Top line performance
After looking at the revenue drivers in the previous sections, let’s understand now how they have impacted Starbucks’ (SBUX) revenues. Starbucks reported revenues of $4.1 billion from three sources: company-operated stores, licensed stores, and consumer packaged goods, food services, and other, each representing 80%, 9%, and 11% of revenues, respectively. Following is a breakdown in terms of geographic segments.
The Americas segment
As noted earlier, 74% of Starbucks’ revenues come from its Americas segment. Looking at the graph above, we can see that this segment’s revenues grew 9%, to $3 billion from $2.7 billion in the corresponding quarter a year ago. McDonald’s (MCD) holds the biggest share in the United States in the fast-food segment and has given tough competition to other chains, including Starbucks and Dunkin Brands (DNKN), by introducing breakfast menus.
The EMEA and China/Asia Pacific segments
The Europe, Middle East, and Africa (or EMEA) segment and the China/Asia Pacific segment contributed 8% and 7%, respectively, to Starbucks’ revenues in the third quarter of 2014. In terms of growth, EMEA segment revenues grew 9%, to $322 million from $293 million year-over-year. The China/Asia Pacific segment grew 21%, to $310 million from $256 million year-over-year. China is also Yum! Brand’s (YUM) key market.
In the next section of this series, we’ll discuss channel development. Investors who would like to invest in the restaurant industry as a whole can invest in exchange-traded funds (or ETFs) like the Consumer Discretionary Select Sector Standard & Poors depositary receipt (or SPDR) fund (XLY).