27. Starbucks Corporation (SBUX) (Group 6)
Headquartered in Seattle, Washington and the world’s largest coffee company, being a premier roaster, marketer and retailer of specialty coffee in the world. Starbucks has over 24,000 stores in 76 countries. The company provides customers with the “Starbucks Experience” – comprised of excellent customer service, clean stores, appropriate music, and a comfortable setting. Currently, Starbucks’ Americas segment generates about 69 percent of total revenues. Millions of people every day meet at Starbucks to talk, do business, complete work, and chat with friends. The music selected to play in the stores enhances the relaxed look and feel of the coffeehouse. Starbucks offers a full coffeehouse experience, complete with premium teas, fine pastries, and other sweets. The company also sells a variety of coffee and tea products through licensed stores, grocery stores, and foodservice accounts. Several brands associated with Starbucks are Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, and Ethos.
In February 2018, Starbucks and JP Morgan Chase began offering the Starbucks Rewards Visa Card, a co-brand credit card integrated directly into the Starbucks Reward loyalty program. Customers using this Visa card earn Stars with every purchase both in and out of Starbucks stores, and can redeem their Stars for food and beverage items at more than 8,000 participating Starbucks locations. Cardholders also become members of the Starbucks Rewards loyalty program comprised of more than 14 million members. Later in 2018, Starbucks and Chase plan to offer a second co-branded product, the Starbucks Rewards Visa Prepaid Card.
Starbucks’ fiscal year ends on September 30. For the company’s fiscal Q1 2018 that ended 12-31-17, revenues increased six percent to a record $6 billion, with comparable store sales up 2 percent. For that Q1, company’s revenues from stores in China increased 30 percent, with comparable store sales up six percent. Starbucks as a whole is performing really well.
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