Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Accounting
Comparison of Starbucks and the Dunkin Brands - Revenue, Cost of Sales, Accounts Receivable and Payable and Inventory
Starbucks is a well-known coffee house which operates using both company owned outlets as well as utilizing a franchise model. The firm has been successful, but has also faced challenges. The firm has shown significant growth since the humble origins in 1971, when the firm had only a single store, to the position where in 2011 the firm has more than 17,000 outlets in 55 different countries (Starbucks, 2011). While the growth may be impressive, it is the financial performance that accompanies that growth which will be of interest to investors or potential investors. The investors may want to look at the firms' performance and assess the degree to which the investment is sound. This can include many ratios and measures, in this case the aspect of soundness may be considered by looking at ratios and trends concerning revenue, cot of goods sold, accounts receivable and payable and inventory. The investor will look at...
Therefore, when looking at Starbucks a comparison will be made with the Dunkin Group, a company with a similar profile, which also uses company owned stores and franchises and sells food and beverages.
The first consideration is the revenue and the pattern shown in growth or decline,
Table 1 Revenue growth 2009-2011
2009
2010
2011
Starbucks revenue
9,775
10,707
11,700
Starbucks revenue growth
-5.86%
9.53%
9.27%
Dunkin revenue
Dunkin revenue growth n/a
3.53%
12.93%
In 2009 Starbucks had a slow down in growth; unsurprising due to the global recession. However, there is ongoing growth in 2010 and 2011. At Dunkin there is also growth, this is slower in 2010 but accelerates 2011; both firms appear to be moving in the right direction.
To assess…
80.29%
From this it is possible to see that the cost of goods sold to Starbucks is much higher than to Dunkin Group, however, this is not necessarily negative, as it reflects the type of goods sold. However, it does demonstrate potential fore Dunkin to translate this into a higher net profit is other costs can be controlled. The gross profit for Starbucks shows a slight decrease in 2011 compared to 2010, but with inflation on goods inwards and difficult financial conditions making firms wary increase prices this minimal decrease in the gross profit as a result in the slight proportional increase in cost of goods sold is not cause for concern. However, Dunkin have been able to increase their gross profit margin.
The cash flow may be considered when looking at the accounts receivable and payable. The accounts receivable are the amounts that the firm is owed at any period of time.
Aristotle began as the student of Plato, but a reader is hard pressed to find any particular similarities between the worldviews of the two. In fact, if we have studied Platonic Dualism and Plato's accompanying Theory of Forms, it starts to look like Aristotle's philosophy is based upon the attempt to be as un-Platonic as possible. Plato believed in a double nature of reality -- the real physical world that
leader within the educational sector, it is critical that that qualities of good leadership be reflected upon the entire course of ones career.The management and leadership of academic institution is in deed a challenge that often results in poor performance in our contemporary schools (Schmoker,2001). In this paper, we present an elaborate reflection of my views on educational leadership principles that I have explored in the context of your
Breast Cancer How Genes Influence Breast Cancer Director of the National Cancer Institute How Genes Influence Breast Cancer Many environmental factors can affect a person's risk of breast cancer, but they are not the only issues to consider. Genetics also play a strong role in whether a person develops breast cancer or avoids it. A strong family history of the disease can predispose a person to breast cancer, but it is not a guarantee
Industrial Revolution: Impact in Middle Class And Working Class / Conditions of Middle Class And Working Class Under Industrial Revolution The Industrial Revolution, was an advancement to new production processes in the period from 1760-1840. This advancement involved improving from the use of traditional hand production methods to the use of machines, modern chemical production and iron manufacturing processes, more efficient water supply, rising use of steam power, the advancement of
K-12 Curriculum and Instruction: Changing Paradigms in the 21st Century This is not your grandfathers' economy or his educational paradigm however; today's curriculum still appears as such and therein lays a very significant and challenging problem that presents to today's educators and leaders. According to Sir Ken Robinson, "We have a system of education that is modeled on the interest of industrialism and in the image of it. Schools are still
Management Accountant's Role In Total Quality Management Management accountants have conventionally focused on supporting corporate managers through providing relevant information that is utilized in the business planning process. This relevant information that has historically been provided by management accountants has largely been financial. However, the role of management accountants has changed in the recent past following the introduction of Total Quality Management (TQM). Total Quality Management is a relatively new management