Difficult Economic Times
Despite a difficult economic and operating environment, Starbucks reported solid financial performance in 2007. Net revenues reached $9.4 billion in 2007, and operating revenues rose by 18 % to $1.1 billion. Due to primarily to increasing costs of products and higher dairy cost, the cost of sells increased to 43.7 as a percentage of total net revenues for the 13 weeks ended September 30, 2007, compared to 41.7% in the corresponding 13-week period of fiscal 2006. At the close of the year, Jim Donald then president and CEO, stated, "Looking ahead, we believe opportunity for Starbucks, and we remain focused on delivering the highest quality beverage and legendary