Starbucks 2007 Annual Report Download - page 32

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(1) As a percentage of related Company-operated retail revenues, store operating expenses were 41.5% and 40.7%
for the fiscal years ended October 1, 2006 and October 2, 2005, respectively.
(2) As a percentage of related total specialty revenues, other operating expenses were 27.9% and 27.0% for the
fiscal years ended October 1, 2006 and October 2, 2005, respectively.
United States total net revenues increased 21% to $6.2 billion for the fiscal year ended 2006, compared to
$5.1 billion for fiscal 2005.
United States Company-operated retail revenues increased 21% to $5.5 billion for the fiscal year ended 2006,
compared to $4.5 billion for fiscal 2005. United States Company-operated retail revenues increased primarily due to
the opening of 810 new Company-operated retail stores in the last 12 months and comparable store sales growth of
7% for fiscal 2006. The increase in comparable store sales was due to a 5% increase in the number of customer
transactions and a 2% increase in the average value per transaction.
Total United States specialty revenues increased 22% to $683 million for the fiscal year ended 2006, compared to
$558 million in fiscal 2005. United States licensing revenues increased 33% to $369 million, compared to
$278 million for fiscal 2005. United States licensing revenues increased due to increased product sales and royalty
revenues as a result of opening 733 new licensed retail stores in the last 12 months. Foodservice and other revenues
increased 12% to $314 million from $280 million for fiscal 2005. United States foodservice and other revenues
increased primarily due to growth in new and existing foodservice accounts.
United States operating income increased 17% to $955 million for the fiscal year ended 2006, from $819 million for
the fiscal year ended 2005. Operating margin decreased to 15.5% of related revenues from 16.1% in fiscal 2005. The
decrease was due to the recognition of stock-based compensation expense.
International
Oct 1,
2006
Oct 2,
2005
%
Change
Oct 1,
2006
Oct 2,
2005
52 Weeks Ended 52 Weeks Ended
As a % of
international total
net revenues
Net revenues:
Company-operated retail............. $1,087,858 $ 852,472 27.6% 83.5% 83.4%
Specialty:
Licensing ...................... 186,050 145,736 27.7 14.3 14.2
Foodservice and other ............. 29,006 24,285 19.4 2.2 2.4
Total specialty ................ 215,056 170,021 26.5 16.5 16.6
Total net revenues .................. 1,302,914 1,022,493 27.4 100.0 100.0
Cost of sales including occupancy costs . . . 625,008 511,761 22.1 48.0 50.1
Store operating expenses(1) ............ 407,771 317,075 28.6 31.3 31.1
Other operating expenses(2) ............ 50,900 32,061 58.8 3.9 3.1
Depreciation and amortization expenses . . . 66,800 56,705 17.8 5.1 5.5
General and administrative expenses...... 78,337 53,069 47.6 6.0 5.2
Total operating expenses ........... 1,228,816 970,671 26.6 94.3 95.0
Income from equity investees ........... 34,370 30,477 12.8 2.6 3.0
Operating income ............... $ 108,468 $ 82,299 31.8% 8.3% 8.0%
(1) As a percentage of related Company-operated retail revenues, store operating expenses were 37.5% and 37.2%
for the fiscal years ended October 1, 2006 and October 2, 2005, respectively.
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