Revenue and EPS Growth Continues in Challenging Operating Environment
Sharpens Focus on Strategic Initiatives
U.S. Business Slows Pace of FY08 Store Openings: Reduced by 34
Percent from FY07
International Segment Delivers Strong Revenue and Operating Income
SEATTLE--(BUSINESS WIRE)--Jan. 30, 2008--Fiscal First Quarter 2008
Highlights:
-- Consolidated net revenues of $2.8 billion, a 17 percent
increase from Q1 of 2007
-- Operating margin contracted 160 basis points to 12.0 percent
-- Earnings per share of $0.28, compared to $0.26 per share in Q1
of 2007
-- Comparable store sales growth of one percent
Starbucks Corporation (NASDAQ:SBUX) today announced financial
results for its fiscal first quarter ended December 30, 2007.
Consolidated net revenues increased 17 percent to $2.8 billion for the
first quarter of 2008, compared to $2.4 billion for the first quarter
of 2007. For the 13-week period ended December 30, 2007, net earnings
totaled $208.1 million versus $205.0 million for the same period a
year ago, a two percent increase. The slight increase in net income
includes the negative impact of incremental interest expense as a
result of the company's inaugural senior notes offering during the
fourth quarter of fiscal 2007. Earnings per share for the quarter rose
eight percent to $0.28 from $0.26 in the prior year period.
"Over the coming months, our management team will focus on
building a long-term model to realize our transformation agenda, and
drive long-term shareholder value," said Howard Schultz, chairman,
president and ceo. "We will do that by being laser focused on
delivering what our customers want and expect, and providing our
partners with the tools to help them exceed our customers'
expectations. Our actions will dramatically change the business, which
will enable us to offer a renewed Starbucks Experience to our
customers, while systematically building the foundation for strong,
sustainable growth in fiscal 2009 and beyond."
Schultz continued, "With a keen discipline around execution and
profitability, we have already slowed the pace of store growth in the
U.S. to approximately 1,175 stores for this fiscal year, down from a
revised target of 1,600 stores, and increased the store opening target
in International markets to approximately 975 stores. By reducing the
number of openings, we expect to optimize our resources and
potentially reduce cannibalization of our existing stores."
Schultz went on to say, "We will unveil additional details of our
transformation plan, including bold innovations that will reassert our
coffee leadership, redefine the in-store experience and introduce core
brand-building initiatives, on March 19, 2008, at the company's Annual
Meeting of Shareholders. Given all the work underway, we view 2008 as
a year of refocus and renewal for Starbucks."
The company said that in light of the ongoing implementation of
its transformation agenda, and the continued macroeconomic weakness,
it expects low double digit EPS expansion for this fiscal year. "We
are confident that our actions will get us back on track in redefining
the customer experience and further expanding the differentiation
between us and others in the coffee business," commented Schultz. "In
addition, when Starbucks reports second quarter fiscal 2008 results on
April 30, 2008, we plan to provide longer-term financial targets by
which we and the financial community can measure our performance as we
grow our business."
In line with its announcement on January 7, 2008, Starbucks has
reduced its fiscal 2008 global net new store opening target to
approximately 2,150 stores, down from an adjusted 2,500 net new
stores. This includes the closure of around 100 underperforming stores
in the U.S. and the opening of approximately 75 additional net new
stores in International markets. Net new store openings are expected
to be approximately 650 company-operated locations and 525 licensed in
the United States and approximately 975 stores in international
markets. For 2009, Starbucks plans to open more than 1,000 stores
internationally and less than 1,000 locations in the United States,
approximately 500 of which will be company-operated stores.
Continued Solid Revenue Growth
The 17 percent growth in consolidated net revenues in the first
quarter 2008 was primarily driven by the U.S. business, which
contributed 77 percent of total net revenue. For the quarter, U.S.
total net revenues increased by $266.3 million, or 14 percent, to $2.1
billion driven by the opening of 1,077 company-operated retail stores
in the last 12 months. International total net revenues expanded 33
percent, or $135.7 million, to $540.8 million for the 13 weeks ended
December 30, 2007 as the company continued to expand and strengthen
its store presence in its 42 existing markets outside the U.S. The
increase in International total net revenues resulted primarily from
opening 285 new company-operated retail stores in the last 12 months,
favorable foreign currency exchange for the Canadian dollar and the
British pound sterling, and comparable store sales growth of five
percent. For the Global Consumer Products Group (CPG), total net
revenues increased by $9.9 million, or 11 percent, to $100.6 million
for the first quarter fiscal 2008, primarily due to increased
royalties and product sales in the international ready-to-drink
business.
Consolidated company-operated retail revenues increased 17 percent
to $2.4 billion in first quarter 2008, from $2.0 billion for the same
period in fiscal 2007, primarily driven by new store openings in the
U.S. and international markets. For the first quarter of fiscal 2008,
United States company-operated retail revenues increased 14 percent to
$1.9 billion, while International company-operated retail revenues
increased 33 percent to $461.2 million in the period.
In the last 12 months, 1,362 new company-operated retail stores
were opened, an increase of 16 percent over openings in the previous
12-month period. Company-operated store openings in the last 12 months
were comprised of 1,077 in the U.S. and 285 in international markets.
Consolidated comparable store sales grew one percent in the first
quarter, which included a two percent increase in the average value
per transaction and a one percent transaction decline. The softness in
consolidated comparable store sales growth was driven by the U.S.
business. For the first quarter, U.S. comparable store sales
contracted one percent, due to a three percent decline in transactions
partially offset by a two percent rise in the average value per
transaction, which included the impact of a price increase taken in
late July 2007. The International segment continued to show strength,
with comparable store sales growth for the first quarter of five
percent, with a three percent increase in transactions and a two
percent increase in the average value per transaction.
Specialty revenues in the first quarter 2008 increased 19 percent
to $416.1 million, driven by licensing revenues, which increased 20
percent to $304.8 million. The growth in licensing revenues resulted
from higher product sales and royalty revenues from the opening of
1,226 new licensed retail stores in the last 12 months, 690 of which
were in the U.S. and 536 in international markets, and 11 percent
revenue growth in the CPG segment, primarily due to increased
royalties and product sales in the international ready-to-drink
business.
Leveraging G&A Amid Higher Cost Environment
Cost of sales including occupancy costs increased 110 basis points
to 42.9 percent of total net revenues for the 13 weeks ended December
30, 2007, compared to 41.8 percent in the corresponding period in
fiscal 2007. The increase was primarily due to increased dairy costs
and a shift in sales to higher cost products.
Store operating expenses as a percentage of related
company-operated retail revenues increased 90 basis points to 39.4
percent in the first quarter 2008, from 38.5 percent for the prior
year period. The increase was primarily due to higher payroll
expenditures as a percentage of revenues in the U.S. segment, driven
by softer sales from U.S. company-operated stores and wage increases,
partially offset by the impact of labor optimization initiatives in
the stores.
Other operating expenses (expenses associated with the company's
specialty operations) rose 30 basis points to 20.6 percent of related
total specialty revenues for the 13 weeks ended December 30, 2007,
compared to 20.3 percent for the same period a year ago. The increase
in expense was primarily due to higher international payroll-related
expenditures as a percentage of related revenues in support of the
continued expansion of the segment into new and existing markets.
General and administrative expenses as a percentage of total net
revenues improved 50 basis points to 4.5 percent for the first quarter
2008, from 5.0 percent for the corresponding period of fiscal 2007.
The company continues to focus on leveraging its scale and
infrastructure, as well as implementing systematic changes that are
expected to better position Starbucks back-end infrastructure to
deliver more efficient service to the field.
Operating Income Impacted By Higher Costs in U.S. Business
Consolidated operating income increased four percent to $333.1
million for the 13 weeks ended December 30, 2007. Operating margin
contracted 160 basis points to 12.0 percent of total net revenues in
the first quarter, from 13.6 percent for the same period a year ago.
Higher cost of sales including occupancy costs and store operating
expenses as a percentage of total net revenues were only partially
offset by lower general and administrative expenses as a percentage of
revenues.
For first quarter fiscal 2008, United States operating income
declined by four percent to $310.9 million. Operating margin
contracted 290 basis points to 14.6 percent of related revenues from
17.5 percent in the corresponding period of fiscal 2007. The decrease
was driven by higher cost of sales including occupancy costs and
higher store operating expenses as a percentage of total net revenues,
partially offset by lower general and administrative expenses as a
percentage of revenues. Higher dairy costs contributed approximately
100 basis points to the decline.
International operating income grew 63 percent to $54.1 million
for the first quarter 2008. Operating margin increased 180 basis
points to 10.0 percent of related revenues from 8.2 percent in the
first quarter of fiscal 2007. The primary reasons for this improvement
were lower cost of sales including occupancy costs partially due to
lower leasing costs in the United Kingdom and improved leverage on
store operating expenses overall.
Operating income for the CPG segment increased to $50.6 million
for the 13 weeks ended December 30, 2007, a 22 percent increase over
first quarter 2007. Operating margin increased to 50.3 percent of
related revenues from 45.9 percent for the prior year period,
primarily due to a decrease in the cost of sales expense as a
percentage of revenues.
Capital Structure Aligned With Strategy
For the 13 weeks ended December 30, 2007, net cash flow from
operating activities totaled $807.6 million, compared to $678.4
million in the same period a year ago.
During the first quarter, the company repurchased a total of 12.2
million shares at a cost of $295 million, and had 1.3 million shares
remaining available for repurchase under the authorization in place at
the end of the period. On January 29, 2008, Starbucks Board of
Directors authorized the repurchase of up to 5 million additional
shares of the company's common stock.
Comments on Recent Test of $1 Brewed Coffee Short Cup
In response to recent inquiries about the test of a $1 brewed
coffee short cup, the company commented that Starbucks is built on
premium coffee and a premium experience. Schultz observed, "Similar to
other leading global consumer brands, we believe there are
opportunities to create segmentation, provide an entry point for new
customers, and generate trial in a way that will also maintain the
value of the core brand proposition we offer. It also recognizes the
economic pressures our customers are under. We intend to reaffirm our
position as the coffee authority and maintain our leadership position
while broadening our appeal. But this offering is just a test, and we
will be listening intently to customer feedback, as well as evaluating
whether such a product advances our business objectives, elevates
further the premium coffee experience, and creates value for us."
Conference Call
Starbucks will be holding a conference call today at 2:00 p.m.
PST, which will be hosted by Howard Schultz, chairman, president and
ceo, Martin Coles, chief operating officer, and Pete Bocian, executive
vice president and chief financial officer. The call will be broadcast
live over the Internet and can be accessed at the company's web site
address of http://investor.starbucks.com. A replay of the call will be
available via telephone through 5:30 p.m. PST on Wednesday, February
6, 2008, by calling 1-800-642-1687, reservation number 22248459. A
posting of speaker remarks and a replay of the call will also be
available via the Investor Relations page on Starbucks.com through
approximately 5:00 p.m. PST on Friday, February 29, 2008, at the
following URL: http://investor.starbucks.com.
The company's consolidated statements of earnings, operating
segment results, and other additional information have been provided
on the following pages in accordance with current year
classifications. This information should be reviewed in conjunction
with this press release. Please refer to the company's Annual Report
on Form 10-K for the fiscal year ended September 30, 2007 for
additional information.
About Starbucks
Starbucks Coffee Company provides an uplifting experience that
enriches people's lives one moment, one human being, one extraordinary
cup of coffee at a time. To share in the experience, visit
www.starbucks.com.
Forward-Looking Statements
This release includes forward-looking statements about certain
company initiatives and plans, as well as trends in or expectations
regarding net new store openings, capital expenditures and earnings
per share. These forward-looking statements are based on currently
available operating, financial and competitive information and are
subject to various risks and uncertainties. Actual future results and
trends may differ materially depending on a variety of factors
including, but not limited to, coffee, dairy and other raw material
prices and availability, successful execution of internal plans and
initiatives, fluctuations in U.S. and international economies and
currencies, the impact of competition, the effect of legal
proceedings, and other risks detailed in the company's filings with
the Securities and Exchange Commission, including the "Risk Factors"
section of Starbucks Annual Report on Form 10-K for the fiscal year
ended September 30, 2007. The company assumes no obligation to update
any of these forward-looking statements.
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
13 Weeks Ended 13 Weeks Ended
-------------------------- ---------------
Dec 30, Dec 31, % Dec 30, Dec 31,
2007 2006 Change 2007 2006
-------------------------- ---------------
(in millions, except per
share data)
As a % of total
net revenues
---------------
Net revenues:
Company-operated retail $2,351.5 $2,006.8 17.2% 85.0 % 85.2 %
Specialty:
Licensing 304.8 253.9 20.0 11.0 10.8
Foodservice and other 111.3 95.0 17.2 4.0 4.0
------------------- ---------------
Total specialty 416.1 348.9 19.3 15.0 14.8
------------------- ---------------
Total net revenues 2,767.6 2,355.7 17.5 100.0 100.0
Cost of sales including
occupancy costs 1,186.0 984.8 20.4 42.9 41.8
Store operating expenses(a) 927.3 772.0 20.1 33.5 32.8
Other operating expenses(b) 85.7 70.9 20.9 3.1 3.0
Depreciation and
amortization expenses 133.2 110.2 20.9 4.8 4.7
General and administrative
expenses 125.9 116.8 7.8 4.5 5.0
------------------- ---------------
Subtotal operating
expenses 2,458.1 2,054.7 19.6 88.8 87.2
Income from equity
investees 23.6 18.7 26.2 0.9 0.8
------------------- ---------------
Operating income 333.1 319.7 4.2 12.0 13.6
Interest income and other,
net 10.7 13.5 0.4 0.6
Interest expense (17.1) (7.0) (0.6) (0.3)
------------------- ---------------
Earnings before
income taxes 326.7 326.2 0.2 11.8 13.8
Income taxes(c) 118.6 121.2 4.3 5.1
------------------- ---------------
Net earnings $ 208.1 $ 205.0 1.5 7.5 % 8.7 %
=================== ===============
Net earnings per common
share - diluted $ 0.28 $ 0.26 7.7%
===================
Weighted avg. shares
outstanding - diluted 744.9 782.8
(a) As a percentage of related company-operated retail revenues, store
operating expenses were 39.4 percent for the 13 weeks ended
December 30, 2007, and 38.5 percent for the 13 weeks ended
December 31, 2006.
(b) As a percentage of related total specialty revenues, other
operating expenses were 20.6 percent for the 13 weeks ended
December 30, 2007, and 20.3 percent for the 13 weeks ended
December 31, 2006.
(c) The effective tax rates were 36.3 percent for the 13 weeks ended
December 30, 2007, and 37.2 percent for the 13 weeks ended
December 31, 2006.
Segment Results
The tables below present reportable segment results net of
intersegment eliminations (in millions):
------------------------ ----------------
United States Dec 30, Dec 31, % Dec 30, Dec 31,
2007 2006 Change 2007 2006
------------------------ ----------------
As a % of U.S.
total net
13 Weeks Ended revenues
---------------------------- ----------------
Net revenues:
Company-operated retail $1,890.3 $1,660.3 13.9 % 88.9% 89.3%
Specialty:
Licensing 137.9 113.3 21.7 6.5 6.1
Foodservice and other 98.0 86.3 13.6 4.6 4.6
----------------- ----------------
Total specialty 235.9 199.6 18.2 11.1 10.7
----------------- ----------------
Total net revenues 2,126.2 1,859.9 14.3 100.0 100.0
Cost of sales including
occupancy costs 872.9 731.1 19.4 41.1 39.3
Store operating expenses(a) 764.9 648.4 18.0 36.0 34.9
Other operating expenses(b) 59.0 52.2 13.0 2.8 2.8
Depreciation and
amortization expenses 98.4 81.4 20.9 4.6 4.4
General and administrative
expenses 20.5 21.7 (5.5) 1.0 1.2
----------------- ----------------
Total operating
expenses 1,815.7 1,534.8 18.3 85.4 82.5
Income from equity investees 0.4 - - -
----------------- ----------------
Operating income $ 310.9 $ 325.1 (4.4)% 14.6% 17.5%
================= ================
(a) As a percentage of related company-operated retail revenues, store
operating expenses were 40.5 percent for the 13 weeks ended
December 30, 2007, and 39.1 percent for the 13 weeks ended
December 31, 2006.
(b) As a percentage of related total specialty revenues, other
operating expenses were 25.0 percent for the 13 weeks ended
December 30, 2007, and 26.2 percent for the 13 weeks ended
December 31, 2006.
----------------------- ---------------
International Dec 30, Dec 31, % Dec 30, Dec 31,
2007 2006 Change 2007 2006
----------------------- ---------------
As a % of
International
total net
13 Weeks Ended revenues
------------------------------ ---------------
Net revenues:
Company-operated retail $461.2 $346.5 33.1 % 85.3 % 85.5 %
Specialty:
Licensing 66.3 49.9 32.9 12.3 12.3
Foodservice and other 13.3 8.7 52.9 2.5 2.1
--------------- ---------------
Total specialty 79.6 58.6 35.8 14.7 14.5
--------------- ---------------
Total net revenues 540.8 405.1 33.5 100.0 100.0
Cost of sales including
occupancy costs 260.0 200.1 29.9 48.1 49.4
Store operating expenses(a) 162.4 123.6 31.4 30.0 30.5
Other operating expenses(b) 20.8 14.1 47.5 3.8 3.5
Depreciation and amortization
expenses 25.7 20.5 25.4 4.8 5.1
General and administrative
expenses 29.9 21.7 37.8 5.5 5.4
--------------- ---------------
Total operating expenses 498.8 380.0 31.3 92.2 93.8
Income from equity investees 12.1 8.0 51.3 2.2 2.0
--------------- ---------------
Operating income $ 54.1 $ 33.1 63.4 % 10.0 % 8.2 %
=============== ===============
(a) As a percentage of related company-operated retail revenues, store
operating expenses were 35.2 percent for the 13 weeks ended
December 30, 2007, and 35.7 percent for the 13 weeks ended
December 31, 2006.
(b) As a percentage of related total specialty revenues, other
operating expenses were 26.1 percent for the 13 weeks ended
December 30, 2007, and 24.1 percent for the 13 weeks ended
December 31, 2006.
Global Consumer Products Group
(CPG)
----------------------- ---------------
Dec 30, Dec 31, % Dec 30, Dec 31,
2007 2006 Change 2007 2006
----------------------- ---------------
As a % of CPG
total net
13 Weeks Ended revenues
------------------------------ ---------------
Net revenues:
Specialty:
Licensing $100.6 $ 90.7 10.9 % 100.0 % 100.0 %
--------------- ---------------
Total specialty 100.6 90.7 10.9 100.0 100.0
--------------- ---------------
Cost of sales 53.1 53.6 (0.9) 52.8 59.1
Other operating expenses 5.9 4.6 28.3 5.9 5.1
General and administrative
expenses 2.1 1.6 31.3 2.1 1.8
--------------- ---------------
Total operating expenses 61.1 59.8 2.2 60.7 65.9
Income from equity investees 11.1 10.7 3.7 11.0 11.8
--------------- ---------------
Operating income $ 50.6 $ 41.6 21.6 % 50.3 % 45.9 %
=============== ===============
Unallocated Corporate
----------------------- ---------------
Dec 30, Dec 31, % Dec 30, Dec 31,
2007 2006 Change 2007 2006
----------------------- ---------------
As a % of total
13 Weeks Ended net revenues
------------------------------ ---------------
Depreciation and amortization
expenses $ 9.1 $ 8.3 9.6 % 0.3 % 0.4 %
General and administrative
expenses 73.4 71.8 2.2 2.7 3.0
--------------- ---------------
Operating loss $(82.5) $(80.1) 3.0 % (3.0)% (3.4)%
=============== ===============
STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
(unaudited)
December 30, September 30,
2007 2007
------------ -------------
ASSETS
Current assets:
Cash and cash equivalents $ 349.3 $ 281.3
Short-term investments - available-for-
sale securities 113.2 83.8
Short-term investments - trading
securities 72.9 73.6
Accounts receivable, net 316.2 287.9
Inventories 580.9 691.7
Prepaid expenses and other current assets 144.7 148.8
Deferred income taxes, net 160.4 129.4
------------ -------------
Total current assets 1,737.6 1,696.5
Long-term investments - available-for-sale
securities - 21.0
Equity and other investments 270.3 258.9
Property, plant and equipment, net 2,993.0 2,890.4
Other assets 247.0 219.4
Other intangible assets 42.4 42.1
Goodwill 216.1 215.6
------------ -------------
TOTAL ASSETS $ 5,506.4 $ 5,343.9
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Commercial paper and short-term
borrowings $ 529.5 $ 710.3
Accounts payable 340.8 390.8
Accrued compensation and related costs 341.9 332.3
Accrued occupancy costs 78.1 74.6
Accrued taxes 187.6 92.5
Other accrued expenses 261.8 257.4
Deferred revenue 512.7 296.9
Current portion of long-term debt 0.8 0.8
------------ -------------
Total current liabilities 2,253.2 2,155.6
Long-term debt 550.0 550.1
Other long-term liabilities 450.0 354.1
------------ -------------
Total liabilities 3,253.2 3,059.8
Shareholders' equity:
Common stock ($0.001 par value) -
authorized, 1,200 million shares; issued
and outstanding, 727.6 and 738.3 million
shares, respectively, (includes 3.4
common stock units in both periods) 0.7 0.7
Other additional paid-in-capital 39.4 39.4
Retained earnings 2,148.6 2,189.4
Accumulated other comprehensive income 64.5 54.6
------------ -------------
Total shareholders' equity 2,253.2 2,284.1
------------ -------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 5,506.4 $ 5,343.9
============ =============
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in millions)
13 Weeks Ended
--------------------
Dec 30, Dec 31,
2007 2006
----------- --------
OPERATING ACTIVITIES:
Net earnings $ 208.1 $ 205.0
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 139.9 116.1
Provision for impairments and asset disposals 4.9 3.5
Deferred income taxes, net (22.1) (21.3)
Equity in income of investees (11.0) (9.0)
Distributions from equity investees 9.2 18.8
Stock-based compensation 24.3 24.4
Tax benefit from exercise of stock options 1.1 3.4
Excess tax benefit from exercise of stock
options (3.0) (29.6)
Net amortization of (discount)/premium on
securities (0.1) 0.2
Cash provided/(used) by changes in operating
assets and liabilities:
Inventories 111.9 91.3
Accounts payable (42.6) (64.2)
Accrued taxes 124.6 109.8
Deferred revenue 215.6 191.2
Other operating assets and liabilities 46.8 38.8
----------- --------
Net cash provided by operating activities 807.6 678.4
INVESTING ACTIVITIES:
Purchase of available-for-sale securities (41.9) (148.4)
Maturity of available-for-sale securities - 115.2
Sale of available-for-sale securities 33.8 -
Acquisitions, net of cash acquired - (47.3)
Net purchases of equity, other investments and
other assets (2.1) (15.7)
Net additions to property, plant and equipment (263.6) (270.6)
----------- --------
Net cash used by investing activities (273.8) (366.8)
FINANCING ACTIVITIES:
Repayments of commercial paper (21,910.3) -
Proceeds from issuance of commercial paper 21,729.5 -
Repayments of short-term borrowings - (359.0)
Proceeds from short-term borrowings - 24.0
Proceeds from issuance of common stock 21.6 65.5
Excess tax benefit from exercise of stock
options 3.0 29.6
Principal payments on long-term debt (0.2) (0.2)
Repurchase of common stock (311.3) (115.2)
----------- --------
Net cash used by financing activities (467.7) (355.3)
Effect of exchange rate changes on cash and cash
equivalents 1.9 2.0
----------- --------
Net increase/(decrease) in cash and cash
equivalents 68.0 (41.7)
CASH AND CASH EQUIVALENTS:
Beginning of period 281.3 312.6
----------- --------
End of the period $ 349.3 $ 270.9
=========== ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest, net of capitalized interest $ 8.6 $ 8.3
Income taxes $ 16.4 $ 40.6
Fiscal First Quarter 2008 Store Data
The company's store data for the periods presented are as follows:
Net stores opened
during the
13 weeks ended Stores open as of
-----------------------------------
Dec 30, Dec 31, Dec 30, Dec 31,
2007 2006 2007 2006
----------------- -----------------
United States:
Company-operated Stores 294 282 7,087 6,010
Licensed Stores 190 223 4,081 3,391
----------------- -----------------
484 505 11,168 9,401
----------------- -----------------
International:
Company-operated Stores 84 76 1,796 1,511
Licensed Stores 177 147 2,792 2,256
----------------- -----------------
261 223 4,588 3,767
----------------- -----------------
Total 745 728 15,756 13,168
================= =================
(C) 2008 Starbucks Coffee Company. All rights reserved.
CONTACT: Starbucks Coffee Company
JoAnn DeGrande, 206-318-7118
investorrelations@starbucks.com
or
Valerie O'Neil, 206-318-7100
press@starbucks.com
http://www.businesswire.com/cnn/sbux.shtml
SOURCE: Starbucks Coffee Company
