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To: Sawtooth who wrote (22954)4/5/2001 6:29:03 PM
From: pcstel  Read Replies (1) | Respond to of 29987
 
<OT><OT>Sawtooth... Starbucks managements figures are of course. Angled to show the best side of things..

For instance Net Revenues Increased 24%..

Yet, Retail Stores in operation increased 43% from the same period last year..

4,135 ending April 2001 vs. 2,885 ending April 2000..

So they opened 43% more stores which generated an increase of 24% in revenues..

So sure you can open 4 Starbucks stores in every mall.. But, the increase in stores does not net you 4 times the reveune.... So given this trend.. You have to open another 43% more stores by next April.. or 5913 stores total.. Which equals to almost 5 stores a day.. In order to achieve the same 24% increase in net revenues...

Also the 5% increase in SSS is pretty decieving.. It is sales of stores open 13 months or longer.. So every month.. They have about 120 stores they are adding to the calculation that they compare revunues of their FIRST MONTH IN BUSINESS, to the revenue figures after the have been established for 13 months.. So that segment has to show a "Very Large Percentage" increase.. So to average it out among all the Stores open 13 months or longer.. You are are probably seeing some of the older stores with FLAT or NEGATIVE GROWTH..

PCSTEL