Corporate History Of Starbucks Highlighting Some Of Their Significant

Accounting Article
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Questions
1. Briefly trace the corporate history of Starbucks highlighting some of their significant
events.
The Starbucks Corporation has to be in existence since the year 1971, with their first store opening in Seattle, Washington. The three partners who came up with the idea of starting Starbucks were university mates. Their inspiration came from Alfred Preet who taught them how to sell high-quality coffee types of equipment and coffee beans. The success journey of Starbucks began in the 1980’s when it began to make good profits from the sale of coffee beans. Within the same years, the company began its expansion strategy increasing their stores from one to around six by the year 1986. Today the corporation has many stores in all parts of the globe and till now it is known for the sale of high-quality coffee products and the exceptional customer services.
2. What was the net income and the earnings per share (EPS) on their common stock for
the past three years? Is any trend discernible?
Starbucks net income on the common stock has been increasing for the last three years. Recent reports indicate that it increased from 2.76 US dollars in 2015 to 2.82 US dollars in 2016 to around 2.88 US dollars in the year 2017. The trend shows that the profits have been increasing each year and the change is positive for the Corporation. Starbucks earning per share (EPS) has increased over the last three years with a significant margin. The change is noticeable because they have made sure that the cost of doing business in almost the stores is reasonable. For that reason, they are able to gain as much profit from the sale of their common stock.