Starbucks Corporation (NASDAQ:SBUX) tells a lie to avoid UK tax practices

  on Dec 03,2012 Posted in Business News ,Finance
 
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Starbucks Corporation (NASDAQ:SBUX) disclosed that it was taking into account changes to its UK tax practices, which enabled Coffee chain to generate billions in revenue while paying little in income taxes, after facing criticism from lawmakers, tax campaigners and the media.

Reuters examined the company’s accounts published in October revealing that the company had posted 13 years of losses at its UK unit, even as it told shareholders the operation was profitable and was one of the best performing of its overseas markets.

No corporation tax, a tax on a company’s income, has been paid the chain’s UK unit over the last three years for which data is available and has only paid 8.6 million pounds income tax since 1998, despite making 3 billion pounds ($4.8 billion) of sales.

Talking about the competitiveness, let’s have a glance over other contending firms of the sector. Shares of Panera Bread Co (NASDAQ:PNRA) fell -0.93% to settle at $160.50, Caribou Coffee Company, Inc. (NASDAQ:CBOU) moved down -2.11% to finish at $12.05 while Flanigan’s Enterprises, Inc. (NYSEAMEX:BDL) surged +2.19% to end the trading session at $7.48.

Last session’s traded volume of Starbucks Corporation (NASDAQ:SBUX) was 6.00 million shares as compared to its average volume of 8.72 million shares. Company changed hands within the price range of $51.04 – $52.01 in the last trading session.

Google’s earnings per share growth ratio this year was 10.61% compared with the 28.22% and 15.03% of Dunkin Brands Group, Inc. (DNKN) and McDonald’s Corp. (MCD) respectively. The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected growth. PEG of the firm remained 1.62% while return on assets was 17.78%.

The company generated revenue of $13.30 billion in the previous twelve months and had $1.38 billion in earnings. The stock posted a gross margin of +26.83% whereas operating margin was +15.02%.

 



 

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