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Starbucks Gross Margin %

: 31.00% (As of Jun. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Starbucks's Gross Profit for the three months ended in Jun. 2021 was $2,324 Mil. Starbucks's Revenue for the three months ended in Jun. 2021 was $7,497 Mil. Therefore, Starbucks's Gross Margin % for the quarter that ended in Jun. 2021 was 31.00%.

Warning Sign:

Starbucks Corp gross margin has been in long term decline. The average rate of decline per year is -6.1%.


The historical rank and industry rank for Starbucks's Gross Margin % or its related term are showing as below:

NAS:SBUX' s Gross Margin % Range Over the Past 10 Years
Min: 21.51   Med: 28.93   Max: 31.63
Current: 27.85

21.51
31.63

During the past 13 years, the highest Gross Margin % of Starbucks was 31.63%. The lowest was 21.51%. And the median was 28.93%.

NAS:SBUX's Gross Margin % is ranked lower than
76% of the 331 Companies
in the Restaurants industry.

( Industry Median: 45.12 vs. NAS:SBUX: 27.85 )

Starbucks had a gross margin of 31.00% for the quarter that ended in Jun. 2021 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Starbucks was -6.10% per year.


Starbucks Gross Margin % Historical Data

The historical data trend for Starbucks's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Starbucks Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.63 30.53 29.60 28.25 21.51

Starbucks Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.74 24.88 27.16 27.78 31.00

Competitive Comparison

For the Restaurants subindustry, Starbucks's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Starbucks Gross Margin % Distribution

For the Restaurants industry and Consumer Cyclical sector, Starbucks's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Starbucks's Gross Margin % falls into.



Starbucks Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Starbucks's Gross Margin for the fiscal year that ended in Sep. 2020 is calculated as

Gross Margin % (A: Sep. 2020 )=Gross Profit (A: Sep. 2020 ) / Revenue (A: Sep. 2020 )
=5059.1 / 23518
=(Revenue - Cost of Goods Sold) / Revenue
=(23518 - 18458.9) / 23518
=21.51 %

Starbucks's Gross Margin for the quarter that ended in Jun. 2021 is calculated as


Gross Margin % (Q: Jun. 2021 )=Gross Profit (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=2323.6 / 7496.5
=(Revenue - Cost of Goods Sold) / Revenue
=(7496.5 - 5172.9) / 7496.5
=31.00 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Starbucks  (NAS:SBUX) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Starbucks had a gross margin of 31.00% for the quarter that ended in Jun. 2021 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Starbucks Gross Margin % Related Terms

Thank you for viewing the detailed overview of Starbucks's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Starbucks Business Description

Starbucks logo
Industry
Consumer Cyclical » Restaurants NAICS : 722515 SIC : 5461
Address
2401 Utah Avenue South, Seattle, WA, USA, 98134
Starbucks is one of the most widely recognized restaurant brands in the world, operating 33,300 stores across 83 countries as of June 2021. The firm operates in three segments: the Americas, international markets, and through retail channels via channel development. Starbucks primarily generates revenue from company-operated stores, with additional sales coming from royalties, sales of equipment and products to license partners, ready-to-drink beverages, fresh coffee, and single-serve coffee products.
Executives
Brewer Rosalind G director, officer: group president and coo C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202
Johnson Kevin R director, officer: president and ceo JUNIPER NETWORKS, INC. 1194 N. MATHILDA AVE. SUNNYVALE CA 94089
Ullman Myron E Iii director 100 SPEAR ST. SUITE 935 SAN FRANCISCO CA 94105
Shih Clara director 2401 UTAH AVE S # 800 SEATTLE WA 98134
Walker Jill officer: svp chief accounting officer 2401 UTAH AVENUE SOUTH SEATTLE WA 98134
Gonzalez Rachel A officer: evp, general counsel & sec. 3150 SABRE DRIVE SOUTHLAKE TX 76092
Hobson Mellody L director C/O TELLABS 1415 W DIEHL RD NAPERVILLE IL 60563
Kelly John Ac officer: evp, Public Affairs 2401 UTAH AVENUE SOUTH SEATTLE WA 98134
Allison Richard E Jr director 30 FRANK LLOYD WRIGHT DR ANN ARBOR MI 48105
Nadella Satya director C/O MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052-6399
Teruel Javier G director C/O COLGATE PALMOLIVE CO 300 PARK AVE 15TH FL NEW YORK NY 10022
Dillon Mary director ULTA BEAUTY, INC. 1000 REMINGTON BLVD SUITE 120 BOLINGBROOK IL 60440
Ramo Joshua Cooper director 350 PARK AVENUE 26TH FLOOR NEW YORK NY 10022
Campion Andrew director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Knudstorp Jorgen Vig director 2401 UTAH AVENUE SOUTH SEATTLE WA 98134

Starbucks Headlines

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