Starbucks Corporation is a leading roaster, marketer, and retailer of specialty coffee worldwide, operating in 87 markets. The company's primary objective is to maintain its standing as a recognized and respected brand globally. Starbucks purchases and roasts high-quality coffees, selling them alongside handcrafted beverages, tea, and food items through company-operated stores. Additionally, it sells coffee and tea products, licenses its trademarks, and operates a Global Coffee Alliance with Nestlé. Beyond its flagship Starbucks Coffee® brand, the company also operates under Teavana®, Ethos®, and Starbucks Reserve® brands. Starbucks emphasizes innovation in beverages, equipment, processes, and technology, including its digital platform, to offer new products and experiences to consumers. The company is committed to ethical sourcing and positive global impact, focusing on partners, communities, and the planet.

• Employees: 361,000 (as of September 29, 2024)
• Geographic Footprint: 87 markets
• Headquarters: 2401 Utah Avenue South, Seattle, Washington 98134
• Founded: 1985
• Number of locations/facilities: 21,018 company-operated stores, 19,181 licensed stores (as of September 29, 2024)
• Revenue: $36.2 billion (FY2024)
• Market Capitalization: $103.4 billion (as of March 31, 2024)
• Key Subsidiaries/Brands: Teavana, Ethos, Starbucks Reserve

• CEO: Brian Niccol
• CFO: Rachel Ruggeri
• CEO, Starbucks International: Brady Brewer
• Chief Partner Officer: Sara Kelly
• Chief Legal Officer: Brad Lerman

Brian Niccol joined Starbucks as chairman and CEO in September 2024, after leading Chipotle Mexican Grill. Rachel Ruggeri has been with Starbucks since 2001, becoming CFO in 2021. Brady Brewer, with Starbucks since 2001, became CEO of Starbucks International in April 2024. Sara Kelly, also joining Starbucks in 2001, became chief partner officer in 2022. Brad Lerman joined as chief legal officer in April 2024.

• Annual Revenue: $36.2 billion (FY2024)
• Net Income: $3.8 billion (FY2024)
• Market Cap: $103.4 billion (as of March 31, 2024)
• Total Assets: $31.3 billion (FY2024)
• Number of employees: 361,000 (as of September 29, 2024)
• Key Financial Highlights: Revenue increased 1% YoY, operating margin decreased 130 basis points to 15.0% due to investments in wages and benefits, deleverage, and increased promotional activity, partially offset by pricing and operational efficiencies.

Starbucks offers a range of products and services, primarily centered around coffee:

• Handcrafted Beverages: Core offerings include various coffee, tea, and other beverages prepared in-store.
• Food Items: Complementary food items such as pastries, breakfast sandwiches, and lunch options.
• Packaged Coffee and Tea: Whole bean and ground coffees, tea products, and single-serve offerings sold through various channels.
• Ready-to-Drink Beverages: Bottled Frappuccinos, Starbucks Doubleshot, and other ready-to-drink products.
• Merchandise: Serveware and other branded items.

Starbucks operates through three reportable segments:

• North America: Includes company-operated and licensed stores in the U.S. and Canada, representing 75% of FY2024 revenue.
• International: Encompasses company-operated and licensed stores in China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America, and the Caribbean, contributing 20% of FY2024 revenue.
• Channel Development: Focuses on sales of packaged coffee, tea, and ready-to-drink beverages through grocery stores, and other retail channels globally, including through the Global Coffee Alliance with Nestlé. This segment generated 5% of FY2024 revenue.

Starbucks' primary objective is to maintain its position as a leading specialty coffee brand. Key strategies include expanding the global store base, driving innovation across products and technology, and investing in the partner experience. Due to recent challenges, including decreased customer traffic, Starbucks is implementing a "Back to Starbucks" strategy. This initiative focuses on supporting partners, enhancing the customer experience, reinforcing the company's community focus, and innovating the coffee experience through product development, marketing, and in-store enhancements. This strategy involves assessing and refocusing the business, including capital allocation priorities, efficiency efforts, and store growth initiatives.

Starbucks operates in the highly competitive specialty coffee market, competing with other coffee shops and retailers, quick-service restaurants, and ready-to-drink beverage companies. The company faces competition based on product quality, brand reputation, service, convenience, and price. It also competes for prime retail locations and qualified personnel.

• Declining Customer Traffic: Reduced customer traffic in FY2024, particularly in China, pressured financial results and necessitates strategic changes.
• Brand Value Dependence: Success hinges on maintaining a strong brand reputation, which is vulnerable to negative incidents or perceptions related to product quality, service, ethics, or social responsibility.
• Global Operations Complexity: Operating in diverse international markets exposes the company to various economic, political, and regulatory risks, including supply chain disruptions, currency fluctuations, and compliance challenges.
• Labor Costs and Availability: Rising labor costs, unionization efforts, and potential labor shortages pose challenges to profitability and operational efficiency.
• Competition: Intense competition in all segments, including from established players and new entrants, requires continuous innovation and effective pricing strategies.