Starbucks 2006 Annual Report Download - page 34

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United States
United States total net revenues increased 20% to $5.1 billion for the fiscal year ended 2005, compared to $4.3 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 22%. 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 580 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.
Total United States specialty revenues increased 20% to $558 million for the fiscal year ended 2005, compared to
$465 million in the 53-week period of fiscal 2004. Excluding the impact of the extra week in fiscal 2004, United States
specialty revenues increased 23%. United States licensing revenues increased 32% to $278 million, compared to
$211 million for the 53-week period of fiscal 2004. Excluding the impact of the extra week in fiscal 2004, United States
licensing revenues increased 35%, 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 23% to $819 million for the fiscal year ended 2005, from $664 million for
the fiscal year ended 2004. Operating margin increased to 16.1% of related revenues from 15.6% in the 53-week period
of fiscal 2004. The increase was primarily due to leverage from strong revenue growth.
International
International total net revenues increased 29% to $1.0 billion for the fiscal year ended 2005, compared to $794 million
for the 53-week period of fiscal 2004. Excluding the impact of the extra week in fiscal 2004, International total net
revenues increased 31%. International Company-operated retail revenues increased 30% to $852 million for the fiscal
year ended 2005, compared to $657 million for the 53-week period of fiscal 2004. Excluding the impact of the extra week
in fiscal 2004, International Company-operated revenues increased 32%, primarily due to the opening of 166 new
Company-operated retail stores in the last 12 months, comparable store sales growth of 6% for the 52-week period of
fiscal 2005, and the weakening of the U.S. dollar against both the Canadian dollar and British pound sterling. The
increase in comparable store sales resulted from a 4% increase in the number of customer transactions and a 2% increase
in the average value per transaction.
Total International specialty revenues increased 24% to $170 million for the fiscal year ended 2005, compared to
$137 million for the 53-week period of fiscal 2004. Excluding the impact of the extra week in fiscal 2004, International
specialty revenues increased 26%. International licensing revenues increased 22% to $146 million for the fiscal year
ended 2005, compared to $119 million in the 53-week period of fiscal 2004. Excluding the impact of the extra week in
2004, International licensing revenues increased 24%, due to higher product sales and royalty revenues from opening 330
new licensed retail stores in the last 12 months. International foodservice and other revenues increased 38% to $24 million
for the fiscal year ended 2005, compared to $18 million in the 53-week period of fiscal 2004. Excluding the impact of the
extra week in 2004, international foodservice and other revenues increased 41%, primarily due to growth in new and
existing foodservice accounts.
International operating income increased to $82 million for the fiscal year ended 2005, compared to $47 million in the
53-week period of fiscal 2004. Operating margin increased to 8.0% of related revenues from 5.9% in the 53-week period
of fiscal 2004, primarily due to leverage gained on most fixed costs distributed over an expanded revenue base.
30 STARBUCKS CORPORATION, FORM 10-K