Strong market position in specialty coffee retailing; Excellent national and international brand recognition; and History of strong cash flow generation. Operates in the competitive and fragmented retail/restaurant industry. The ratings on Seattle-based Starbucks Corp. are based on it leading market position and excellent brand recognition in the specialty coffee market, as well as a history of strong cash flow generation. These strengths are tempered by weak top-line growth compared with historical levels because of the still-sluggish U.S. economy. Starbucks' aggressive expansion drove sales growth historically, with net revenues increasing 10% in fiscal 2008 after a 21% increase in fiscal 2007, and 22% growth in fiscal 2006. However, revenues declined 6% in fiscal 2009 on a net reduction of 474 company-owned
