There it is. I kept finding investor reports claiming the same 25 bil number as the net profit, but that’s just goofy if their actual bottom-line was under 5.
And that $11,000 figure is now about 6x too big. Meaning we’re talking about a less than a dollar raise. Not to even mention ebida is STILL more than bottom-line profits.
From their press release website, $36 biliion consolidated net revenue reported at a 16% profit margin for fiscal year 2023 leaves $5.76 billion after every expense has been deducted.
With equal distribution, that actually makes a $12,500 raise for 400,000 employees
First, that assumes the company makes no profit at all. Not a sustainable way to keep a company in business. If they go out of business, 400,000 people lose their jobs and a whole lot of them lose their health insurance. Starbucks is pretty well known for being generous with their benefits.
Second, wages are typically only about 2/3 or even less of the total compensation, and don’t account for the employer’s share of payroll taxes.
So figure that you think Starbucks should make half their current profits and give the other half to their employees. That puts it at $6250 per employee, which would likely translate to about $4000/ year before the employees’ portion of taxes, or about a $2/hour raise. Which would be great for employees making maybe $30k/year, but is not exactly going to vault them into the middle class.
