Starbucks Corporation
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees, complementary food, packaged coffees, single-serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, and Starbucks Reserve brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
What does it do?
Starbucks is the world's largest coffeehouse chain, with over 36,000 locations across 80+ countries. You've almost certainly walked past one — they sell lattes, frappuccinos, and breakfast sandwiches, and let you order ahead on an app. Beyond the physical stores, they also sell packaged coffee beans and ready-to-drink bottles in supermarkets. Think of it as a company that turned a daily cup of coffee into a global ritual.
Starbucks is under serious pressure right now — a rare thing for a brand this dominant. A new CEO, Brian Niccol (poached from Chipotle), took over in late 2024 to fix falling customer visits and rising complaints about long wait times and high prices. Investors are watching closely to see if he can pull off the same turnaround he achieved at Chipotle, which makes this a genuine 'prove it' moment for the stock.
How does it make money?
Starbucks generated $37.2 billion in revenue in its latest fiscal year, up from $36.2 billion the year before — about a 3% increase. The vast majority comes from its company-owned stores, where customers pay premium prices for drinks and food. A smaller but growing slice comes from licensing fees paid by partner-operated stores (like those inside airports or grocery stores) and from selling packaged coffee through supermarkets. The Starbucks Rewards loyalty programme is central to the business — members account for a huge share of US spending.
Why do investors care?
The bull story is simple: Starbucks has one of the most recognisable brands on earth and a loyal customer base that keeps coming back daily. China is the big long-term prize — it's Starbucks' second-largest market and still has enormous room to grow as the middle class expands. The turnaround under Brian Niccol is the near-term story: if he fixes the in-store experience and brings customers back, earnings could rebound sharply. What has to go right? Fewer customer complaints, faster service, and a stabilisation of traffic declines in both the US and China.
Deep Dive
MemberA full investor briefing on Starbucks Corporation — history, leadership, risks, and outlook.