Profit/Loss

These two companies, Starbucks and Dunkin Donuts, are in the food industry. They have achieved great success in the industry, thus allowing them to thrive further and even open additional branches throughout the country. Their profit and loss account over the last three years are compared below.

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In 2009, Dunkin Donuts registered a profit of $ 35 million. This was a significant rise in comparison the loss they had reported the previous year. In 2010, the company reported a slightly lower profit of $26.8 million. This could be attributed to a sharp rise in their operating income. In 2010, this statistic went up slightly to $ 26.9 million. This trend showed consistency in their profit making, although there was a small drop in the margin over the three years.

Starbucks is one of the most successful fast food businesses in the USA. This is clear from their financial statements. In 2009, the company reported a profit of $390 million. The trend continued till 2010 when the company reported a profit of $945.6 million. This was a tremendous increase which explained opening of the new restaurants across the country and a significant increasing in their customer base. In 2011, the profit level surpassed the billion mark. The company reported a profit of $ 1.245 billion.

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Starbucks clearly has the upper hand in profit rating. Over the last 5 years, the company has not reported a loss. It has grown in number of locations and customers. Dunkins Donuts is also relatively successful. Their profit statements as documented above are quite modest. There were no loss reports in the last three years. In terms of numbers, Starbucks is doing better than Dunkin Donuts. Though, one cannot assume that it is more successful in general. There are other factors that need to be considered to make such conclusion. These include such variable as size of the company among others. However, the profit margin with which Starbucks’ grew in the period under consideration, shows that they have superior business skills.

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