Starbucks 2009 Annual Report Download - page 40

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Specialty revenues increased primarily due to higher product sales and royalty revenues from opening 550 new
licensed retail stores in fiscal 2008.
Fiscal Year Ended Sep 28,
2008 Sep 30,
2007 %
Change Sep 28,
2008 Sep 30,
2007
As a % of
International
Total Net
Revenues
Cost of sales including occupancy costs .............. $1,054.0 $ 824.6 27.8% 50.1% 48.6%
Store operating expenses ......................... 664.1 531.7 24.9 31.6 31.3
Other operating expenses ......................... 88.5 69.9 26.6 4.2 4.1
Depreciation and amortization expenses .............. 108.8 84.2 29.2 5.2 5.0
General and administrative expenses ................ 113.0 93.8 20.5 5.4 5.5
Restructuring charges............................ 19.2 — nm 0.9 —
Total operating expenses .................... 2,047.6 1,604.2 27.6 97.3 94.6
Income from equity investees...................... 54.2 45.7 18.6 2.6 2.7
Operating income ........................ $ 110.0 $ 137.7 (20.1)% 5.2% 8.1%
Supplemental ratios as a % of related revenues:
Store operating expenses ......................... 37.4% 37.0%
Other operating expenses ......................... 26.9% 27.0%
Operating margin decreased primarily due to higher cost of sales including occupancy costs driven by continued
expansion of lunch and warming programs in Canada, higher distribution costs, and higher building maintenance
expense due to store renovation activities. In addition, restructuring charges of $19.2 million recognized in fiscal
2008 had a 90 basis point impact on the operating margin, nearly all due to the closure of 61 Company-operated
stores in Australia.
Global Consumer Products Group
Fiscal Year Ended Sep 28,
2008 Sep 30,
2007 %
Change Sep 28,
2008 Sep 30,
2007
As a % of CPG
Total Net
Revenues
Net revenues:
Licensing . . . .................................. $392.6 $366.3 7.2% 52.5% 52.9%
Foodservice .................................. 355.0 326.1 8.9% 47.5 47.1
Total specialty ............................. $747.6 $692.4 8.0% 100.0% 100.0%
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