Is Starbucks' revenue from company-operated stores sustainable?

**Starbucks' revenue from company-operated stores appears to be sustainable**, based on the following points: 1. **Resilience Amid Challenges**: Despite a 22% year-over-year decline in EPS and a 4% decline in global comparable store sales, Starbucks surpassed revenue expectations with a slight increase to $9.4 billion. This resilience indicates a strong operational base that can sustain revenue generation. 2. **Strategic Focus on Marketing**: Starbucks is shifting its focus from discounting to broader marketing strategies, which is likely to attract customers and sustain revenue growth. The company's investments in technology and marketing initiatives are aimed at enhancing the customer experience and expanding its customer base. 3. **Dividend Sustainability**: Starbucks has maintained a consistent dividend payment record since 2010, increasing its dividends each year. The company's dividend payout ratio is 0.60, suggesting that it retains a significant portion of its earnings for future growth and can sustain dividend payments. 4. **Market Position and Brand Loyalty**: Starbucks' global presence and consistent customer experience foster brand loyalty, providing a strong foundation for sustaining revenue from company-operated stores. The company's economic moat ensures its market position and competitive edge, which are crucial for sustaining revenue growth. 5. **Financial Health and Stability**: Starbucks' financial strength, as indicated by a cash-to-debt ratio of 0.12 and a financial strength rating of 5 out of 10, suggests that the company has a fair level of financial stability, which is essential for sustaining revenue generation and investing in growth opportunities. In conclusion, Starbucks' revenue from company-operated stores is sustainable due to the company's resilience, strategic focus on marketing, dividend sustainability, strong market position, and financial health. These factors collectively provide a solid foundation for the company to continue generating revenue from its owned stores.