Starbucks has established themselves as the giant in the gourmet yet quickly served coffee industry. Sure, there are other competitors nipping at their proverbial heels like Dunkin Donuts, Caribou and Seattle's Best (at least until Starbucks bought them out) but Starbucks is national and ubiquitous on a level that these other more regional and/or smaller outfits can only dream of. Not only do they have a lockdown on the store-based market but they are also branching out into the home market by selling conventional coffee beans, K-Cups for the Keurig single-serve coffee makers and they also have started their own line of machines on top of that. While Starbucks should dare not be complacent or fail to look forward to the future, their current fortunes and progress are quite good and are unlikely to change in at least the near future due to aggressive expansion plans and good practices.
Total net revenues were up in double digit percentage points clocking in at twelve percent even which comes to a grand total of nearly $15 billion USD for fiscal 2013. Global sales also went up sharply by a total of seven percent between the increases in overall transactions and the average overall transaction sale amount. In other words, people are visiting more but they are also spending more per visit. However, operating income dipped but it was attributed to a litigation cost relating to a legal fracas with Kraft Foods. Cash flow shot up nearly a billion and capital expenditures also grew by nearly double from $856 million to $1.26 billion.
The result of operations shows that the vast majority, but certainly not all, of Starbucks' revenue comes from…
