Starbucks 2015 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2015 Starbucks annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

Segment Information
Results of operations by segment (in millions):
Americas
Fiscal Year Ended
Sep 28,
2014
Sep 29,
2013
Sep 28,
2014
Sep 29,
2013
As a % of Americas Total
Net Revenues
Net revenues:
Company-operated stores $ 10,866.5 $ 10,038.3 90.7 % 91.3 %
Licensed stores 1,074.9 915.4 9.0 8.3
Foodservice and other 39.1 47.1 0.3 0.4
Total net revenues 11,980.5 11,000.8 100.0 100.0
Cost of sales including occupancy costs 4,487.0 4,214.9 37.5 38.3
Store operating expenses 3,946.8 3,710.2 32.9 33.7
Other operating expenses 100.4 96.9 0.8 0.9
Depreciation and amortization expenses 469.5 429.3 3.9 3.9
General and administrative expenses 167.8 186.7 1.4 1.7
Total operating expenses 9,171.5 8,638.0 76.6 78.5
Income from equity investees — 2.4 — —
Operating income $ 2,809.0 $ 2,365.2 23.4% 21.5%
Store operating expenses as a percentage of company-
operated store revenues 36.3 % 37.0 %
Revenues
Americas total net revenues for fiscal 2014 increased $980 million, or 9%, primarily due to increased revenues from company-
operated stores (contributing $828 million) and licensed stores (contributing $160 million).
The increase in company-operated store revenues was driven by a 6% increase in comparable store sales (approximately $554
million), attributable to a 3% increase in average ticket and a 2% increase in number of transactions, and incremental revenues
from 314 net new Starbucks® company-operated store openings over the past 12 months (approximately $377 million).
Partially offsetting these increases was unfavorable foreign currency translation (approximately $65 million), primarily driven
by the strengthening of the U.S. dollar against the Canadian dollar.
The increase in licensed store revenues was primarily due to increased product sales to and royalty revenues from our licensees
as a result of an increase in comparable store sales and the opening of 381 net new licensed stores over the past 12 months.
Operating Expenses
Cost of sales including occupancy costs as a percentage of total net revenues decreased 80 basis points, primarily due to sales
leverage (approximately 40 basis points) and lower commodity costs (approximately 30 basis points), mainly coffee.
Store operating expenses as a percentage of total net revenues decreased 80 basis points. As a percentage of company-operated
store revenues, store operating expenses decreased 70 basis points, mainly driven by sales leverage (approximately 60 basis
points).
General and administrative expenses as a percentage of total net revenues decreased 30 basis points primarily due to lapping of
costs associated with our leadership conference held in the prior year (approximately 20 basis points) and sales leverage
(approximately 10 basis points).
The combination of these changes resulted in an overall increase in operating margin of 190 basis points over fiscal 2013.
Starbucks Corporation 2015 Form 10-K 33