Starbucks FY2021 Revenue Mix: Beverages at 63%, Korea Stake Sale Values Business at $2.35B

This is an English adaptation of a FoodBud historical article originally published on March 13, 2022.

FoodBud reviewed Starbucks' FY2021 annual report to build a clearer view of the company's revenue structure and market footprint. Starbucks defined FY2021 as the period from September 27, 2020 to October 3, 2021.

FY2021 headline results

Starbucks reported FY2021 revenue of $29.06 billion, up 23.6% year on year. Net income attributable to the listed company was $4.2 billion, up 14.5% year on year.

Company-operated stores accounted for 85% of total revenue.

Revenue mix by product

In FY2021, beverages generated $18.3 billion, representing 63% of total revenue. Food generated $5.05 billion, or 17%.

In Q1 FY2022, covering October 4, 2021 to January 2, 2022, beverages accounted for 61% of revenue and food accounted for 18%, showing a relatively stable mix.

Revenue by market

In FY2021, Starbucks generated $20.38 billion in the U.S. market and $3.67 billion in China, equivalent to about RMB23.26 billion.

Outside the U.S. and China, Japan, Canada and the U.K. were the main international revenue contributors. Together, those three markets represented 79% of revenue from international markets excluding the U.S. and China.

FoodBud had previously reviewed Starbucks China's calendar-year 2021 revenue, which was close to the FY2021 figure: Starbucks China generated $3.62 billion in 2021.

Segment data

North America generated FY2021 revenue of $20.45 billion, including $18.74 billion from company-operated stores and $1.7 billion from licensed operations.

International markets generated total revenue of $6.92 billion, including $5.87 billion from company-operated stores and $980 million from licensed operations.

Channel development revenue was $1.59 billion.

Other revenue was $97.5 million, including smaller businesses such as Evolution Fresh.

Store structure

Starbucks' store base was close to evenly split between company-operated and licensed stores in FY2021: 51% company-operated and 49% licensed.

Among company-operated markets outside North America, China was the largest. Starbucks added 744 net new company-operated stores in FY2021, of which 654 came from China.

Canada saw the sharpest contraction, with 251 net store closures in FY2021. It is also the home market of Tim Hortons.

For company-operated stores, beverages accounted for 74% of revenue, food for 21%, and other products such as cups and ready-to-drink items for 5%.

For licensed stores outside North America, South Korea was the largest market. As of October 3, 2021, Starbucks had 6,965 licensed stores in North America and 1,611 stores in South Korea.

South Korea stake sale

During FY2021, Starbucks sold its equity interest in its South Korean joint venture and recorded a net gain of $865 million.

Starbucks sold its 50% stake in Starbucks Korea: 17.5% went to its Korean partner E-Mart Inc., and 32.5% went to Singapore sovereign wealth fund GIC Private Limited. The total transaction price was $1.175 billion, equivalent to about RMB7.45 billion.

That implied a valuation of $2.35 billion for Starbucks Korea, equivalent to about RMB14.9 billion.

In FY2021, licensed-store revenue accounted for 9% of Starbucks' total revenue.

Separately, in Q3 FY2019, Starbucks sold its Thailand retail business to Coffee Concepts Thailand, a joint venture between Singapore-listed Fraser and Neave and Hong Kong's Maxim's Caterers. Starbucks recorded a $600 million pre-tax gain from that transaction.

Note: transaction, valuation and financial figures above are historical figures from the periods cited.