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Starbucks (NAS:SBUX) Operating Margin %

: 15.17% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Starbucks's Operating Income for the three months ended in Dec. 2023 was $1,430 Mil. Starbucks's Revenue for the three months ended in Dec. 2023 was $9,425 Mil. Therefore, Starbucks's Operating Margin % for the quarter that ended in Dec. 2023 was 15.17%.

Good Sign:

Starbucks Corp operating margin is expanding. Margin expansion is usually a good sign.

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

SBUX' s Operating Margin % Range Over the Past 10 Years
Min: 6.45   Med: 15.72   Max: 18.08
Current: 15.62


SBUX's Operating Margin % is ranked better than
90.26% of 349 companies
in the Restaurants industry
Industry Median: 4.24 vs SBUX: 15.62

Starbucks's 5-Year Average Operating Margin % Growth Rate was 1.90% per year.

Starbucks's Operating Income for the three months ended in Dec. 2023 was $1,430 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $5,731 Mil.


Starbucks Operating Margin % Historical Data

The historical data trend for Starbucks's Operating 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 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.77 6.45 16.03 13.74 15.30

Starbucks Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating 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 13.78 13.69 16.59 16.93 15.17

Competitive Comparison

For the Restaurants subindustry, Starbucks's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % Distribution

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

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



Starbucks Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Starbucks's Operating Margin % for the fiscal year that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=5502.9 / 35975.6
=15.30 %

Starbucks's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1429.5 / 9425.3
=15.17 %

* 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.


Starbucks  (NAS:SBUX) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Starbucks Operating Margin % Related Terms

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


Starbucks (NAS:SBUX) Business Description

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 38,000 stores across more than 80 countries as of the end of fiscal 2023. 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
Sara Kelly officer: evp, chief partner officer 2401 UTAH AVENUE SOUTH, SEATTLE WA 98134
Rachel Ruggeri officer: evp, cfo 2401 UTAH AVENUE SOUTH, #800, SEATTLE WA 98134
Michael Aaron Conway officer: group president International 18 LOVETON CIRCLE, SPARKS MD 21152
Wei Zhang director RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Bradley E Lerman officer: evp, general counsel MEDTRONIC, INC., 710 MEDTRONIC PKWY MSLC300, MINNEAPOLIS MN 55432
Beth Ford director C/O CORPORATE SECRETARY SCHOLASTIC CORP, 557 BROADWAY, NEW YORK NY 10012
Zabrina Jenkins officer: Interim evp, general counsel C/O RETAIL OPPORTUNITY INVESTMENT CORP., 11250 EL CAMINO REAL. SUITE 200, SAN DIEGO CA 92130
Clara Shih director 2401 UTAH AVE S, # 800, SEATTLE WA 98134
Laxman Narasimhan officer: ceo-elect PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Mellody L Hobson director C/O TELLABS, 1415 W DIEHL RD, NAPERVILLE IL 60563
Allison Richard E Jr director 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Howard D Schultz director, officer: chairman, president and ceo 2401 UTAH AVE SOUTH, SEATTLE WA 98134
Angela Lis officer: evp, chief partner officer 2401 UTAH AVENUE SOUTH, EX6, SEATTLE WA 98134
Kevin R Johnson director 2401 UTAH AVE. S, SUITE 800, SEATTLE WA 98134
Gina Woods officer: evp, Public Affairs 2401 UTAH AVENUE SOUTH, #800, SEATTLE WA 98134