Starbucks 2011 Annual Report Download - page 33

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Revenues
Total US net revenues for fiscal 2011 increased 6%, or $478 million. The increase was primarily due to an 8%
increase in comparable store sales (contributing approximately $576 million), comprised of a 6% increase in
transactions (contributing approximately $420 million), and a 2% increase in average value per transaction
(contributing approximately $156 million), partially offset by the absence of the extra week in the current year
(approximately $143 million).
Operating Expenses
Cost of sales including occupancy costs as a percentage of total US net revenues increased by 10 basis points over
the prior year. The increase was primarily due to higher commodity costs (approximately 160 basis points) driven by
increased coffee costs, mostly offset by increased sales leverage (approximately 130 basis points).
Store operating expenses as a percentage of total US net revenues decreased 150 basis points primarily due to
increased sales leverage.
The above changes contributed to an overall increase in operating margin of 230 basis points for fiscal 2011.
Considering the impact from all line items, the primary drivers for the increase in operating margin were increased
sales leverage (approximately 360 basis points) and the absence of restructuring charges in the current year
(approximately 40 basis points). These increases were partially offset by higher commodity costs (approximately
160 basis points) driven by increased coffee costs.
International
Fiscal Year Ended
Oct 2,
2011
Oct 3,
2010
Oct 2,
2011
Oct 3,
2010
As a % of
International Total
Net Revenues
Total net revenues ........................................ $2,626.1 $2,288.8 100.0% 100.0%
Costofsalesincludingoccupancycosts ........................ $1,259.8 $1,078.2 48.0% 47.1%
Storeoperatingexpenses .................................... 773.8 719.5 29.5% 31.4%
Otheroperatingexpenses ................................... 91.9 85.7 3.5% 3.7%
Depreciationandamortizationexpenses ........................ 118.5 108.6 4.5% 4.7%
Generalandadministrativeexpenses........................... 132.9 126.6 5.1% 5.5%
Restructuringcharges ...................................... 0.0 25.8 0.0% 1.1%
Totaloperatingexpenses .................................... 2,376.9 2,144.4 90.5% 93.7%
Incomefromequityinvestees ................................ 100.5 80.8 3.8% 3.5%
Operating income ........................................ $ 349.7 $ 225.2 13.3% 9.8%
Supplemental ratios as a % of related revenues:
Storeoperatingexpenses .................................... 35.4% 37.2%
Revenues
Total International net revenues for fiscal 2011 increased 15%, or $337 million. The increases were primarily driven
by foreign currency translation resulting from the weakening of the US dollar (approximately $126 million),
primarily in relation to the Canadian dollar, comparable store sales of 5% (contributing approximately $96 million),
and net new company-operated store openings (approximately $57 million). These increases were partially offset by
the absence of the extra week in fiscal 2011 (approximately $45 million). The increase in comparable store sales was
due to a 4% increase in transactions (contributing approximately $74 million), and a 1% increase in average value
per transaction (contributing approximately $22 million).
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