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Starbucks Gross Margin %

: 27.41% (As of Jun. 2022)
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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. 2022 was $2,234 Mil. Starbucks's Revenue for the three months ended in Jun. 2022 was $8,150 Mil. Therefore, Starbucks's Gross Margin % for the quarter that ended in Jun. 2022 was 27.41%.

Warning Sign:

Starbucks Corp gross margin has been in long-term decline. The average rate of decline per year is -4.3%.


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

SBUX' s Gross Margin % Range Over the Past 10 Years
Min: 21.51   Med: 29.24   Max: 31.63
Current: 26.87


During the past 13 years, the highest Gross Margin % of Starbucks was 31.63%. The lowest was 21.51%. And the median was 29.24%.

SBUX's Gross Margin % is ranked worse than
78.27% of 336 companies
in the Restaurants industry
Industry Median: 43.95 vs SBUX: 26.87

Starbucks had a gross margin of 27.41% for the quarter that ended in Jun. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Starbucks was -4.30% 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 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.53 29.60 28.25 21.51 28.87

Starbucks Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 31.00 29.24 26.38 24.30 27.41

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. 2021 is calculated as

Gross Margin % (A: Sep. 2021 )=Gross Profit (A: Sep. 2021 ) / Revenue (A: Sep. 2021 )
=8391 / 29060.6
=(Revenue - Cost of Goods Sold) / Revenue
=(29060.6 - 20669.6) / 29060.6
=28.87 %

Starbucks's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=2234 / 8150.1
=(Revenue - Cost of Goods Sold) / Revenue
=(8150.1 - 5916.1) / 8150.1
=27.41 %

* 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 27.41% for the quarter that ended in Jun. 2022 => 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
Address
2401 Utah Avenue South, Seattle, WA, USA, 98134
Starbucks is one of the most widely recognized restaurant brands in the world, operating more than 34,300 stores across more than 80 countries as of the end of the first quarter of fiscal 2022. The firm operates in three segments: North America, international markets, and channel development (grocery and ready-to-drink beverage). The coffee chain generates revenue from company-operated stores, royalties, sales of equipment and products to license partners, ready-to-drink beverages, packaged coffee sales, and single-serve products.
Executives
Jenkins Zabrina officer: Interim evp, general counsel C/O RETAIL OPPORTUNITY INVESTMENT CORP. 11250 EL CAMINO REAL. SUITE 200 SAN DIEGO CA 92130
Woods Gina officer: evp, Public Affairs 2401 UTAH AVENUE SOUTH #800 SEATTLE WA 98134
Conway Michael Aaron officer: group president International 18 LOVETON CIRCLE SPARKS MD 21152
Ruggeri Rachel officer: evp, cfo 2401 UTAH AVENUE SOUTH #800 SEATTLE WA 98134
Lis Angela officer: evp, chief partner officer 2401 UTAH AVENUE SOUTH EX6 SEATTLE WA 98134
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
Mahe Isabel director ONE APPLE PARK WAY MS169:2CL CUPERTINO CA 95014
Campion Andrew director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Walker Jill officer: svp chief accounting officer 2401 UTAH AVENUE SOUTH SEATTLE WA 98134
Grismer Patrick J officer: executive vice president 71 SOUTH WACKER DRIVE, 12TH FLOOR CHICAGO IL 60606
Gonzalez Rachel A officer: evp, general counsel & sec. 3150 SABRE DRIVE SOUTHLAKE TX 76092
Mutty Paul officer: svp, deputy general counsel 2401 UTAH AVENUE SOUTH #800 SEATTLE WA 98134
Brewer Rosalind G director C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202
Knudstorp Jorgen Vig director 2401 UTAH AVENUE SOUTH SEATTLE WA 98134

Starbucks Headlines

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