company-operated and 492 licensed net new store openings over the past year. This new store growth, along with a 7% increase
in comparable store sales, drove a 23% increase in total net revenues to $1.1 billion for fiscal 2014. Operating income grew
$51.3 million, or 16%, to $373 million compared to the prior year. Operating margin declined 200 basis points primarily
resulting from the shift in the composition of our store portfolio in this segment to more company-operated stores. We expect
this segment will become a more significant contributor to overall company profitability in the future. We look forward to
continued new store openings and the acquisition and integration of Starbucks Japan, including expanding our presence into
Starbucks Corporation 2014 Form 10-K 23
other channels in the Japan market, such as CPG, licensing and foodservice. We also expect that China will continue to grow
toward being one of our largest markets outside of the US.
Channel Development segment revenues grew 11% to $1.5 billion, in fiscal 2014, primarily due to increased sales of premium
single-serve products. Lower coffee costs was the primary contributor to the 630 basis point increase in operating margin for
fiscal 2014. As we continue to expand customer occasions outside of our retail stores, including growing our presence in the
premium single-serve category, we expect this segment to become a more significant contributor to future growth.