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In fiscal year 2011, Starbucks Corporation
(SBUX) had revenue of $11.70 billion, gross profit of $6.75 billion, and net
income of $1.25 billion. Peet’s Coffee and Tea (PEET) had revenue of $372
million, gross profit of $72.7 million, and net income of $17.8 million.
- a. Compare the gross margins for Starbucks and Peet’s.
- b. Compare the net profit margins for Starbucks and
- c. Which firm was more profitable in 2011?