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How Is Starbucks Expanding Its Business in 2018?

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Jan. 30 2018, Updated 5:12 p.m. ET

Current operations

By the end of fiscal 1Q18, Starbucks (SBUX) operated 28,039 restaurants, which included 14,999 company-owned restaurants and 13,040 franchised restaurants. In the last four quarters, the overall unit count of Starbucks has increased 9.0%.

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Unit growth across segments

Americas: By the end of fiscal 1Q18, Starbucks’s Americas segment operated 16,837 restaurants with 9,525 company-owned restaurants and 7,312 franchised restaurants. In the last four quarters, this segment has increased the unit count of its company-owned restaurants by 431, while the unit count of franchised restaurants has increased by 548. 

In fiscal 1Q18, this segment added 112 company-owned restaurants and 166 franchised restaurants.

CAP (China/Asia-Pacific): This segment operated 4,682 company-owned restaurants and 3,097 franchised restaurants by the end of fiscal 1Q18. In the last four quarters, the company has increased the unit count of company-owned restaurants by 1,767 units, while the unit count of franchised restaurants has declined by 734 units.

On December 31, 2017, the company completed the acquisition of the remaining 50% holding in its East China business from Uni-President and President Chain Store Corporation, which increased the number of company-owned restaurants in China to more than 3,100. 

On December 5, 2017, the company opened its Starbucks Reserve Roastery in Shanghai, China, which features onsite baking by Rocco Princi, onsite roasting, and brewing of Starbucks Reserve coffees.

EMEA: By the end of fiscal 1Q18, the EMEA segment operated 503 company-owned restaurants and 2,594 franchised restaurants. In the last four quarters, Starbucks has added 362 franchised restaurants, while the unit count of company-owned restaurants has declined by two units. 

During fiscal 1Q18, the company opened one company-owned restaurant and 122 franchised restaurants.

Others: By the end of fiscal 1Q18, the Others segment operated 289 company-owned restaurants and 37 franchised restaurants. Compared to fiscal 1Q17, the company operated 67 fewer company-owned restaurants. The closure of its Teavana stores led to a decline in the unit count of company-owned restaurants.

Next, we’ll look at analysts’ revenue estimates for the next four quarters.

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