Corporate Profiles - 2021 - 104

COMPANY OVERVIEW
Starbucks Corp.
S
tarbucks Corp. may be a beverage-first
company, but food is becoming increasingly
important for the Seattle-based coffee
chain, which was evident early in the year.
Rosalind Gates Brewer, then chief operating
officer and group president of the Americas, in
a Jan. 26 earnings call said the company's goal
is to align with customer preferences and understand
how those preferences are trending.
" We're learning how to match and pair coffee
with great food and beverage items, " said
Ms. Brewer, who later in the year left Starbucks
to become chief executive officer of Walgreens.
" The work ahead of us by no means minimizes
food. Actually, we see it as a golden opportunity. "
Such insights are driving record food attach at
Starbucks, with breakfast wraps, breakfast sandwiches
(including the plant-based Impossible
Breakfast Sandwich) and cake pops delivering
strong results.
Kevin R. Johnson, president and CEO, told
analysts during the company's first-quarter
earnings call Jan. 26 to expect " more and more
plant-based proteins in our food menu. "
Plant-based also is resonating in beverages,
with dairy-free cold coffee items like the Iced
Brown Sugar Oatmilk Shaken Espresso exceeding
management's expectations.
Alternative
Food represents a 'golden opportunity' for coffee chain
dairy offerings accounted for nearly a quarter of
milk-related beverage sales at Starbucks in the
third quarter ended June 27.
" Probably the most dominant shift in consumer
behavior is this whole shift toward plantbased, "
Mr. Johnson said in a July 27 conference
call to discuss third-quarter results. " These innovative
offerings in cold and alternative dairy
are particularly attractive to millennial and Gen
Z customers. "
Net income in the third quarter was $1.15
billion, equal to 97ยข per share on the common
stock, up from a loss of $678.4 million in the
same period a year ago. Quarterly revenues grew
78% to $7.5 billion.
Strong demand for food items and alternative
dairy offerings resulted in the company's
highest-ever average ticket size.
Sustained
growth in premium offerings like cold beverages
and in customized drinks also contributed
to the elevated ticket.
" Over the last two years, we've seen a meaningful
increase in customizations, such as adding
cold foam or a shot of espresso, " Mr. Johnson said.
Recovery from the COVID-19 pandemic largely
has been a tale of two segments at Starbucks.
Urban stores in central business districts lagged
behind suburban drive-thrus, which accounted
for nearly half of all sales in the United States in
the third quarter. As part of its years-long store
portfolio transformation, Starbucks has focused
on increasing convenience-led formats with
drive-thru options.
The store portfolio transformation also includes
the expansion of new Starbucks Pickup stores in
dense markets like New York, Chicago, Seattle and
San Francisco. Management expects average ticket
size may decrease moderately in 2022 as more
people return to the office and place single-drink
orders in those urban locations.
" As we see more single-beverage transactions,
we expect our ticket to moderate, but we
do believe that our ticket will remain elevated
compared to pre-pandemic levels, " said Rachel
Ruggeri, executive vice president and chief financial
officer. " Drivers of that are the continued
attach we see in food... and our ability to continue
to move customers to our cold beverages,
which have a more premium price. " CP
Chief executive officer -
Kevin R. Johnson
Starbucks net earnings
(fiscal years ended in September)
Starbucks net revenues
(fiscal years ended in September)
Starbucks share price
per share
$4,518
$3,599
$928
$24,720
$26,509
$23,518
$76
$91
$106
$121
$136
2018
2019
2020
2018
2019
2020
Oct. Dec.
2020
Feb.
2021
Apr.
June
Aug.
104 \ October 2021
Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry * Pet Food Processing * Dairy Processing
Corporate Profiles
in millions
in millions

Corporate Profiles - 2021

Table of Contents for the Digital Edition of Corporate Profiles - 2021

Corporate Profiles - 2021 - 1
Corporate Profiles - 2021 - 2
Corporate Profiles - 2021 - 3
Corporate Profiles - 2021 - 4
Corporate Profiles - 2021 - 5
Corporate Profiles - 2021 - 6
Corporate Profiles - 2021 - 7
Corporate Profiles - 2021 - 8
Corporate Profiles - 2021 - 9
Corporate Profiles - 2021 - 10
Corporate Profiles - 2021 - 11
Corporate Profiles - 2021 - 12
Corporate Profiles - 2021 - 13
Corporate Profiles - 2021 - 14
Corporate Profiles - 2021 - 15
Corporate Profiles - 2021 - 16
Corporate Profiles - 2021 - 17
Corporate Profiles - 2021 - 18
Corporate Profiles - 2021 - 19
Corporate Profiles - 2021 - 20
Corporate Profiles - 2021 - 21
Corporate Profiles - 2021 - 22
Corporate Profiles - 2021 - 23
Corporate Profiles - 2021 - 24
Corporate Profiles - 2021 - 25
Corporate Profiles - 2021 - 26
Corporate Profiles - 2021 - 27
Corporate Profiles - 2021 - 28
Corporate Profiles - 2021 - 29
Corporate Profiles - 2021 - 30
Corporate Profiles - 2021 - 31
Corporate Profiles - 2021 - 32
Corporate Profiles - 2021 - 33
Corporate Profiles - 2021 - 34
Corporate Profiles - 2021 - 35
Corporate Profiles - 2021 - 36
Corporate Profiles - 2021 - 37
Corporate Profiles - 2021 - 38
Corporate Profiles - 2021 - 39
Corporate Profiles - 2021 - 40
Corporate Profiles - 2021 - 41
Corporate Profiles - 2021 - 42
Corporate Profiles - 2021 - 43
Corporate Profiles - 2021 - 44
Corporate Profiles - 2021 - 45
Corporate Profiles - 2021 - 46
Corporate Profiles - 2021 - 47
Corporate Profiles - 2021 - 48
Corporate Profiles - 2021 - 49
Corporate Profiles - 2021 - 50
Corporate Profiles - 2021 - 51
Corporate Profiles - 2021 - 52
Corporate Profiles - 2021 - 53
Corporate Profiles - 2021 - 54
Corporate Profiles - 2021 - 55
Corporate Profiles - 2021 - 56
Corporate Profiles - 2021 - 57
Corporate Profiles - 2021 - 58
Corporate Profiles - 2021 - 59
Corporate Profiles - 2021 - 60
Corporate Profiles - 2021 - 61
Corporate Profiles - 2021 - 62
Corporate Profiles - 2021 - 63
Corporate Profiles - 2021 - 64
Corporate Profiles - 2021 - 65
Corporate Profiles - 2021 - 66
Corporate Profiles - 2021 - 67
Corporate Profiles - 2021 - 68
Corporate Profiles - 2021 - 69
Corporate Profiles - 2021 - 70
Corporate Profiles - 2021 - 71
Corporate Profiles - 2021 - 72
Corporate Profiles - 2021 - 73
Corporate Profiles - 2021 - 74
Corporate Profiles - 2021 - 75
Corporate Profiles - 2021 - 76
Corporate Profiles - 2021 - 77
Corporate Profiles - 2021 - 78
Corporate Profiles - 2021 - 79
Corporate Profiles - 2021 - 80
Corporate Profiles - 2021 - 81
Corporate Profiles - 2021 - 82
Corporate Profiles - 2021 - 83
Corporate Profiles - 2021 - 84
Corporate Profiles - 2021 - 85
Corporate Profiles - 2021 - 86
Corporate Profiles - 2021 - 87
Corporate Profiles - 2021 - 88
Corporate Profiles - 2021 - 89
Corporate Profiles - 2021 - 90
Corporate Profiles - 2021 - 91
Corporate Profiles - 2021 - 92
Corporate Profiles - 2021 - 93
Corporate Profiles - 2021 - 94
Corporate Profiles - 2021 - 95
Corporate Profiles - 2021 - 96
Corporate Profiles - 2021 - 97
Corporate Profiles - 2021 - 98
Corporate Profiles - 2021 - 99
Corporate Profiles - 2021 - 100
Corporate Profiles - 2021 - 101
Corporate Profiles - 2021 - 102
Corporate Profiles - 2021 - 103
Corporate Profiles - 2021 - 104
Corporate Profiles - 2021 - 105
Corporate Profiles - 2021 - 106
Corporate Profiles - 2021 - 107
Corporate Profiles - 2021 - 108
Corporate Profiles - 2021 - 109
Corporate Profiles - 2021 - 110
Corporate Profiles - 2021 - 111
Corporate Profiles - 2021 - 112
Corporate Profiles - 2021 - 113
Corporate Profiles - 2021 - 114
Corporate Profiles - 2021 - 115
Corporate Profiles - 2021 - 116
https://www.nxtbook.com/sosland/mbncp/corporate-profiles-2021
https://www.nxtbook.com/sosland/mbncp/2020_10_01
https://www.nxtbook.com/sosland/mbncp/2019_11_01
https://www.nxtbook.com/sosland/mbncp/2018_10_01
https://www.nxtbook.com/sosland/mbncp/2017_10_01
https://www.nxtbook.com/sosland/mbncp/2016_11_01
https://www.nxtbook.com/sosland/mbncp/2015_10_01
https://www.nxtbook.com/sosland/mbncp/2014_11_01
https://www.nxtbook.com/sosland/mbncp/2014_10_01
https://www.nxtbook.com/sosland/mbncp/2013_11_01
https://www.nxtbook.com/sosland/mbncp/2012_1001
https://www.nxtbook.com/sosland/mbncp/2011_10_01
https://www.nxtbook.com/sosland/mbncp/2010_10_01
https://www.nxtbook.com/sosland/mbncp/2009_11_01
https://www.nxtbook.com/sosland/mbncp/2008_11_01
https://www.nxtbook.com/sosland/mbncp/2007_11_01
https://www.nxtbook.com/sosland/mbncp/2006_11_01
https://www.nxtbook.com/sosland/mbncp/2005_11_01
https://www.nxtbookmedia.com