Wednesday, November 7, 2012

Blog #4: Profit, Loss, and Revenue in regards to Starbucks


Over the past four years, from 2009-2012, Starbucks has an incredible increase in their profit. According to their income statement-all numbers pertaining to income statement is in thousands-in 2009 they had a net income of 390,800 (Yahoo Finance, income statement). During their financial period in 2010, they increased their net income to 945,600 (Yahoo Finance, income statement). Starbucks was able to increase their profits again in 2011 with a net income of 1,245,700 (Yahoo Finance, income statement). There profits have already surpassed that number in the third quarter of 2012 as their net income as of July 1, 2012 is already 1,383,800. (Forbes).  Not only is this increase in net income very impressive, but so is their revenue in regards to their losses. The reason that Starbucks has been able to have such increase is because even though their losses have increased, the company has found ways to increase their revenue by a higher percentage.  The profit of Starbucks has also affected the company’s stock price. From 2009 to today, Starbucks’ stock has increased from a mere 7.83 to a 51.44 showing investor confidence (Yahoo Finance, chart). This portrays how effective increasing profit can be for a company, and especially for something as important as stocks             
           
http://data.cnbc.com/quotes/SBUX/tab/5

    As portrayed above is the graph that shows the earning per share for Starbucks. They have not been able to beat estimates in 2012, which is shown by a green arrow. However, the company has been increasing in EPS since the second quarter of 2012 and is estimated to continue this increase into 2013. Another positive for Starbucks’ earning report was that it was called the shot that cripples the bear these by Oppenhiemer (Andrejczk). Starbucks has the possibility to increase both their profits and EPS over their next fiscal year, just as they did this one.

Work Cited:
 
Andrejczak, M.( November 2, 2012). Starbucks bulls feeling vindicated after latest results. Retrieved from: http://blogs.marketwatch.com/thetell/2012/11/02/starbucks-bulls-feeling-vindicated-after-latest-results/

Cnbc Data. (2012) Starbucks Corp. Retrieved from: http://data.cnbc.com/quotes/SBUX/tab/5

Yahoo Finance.(2012). Starbucks Corporation (SBUX). Retrieved from: http://finance.yahoo.com/q/is?s=SBUX

Forbes(2012). Starbucks Corp. Retrieved from: http://finapps.forbes.com/finapps/jsp/finance/compinfo/IncomeStatement.jsp?tkr=SBUX
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3 comments:

  1. AnonymousNovember 18, 2012 at 10:12 PM

    I agree that Starbucks has had impressive growth over the past several years.

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  2. UnknownNovember 19, 2012 at 4:36 AM

    Wow. To be honest I did not think that Starbucks would have such a rapid growth, especially so soon after the recession. I know that I will always splurge for Starbucks, partially because they have such a good rewards program; something I find many other quick service restaurants (like Dunkin' Donuts) lack. Overall, I think Starbucks is a very competitive restaurant in this industry, and as we enter the recovery stage, I can only imagine their profits to be higher. However, despite the fact it has such a strong customer base, I think it will have to compete with placecs like Panera because Panera offers a similar dining experience but with way more food options.

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  3. UnknownNovember 19, 2012 at 4:59 AM

    Personally, I found the increase in stock price to be most interesting. A jump from $7.83 to $51.44 in only three years is huge! I would like to see where Starbucks is headed into the future. Do you believe that they will be able to replicate this feat in another three years?

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