Starbucks Corp. (SBUX) has rapidly grown into the world's dominant coffee shop-themed chain over five decades by roasting, marketing, and selling specialty coffee and an ever-expanding assortment of other beverages, food, and branded products. These products were sold through more than 32,900 stores in 83 markets around the world as of December 27, 2020. Beverages are the biggest revenue generator by product type. The Americas segment accounts for the vast majority of revenue for the Seattle-headquartered company.

Starbucks' primary competitors for sales of coffee beverages are other specialty coffee shops. While Starbucks dominates the U.S. market, it faces increasingly tough competition in international markets, including from U.K.-based Costa Coffee, a subsidiary of Coca-Cola Co. (KO); and China-based Luckin Coffee Inc. (LKNCY).

Key Takeaways

  • Starbucks sells beverages, food, and other items in 83 global markets.
  • The company gets the vast majority of sales from beverages and from its Americas segment, comprised of the U.S., Canada, and Latin America.
  • Starbucks is focusing on international expansion and new products for future growth.
  • Nearly all of Starbucks' stores have reopened after being closed for reasons related to the COVID-19 pandemic.
  • Starbucks is undergoing a major restructuring, including leadership changes and expected store closures.

Starbucks' Financials

Starbucks, like many restaurants and retailers, has been severely affected by the impacts of the COVID-19 pandemic over the past year. The coffee chain posted net earnings of $622.2 million for Q1 of its 2021 fiscal year (FY), the three-month period that ended December 27, 2020. Net earnings were down 29.7% compared to the year-ago quarter. Total operating income for the quarter was $913.5 million.

Net revenue in Q1 FY 2021 was $6.7 billion, down 4.9% from the same quarter a year ago. Broken down into product type, beverages sold within the company's operated stores were responsible for 63% of total revenue, while food sold in the company's stores comprised 17% of the total. Packaged and single-serve coffees and teas, serveware, royalty and licensing revenues, and other items comprised 20% of total revenue.

Starbucks said that its fiscal first quarter reflects continued recovery from the effects of the pandemic. The company also indicated that nearly all of its company-operated and licensed stores have re-opened after being closed for reasons related to the pandemic. However, many stores were operating at less than full capacity during the quarter.

Starbucks' Business Segments

Starbucks operates through three main business segments and breaks them down into revenue and operating income: Americas, International, and Channel Development. The company also provides data on non-reportable operating segments in a "Corporate and Other" category, which includes unallocated expenses. Corporate and Other posted an operating loss of $355.6 million despite net revenue of $20.5 million in Q1 FY 2021. These figures, as well as any negative amounts, were not used in the calculation of the segment percentage shares below nor in the pie charts above.


Starbucks' Americas segment comprises company-owned and licensed stores in the U.S., Canada, and Latin America. The segment accounts for about 70% of the company's total segment revenue. It posted net revenue of $4.7 billion in Q1 FY 2021, falling 6.1% compared to the year-ago quarter. The segment reported operating income of $813.5 million, a 26.0% drop from the previous year. The Americas comprise about 64% of total segment operating income.


Starbucks' International segment includes company-owned and licensed store revenue and operating income in China, Japan, Asia Pacific, Europe, Middle East, and Africa. It comprises nearly 25% of total segment revenue. The segment posted $1.7 billion in net revenue in Q1 FY 2021, a 5.3% increase compared to the year-ago quarter. The International segment posted operating income of $274.8 million, down 0.4% from the same quarter a year ago. It accounts for about 22% of total operating income across all segments.

Channel Development

Starbucks' Channel Development segment includes branded roasted whole bean and ground coffees, including Seattle's Best Coffee; Starbucks- and Teavana-branded single-serve products; ready-to-drink beverages such as Frappuccino, Doubleshot, Refreshers, and Teavana iced tea; and other branded products sold worldwide outside of company-operated and licensed stores. The Channel Development segment comprises less than 6% of total segment revenue. Net revenue for the segment was $371.4 million, down 24.9% compared to the year-ago quarter. Operating income rose 3.0% to $180.8 million, comprising about 14% of total segment operating income.

Starbucks' Recent Developments

In its Q1 FY 2021 earnings press release, issued on January 26, 2021, Starbucks noted in a footnote that Chief Operating Officer (COO) Roz Brewer was leaving the company at the end of February to accept a position as chief executive officer (CEO) for another publicly traded company. Her chief operating responsibilities are being distributed to other members of Starbucks' existing leadership team.

On January 7, 2021, Starbucks announced that Patrick Grismer would be retiring from his position as executive vice president and chief financial officer (CFO), effective February 1, 2021. Rachel Ruggeri, senior vice president of Finance, Americas, was appointed to succeed Grismer.

Starbucks noted in its Q1 FY 2021 filings that it had announced during its previous fiscal year that it was implementing a restructuring plan to optimize its North America store portfolio. As part of that restructuring plan, the coffee chain expects to close approximately 800 stores in the U.S. and Canada.

How Starbucks Reports Diversity & Inclusiveness

As part of our effort to improve the awareness of the importance of diversity in companies, we offer investors a glimpse into the transparency of Starbucks and its commitment to diversity, inclusiveness, and social responsibility. We examined the data Starbucks releases to show you how it reports the diversity of its board and workforce to help readers make educated purchasing and investing decisions.

Below is a table of potential diversity measurements. It shows whether Starbucks discloses its data about the diversity of its board of directors, C-Suite, general management, and employees overall, as is marked with a ✔. It also shows whether Starbucks breaks down those reports to reveal the diversity of itself by race, gender, ability, veteran status, and LGBTQ+ identity.

Starbucks Diversity & Inclusiveness Reporting
  Race Gender Ability Veteran Status Sexual Orientation
Board of Directors          
General Management ✔ (U.S. Only) ✔ (U.S. Only)      
Employees ✔ (U.S. Only) ✔ (U.S. Only)