Starbucks
-3.49 %
-1.23 %
Yet to be announced
Company Overview
Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages. As of October 3, 2021, it operated 16,826 company-operated and licensed stores in North America.
Revenue Sources
PassAfter reviewing Starbucks' revenue sources, their primary income streams come from coffee, tea, food items, and related beverages. While they do serve some alcohol in select locations, this represents significantly less than 1% of their total revenue. The company's core business model remains focused on coffee and food service.
Reliance on Interest
| Reporting Date | Total Revenue | Total Expense | Interest Income | Interest Expense | Interest Income Ratio | Interest Expense Ratio |
|---|---|---|---|---|---|---|
| March 30, 2025 | $8.76b | $8.29b | - | $127.3m | 0.00% | 1.54% |
| Dec. 29, 2024 | $9.4b | $8.4b | - | $127.2m | 0.00% | 1.51% |
| Sept. 29, 2024 | $9.07b | $7.91b | - | $140.0m | 0.00% | 1.77% |
| June 30, 2024 | $9.11b | $7.74b | - | $141.3m | 0.00% | 1.83% |
Based on the financial data from the last four quarters, Starbucks has consistent interest expenses ranging from $140-141.3 million per quarter, while their total expenses range from $7.6-8.1 billion per quarter. The interest expense ratio consistently remains below 2% of total expenses, indicating that interest is not a material part of their business model.
Operational Ethics
PassWhile Starbucks operates in China, there is no clear evidence of direct collaboration with the Chinese Communist Party. The company maintains standard business operations in the country through its stores. Starbucks has a presence in Israel through licensed stores but does not maintain direct operations or R&D centers there.
How can it achieve a comfortable rating, especially with their link with the Israel. I would appreciate PIF view on it, Jazakallah!