increase in comparable store sales was due to a 10%
increase in the number of customer transactions and a 1% increase in the average value per transaction.
Excluding the impact of the extra sales week in fiscal 2004, United States Company-operated retail revenues
increased 26% to $3.7 billion.
Total United States specialty revenues increased 36% to $690 million for the fiscal year ended 2004, compared
to $507 million in the 52-week period of fiscal 2003. Excluding the impact of the extra sales week in fiscal
2004, United States specialty revenues increased 33% to $676 million. United States licensing revenues
increased 45% to $437 million, compared to $301 million for the 52-week period of fiscal 2003. The increase
was primarily due to volume-driven growth in the grocery and warehouse club businesses as a result of
expanded agreements with Kraft Foods Inc., which included the addition of six new Starbucks coffees along
with a selection of Tazo» teas. In addition, product sales and royalty revenues increased as a result of opening
417 new licensed retail stores in the last 12 months. Foodservice and other revenues increased 23% to
$254 million from $206 million in fiscal 2003, due to both the addition of new and existing Starbucks and
Seattle Coffee Company foodservice accounts.
United States operating income increased by 26% to $763 million for the fiscal year ended 2004, from
$604 million for the fiscal year ended 2003. Operating margin decreased to 17.0% of related revenues from
17.4% in the 52-week period of fiscal 2003, primarily due to higher dairy and green coffee commodity costs, as
well as higher payroll-related expenditures to support the Company's ongoing retail store growth. These
increases were partially offset by leverage gained on fixed occupancy costs distributed over an expanded
revenue base.
International
International total net revenues increased 33% to $803 million for the fiscal year ended 2004, compared to
$603 million for the 52-week period of fiscal 2003. Excluding the impact of the extra sales week in fiscal 2004,
International total net revenues increased 31%. International Company-operated retail revenues increased 36%
to $657 million for the fiscal year ended 2004, compared to $484 million for the 52-week period of fiscal 2003.
The increase was primarily due to the opening of 120 new Company-operated retail stores in the last
12 months, the weakening of the U.S. dollar against both the British pound sterling and Canadian dollar, and
comparable store sales growth of 6%. The increase in comparable store sales resulted from a 5% increase in the
number of customer transactions and a 1% increase in the average value per transaction. Excluding the impact
of the extra sales week in fiscal 2004, International Company-operated retail revenues increased 33% to
$644 million.
Total International specialty revenues increased 23% to $146 million for the fiscal year ended 2004, compared
to $119 million for the 52-week period of fiscal 2003. Excluding the impact of the extra sales week in fiscal
2004, International specialty revenues increased 21% to $144 million. The increase was primarily due to higher
product sales and royalty revenues from opening 293 new licensed retail stores in the last 12 months, partially
offset by proportionate eliminations of sales to equity investees in which the Company increased its ownership
interest in late fiscal 2003.
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