The ratings are based on Starbucks Corp.'s leading market position and excellent brand recognition in the specialty coffee market in the U.S., as well as a history of strong cash flow generation. Weak top-line growth due to the U.S. recession tempers these strengths. Starbucks' aggressive expansion drove sales growth historically, with net revenues increasing 10% in 2008 after a 21% increase in 2007 and 22% growth in 2006. However, Standard&Poor's Ratings Services expects revenues to decline in fiscal 2009 as the company anticipates a net reduction of 465 company-owned stores in the U.S. and a net addition of about 70 company-owned stores internationally. Future store growth is likely to be focused internationally via licensed stores, with the company
