Profitability Analysis between Starbucks and Dutch Bros
Sydney Stemley
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Accounting
Faculty Research Mentor: Huaibing Yu
Abstract:
Starbucks and Dutch Bros, two companies that sell similar products and distribute to similar markets, but are both in completely different spots in their business evolution. Starbucks is a corporation that has been established for more than 50 years and is one of the world’s leading coffee and food restaurants and is extremely profitable and very rarely alters its business operations. They maintain their products and offer just a few new options every year, and the amount of locations they open per year is very few. Their expansion has slowed over the years and they are in the maintaining portion of their overall growth. Dutch Bros however is on the completely different side, focusing on expanding and opening more locations all throughout the country and beyond. They offer a wide selection of drinks that allow for many unique creations as they attempt to reach younger consumers. They have witnessed tremendous growth in the last few years, and when compared to other coffee giants like Starbucks, it is interesting to see the difference between a more established brand versus a new and booming one. By creating a profitability analysis, the differences between the two are very profound as it reflects the way in which each are managed and operated as a whole. This analysis can help companies see the differences in profits between two types of companies at various stages of growth, and determine how they should continue operating their company.