Record Net Revenues of $2.4 Billion
Earnings per Share Increased 18 Percent to $0.26
Starbucks Card Activations Increased 30 Percent
SEATTLE--(BUSINESS WIRE)--Jan. 31, 2007--Starbucks Corporation
(NASDAQ: SBUX) today announced financial results for its fiscal first
quarter for the period ended December 31, 2006.
Fiscal First Quarter 2007 Highlights:
Record quarterly retail store openings of 728 stores
Net revenues of $2.4 billion, an increase of 22 percent
Comparable store sales growth of six percent
Net earnings of $205 million, an increase of 18 percent
Earnings per share of $0.26, compared to $0.22 per share, an
increase of 18 percent
Record quarterly Starbucks Card activations of $287 million,
an increase of 30 percent
"Starbucks strong revenue and comparable store sales growth this
quarter clearly demonstrate the fundamental strength of our business.
The record number of store openings during the period puts our
aggressive 2007 store opening target well within reach," commented Jim
Donald, Starbucks president and ceo. "We will continue to extend the
Starbucks Experience by offering innovative beverage and food items,
and by expanding our presence to be where our customers want us."
Consolidated Financial and Operating Summary
Company-operated retail revenues increased 23 percent to $2.0
billion for the 13 weeks ended December 31, 2006, from $1.6 billion
for the same period in fiscal 2006. The increase was primarily
attributable to the opening of 1,177 new Company-operated retail
stores in the last 12 months and comparable store sales growth of six
percent for the quarter. The increase in comparable store sales was
due to a four percent increase in the number of customer transactions
and a two percent increase in the average value per transaction.
Specialty revenues increased 14 percent to $349 million for the 13
weeks ended December 31, 2006, compared to $306 million for the
corresponding period of fiscal 2006. Licensing revenues increased 16
percent to $254 million primarily due to higher product sales and
royalty revenues from the opening of 1,190 new licensed retail stores
in the last 12 months and, to a lesser extent, growth in the licensed
grocery and warehouse club business.
Foodservice and other revenues increased nine percent to $95
million primarily due to growth in new and existing accounts in the
U.S. foodservice business.
Cost of sales including occupancy costs increased to 41.8 percent
of total net revenues for the 13 weeks ended December 31, 2006,
compared to 40.2 percent in the corresponding 13-week period of fiscal
2006. This increase was primarily due to higher rent expense, a shift
in sales to higher cost products and increased distribution costs.
Store operating expenses as a percentage of Company-operated
retail revenues increased to 38.5 percent for the 13 weeks ended
December 31, 2006, from 38.2 percent for the corresponding period of
fiscal 2006. This increase was primarily due to higher payroll
expenditures from an increase in the average hourly wage rate for
retail store partners.
Other operating expenses (expenses associated with the Company's
specialty operations) increased to 20.8 percent of total specialty
revenues for the 13 weeks ended December 31, 2006, compared to 19.3
percent in the corresponding period of fiscal 2006. The increase was
primarily due to increased payroll-related expenditures to support the
growth in U.S. and International licensed stores operations.
Depreciation and amortization expenses increased to $110 million
for the 13 weeks ended December 31, 2006, compared to $91 million for
the corresponding period of fiscal 2006. The increase was primarily
due to the opening of 1,177 new Company-operated retail stores in the
last 12 months. As a percentage of total net revenues, depreciation
and amortization expenses were 4.7 percent for both periods.
General and administrative expenses decreased to $115 million for
the 13 weeks ended December 31, 2006, compared to $123 million for the
corresponding period of fiscal 2006. The decrease was primarily due to
higher charitable contributions in the prior year and higher
provisions for incentive compensation due to exceptional performance
in the prior year. These were partially offset by increased
payroll-related expenditures and higher professional fees in support
of continued global growth and systems infrastructure development in
the current year. As a percentage of total net revenues, general and
administrative expenses decreased to 4.9 percent for the 13 weeks
ended December 31, 2006, from 6.4 percent for the corresponding period
of fiscal 2006.
Income from equity investees decreased five percent to $19 million
for the 13 weeks ended December 31, 2006, compared to $20 million for
the corresponding period of fiscal 2006. The decrease was primarily
due to lower income as a result of lower sales volume for both the
Starbucks Ice Cream Partnership and the North American Coffee
Partnership, which produces ready-to-drink beverages, including
Starbucks bottled Frappuccino(R) coffee drinks and Starbucks
DoubleShot(R) espresso drinks.
Operating income increased 14 percent to $320 million for the 13
weeks ended December 31, 2006, compared to $280 million for the
corresponding period of fiscal 2006. Operating margin decreased to
13.6 percent of total net revenues for the 13 weeks ended December 31,
2006, compared to 14.5 percent for the corresponding period of fiscal
2006, primarily due to higher cost of sales including occupancy costs
and higher store operating expenses, partially offset by lower general
and administrative expenses.
Interest and other income, net, increased to $6.4 million for the
13 weeks ended December 31, 2006, compared to $0.3 million for the
corresponding period of fiscal 2006, primarily due to foreign exchange
gains in the current year compared to foreign exchange losses in the
prior year.
Income taxes for the 13 weeks ended December 31, 2006, resulted in
an effective tax rate of 37.2 percent, compared to 37.8 percent for
the corresponding period of fiscal 2006.
Net earnings for the 13 weeks ended December 31, 2006, increased
18 percent to $205 million from $174 million for the same period in
fiscal 2006. Earnings per share also increased by 18 percent to $0.26
for the 13 weeks ended December 31, 2006, compared to $0.22 per share
for the comparable period in fiscal 2006.
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
13 Weeks Ended 13 Weeks Ended
-------------------------------- ----------------
December January
December 31, January 1, % 31, 1,
2006 2006 Change 2006 2006
-------------------------------- ----------------
(in thousands, except per share
data)
As a % of total
net revenues
----------------
Net revenues:
Company-operated
retail $ 2,006,811 $ 1,627,983 23.3% 85.2% 84.2%
Specialty:
Licensing 253,922 219,150 15.9 10.8 11.3
Foodservice and
other 94,990 86,959 9.2 4.0 4.5
------------------------ ----------------
Total specialty 348,912 306,109 14.0 14.8 15.8
------------------------ ----------------
Total net revenues 2,355,723 1,934,092 21.8 100.0 100.0
Cost of sales
including
occupancy costs 984,823 778,038 41.8 40.2
Store operating
expenses (a) 771,967 622,166 32.8 32.2
Other operating
expenses (b) 72,538 59,148 3.0 3.0
Depreciation and
amortization
expenses 110,196 91,288 4.7 4.7
General and
administrative
expenses 115,228 123,325 4.9 6.4
------------------------ ----------------
Subtotal
operating
expenses 2,054,752 1,673,965 22.7 87.2 86.5
Income from equity
investees 18,753 19,720 0.8 1.0
------------------------ ----------------
Operating
income 319,724 279,847 14.2 13.6 14.5
Interest and other
income, net 6,439 348 0.2 0.0
------------------------ ----------------
Earnings before
income taxes 326,163 280,195 16.4 13.8 14.5
Income taxes(c) 121,211 106,039 5.1 5.5
------------------------ ----------------
Net earnings $ 204,952 $ 174,156 17.7% 8.7% 9.0%
======================== ================
Net earnings per
common share -
diluted $ 0.26 $ 0.22
========================
Weighted avg.
shares
outstanding -
diluted 782,764 792,949
========================
(a)As a percentage of related Company-operated retail revenues, store
operating expenses were 38.5 percent for the 13 weeks ended
December 31, 2006, and 38.2 percent for the 13 weeks ended
January 1, 2006.
(b)As a percentage of related total specialty revenues, other
operating expenses were 20.8 percent for the 13 weeks ended
December 31, 2006, and 19.3 percent for the 13 weeks ended January
1, 2006.
(c)The effective tax rates were 37.2 percent for the 13 weeks
ended December 31, 2006, and 37.8 percent for the 13 weeks ended
January 1, 2006.
Segment Results
Beginning in the fiscal fourth quarter of 2006, the Company
increased its reporting segments from two to three to include a Global
Consumer Products Group (CPG) segment in addition to the United States
and International segments. Additionally, with the 100% acquisition of
the Company's operations in Hawaii in fiscal 2006, and the shift in
internal management of this market to the United States, these
operations have been moved from the International segment into the
United States segment. Prior period segment results have been restated
to reflect these changes. The tables below present operating segment
results net of intersegment eliminations for the 13 weeks ended
December 31, 2006 (in thousands):
United States
13 Weeks Ended 13 Weeks Ended
------------------------------- --------------------
Dec. 31, Jan. 1, % Dec. 31, Jan. 1,
2006 2006 Change 2006 2006
------------------------------- --------------------
As a % of U.S. total
United States net revenues
--------------- --------------------
Net revenues:
Company-
operated
retail $ 1,660,263 $ 1,370,687 21.1% 89.3% 88.6%
Specialty:
Licensing 113,309 96,283 17.7 6.1 6.2
Foodservice
and other 86,327 80,371 7.4 4.6 5.2
------------------------ --------------------
Total
specialty 199,636 176,654 13.0 10.7 11.4
------------------------ --------------------
Total net
revenues 1,859,899 1,547,341 20.2 100.0 100.0
Cost of sales
including
occupancy
costs 731,121 587,446 39.3 38.0
Store operating
expenses 648,377 528,775 39.1 (1) 38.6 (1)
Other operating
expenses 52,125 44,107 26.1 (2) 25.0 (2)
Depreciation
and
amortization
expenses 81,363 67,684 4.4 4.4
General and
administrative
expenses 21,759 21,533 1.2 1.4
Income from
equity
investees - 124 0.0 0.0
------------------------ --------------------
Operating
income $ 325,154 $ 297,920 9.1% 17.5% 19.3%
======================== ====================
(1) Shown as a percentage of related Company-operated retail revenues.
(2) Shown as a percentage of related total specialty revenues.
United States total net revenues increased by $313 million, or 20
percent, to $1.9 billion for the 13 weeks ended December 31, 2006,
compared to $1.5 billion for the corresponding period of fiscal 2006.
United States Company-operated retail revenues increased by $290
million, or 21 percent, to $1.7 billion, primarily due to the opening
of 928 new Company-operated retail stores in the last 12 months and
comparable store sales growth of six percent for the quarter. The
increase in comparable store sales was due to a three percent increase
in the number of customer transactions and a three percent increase in
the average value per transaction.
Total United States specialty revenues increased by $23 million,
or 13 percent, to $200 million for the 13 weeks ended December 31,
2006, compared to $177 million in the corresponding period of fiscal
2006. United States licensing revenues increased 18 percent to $113
million from $96 million in fiscal 2006 primarily due to higher
product sales and royalty revenues as a result of opening 758 new
licensed retail stores in the last 12 months. United States
foodservice and other revenues increased by seven percent to $86
million, from $80 million in fiscal 2006, primarily due to growth in
new and existing foodservice accounts.
United States operating income increased by nine percent to $325
million for the 13 weeks ended December 31, 2006, from $298 million
for the same period in fiscal 2006. Operating margin decreased to 17.5
percent of related revenues from a record high 19.3 percent in the
corresponding period of fiscal 2006. The decrease was primarily due to
higher cost of sales including occupancy costs and higher store
operating expenses. Cost of sales including occupancy costs increased
primarily due to a shift in sales to higher cost products, higher rent
expense and increased distribution costs. Store operating expenses
increased primarily due to higher payroll expenditures from an
increase in the average hourly wage rate for retail store partners.
International
13 Weeks Ended 13 Weeks Ended
------------------------- -----------------
Dec. 31, Jan. 1, % Dec. 31, Jan. 1,
2006 2006 Change 2006 2006
------------------------- -----------------
As a % of
International
total net
International revenues
---------------------- -----------------
Net revenues:
Company-operated
retail $346,548 $257,296 34.7% 85.6% 84.0%
Specialty:
Licensing 49,864 42,309 17.9 12.3 13.8
Foodservice and
other 8,663 6,588 31.5 2.1 2.2
------------------ -----------------
Total specialty 58,527 48,897 19.7 14.4 16.0
------------------ -----------------
Total net revenues 405,075 306,193 32.3 100.0 100.0
Cost of sales
including occupancy
costs 200,111 145,428 49.4 47.5
Store operating
expenses 123,590 93,391 35.7 (1) 36.3 (1)
Other operating
expenses 14,149 10,440 24.2 (2) 21.4 (2)
Depreciation and
amortization expenses 20,465 15,009 5.1 4.9
General and
administrative
expenses 21,711 16,187 5.4 5.3
Income from equity
investees 8,024 7,778 2.0 2.5
------------------ -----------------
Operating income $ 33,073 $ 33,516 (1.3%) 8.2% 10.9%
================== =================
(1) Shown as a percentage of related Company-operated retail revenues.
(2) Shown as a percentage of related total specialty revenues.
International total net revenues increased by $99 million, or 32
percent, to $405 million for the 13 weeks ended December 31, 2006,
compared to $306 million for the corresponding period of fiscal 2006.
International Company-operated retail revenues increased by $89
million, or 35 percent, to $347 million, primarily due to the opening
of 249 new Company-operated retail stores in the last 12 months,
comparable store sales growth of eight percent for the quarter and
favorable foreign currency exchange for both the British pound
sterling and Canadian dollar. The increase in comparable store sales
resulted from a six percent increase in the number of customer
transactions coupled with a two percent increase in the average value
per transaction.
Total International specialty revenues increased by $10 million,
or 20 percent, to $59 million for the 13 weeks ended December 31,
2006, compared to $49 million in the corresponding period of fiscal
2006. The increase was primarily due to higher product sales and
royalty revenues from opening 432 licensed retail stores in the last
12 months and growth in new and existing foodservice accounts.
International operating income decreased slightly to $33 million
for the 13 weeks ended December 31, 2006, compared to $34 million in
the corresponding period of fiscal 2006. Operating margin decreased to
8.2 percent of related revenues from a record first quarter high of
10.9 percent in the corresponding period of fiscal 2006, primarily due
to higher cost of sales including occupancy costs. The increase in
cost of sales including occupancy costs was primarily due to prior
period accounting corrections totaling $3.4 million, and to rising
energy and fuel prices.
Global Consumer Products Group (CPG)
13 Weeks Ended 13 Weeks Ended
----------------------- ----------------
Dec. 31, Jan. 1, % Dec. 31, Jan. 1,
2006 2006 Change 2006 2006
---------------------- -----------------
As a % of CPG
total net
Global Consumer Products Group revenues
------------------------------ -----------------
Net revenues:
Specialty:
Licensing $90,749 $80,558 12.7% 100.0% 100.0%
---------------- -----------------
Total specialty 90,749 80,558 12.7 100.0 100.0
---------------- -----------------
Total net revenues 90,749 80,558 12.7 100.0 100.0
Cost of sales 53,591 45,164 59.1 56.1
Other operating expenses 6,264 4,601 6.9 5.7
Depreciation and amortization
expenses 22 34 0.0 0.0
Income from equity investees 10,729 11,818 11.8 14.7
---------------- -----------------
Operating income $41,601 $42,577 (2.3%) 45.8% 52.9%
================ =================
CPG total net revenues increased by $10 million, or 13 percent, to
$91 million for the 13 weeks ended December 31, 2006, compared to $81
million for the corresponding period of fiscal 2006. The increase was
primarily due to volume growth in both the U.S. and International
licensed grocery and warehouse club businesses.
CPG operating income decreased slightly to $42 million for the 13
weeks ended December 31, 2006, compared to $43 million for the
corresponding period of fiscal 2006. Operating margin decreased to
45.8 percent of related revenues, from 52.9 percent in fiscal 2006,
primarily due to higher cost of sales, lower income from the Company's
equity investees and higher other operating expenses. Cost of sales
increased primarily due to the timing of sales to the grocery channel.
Income from equity investees declined primarily due to decreased sales
volumes for the Starbucks Ice Cream Partnership as well as the North
American Coffee Partnership, which produces ready-to-drink beverages
including Starbucks bottled Frappuccino(R) coffee drinks and Starbucks
Doubleshot(R) espresso drinks. Other operating expenses increased
primarily due to higher marketing expenditures in support of the
development and expansion of the ready-to-drink beverages in the
Asia-Pacific region.
Unallocated Corporate
13 Weeks Ended 13 Weeks Ended
-------------------------- ----------------
Dec. 31, Jan. 1, % Dec. 31, Jan. 1,
2006 2006 Change 2006 2006
-------------------------- ----------------
As a % of total
Unallocated Corporate net revenues
--------------------------- ----------------
Depreciation and
amortization expenses $ 8,346 $ 8,561 0.4% 0.4%
General and administrative
expenses 71,758 85,605 3.0 4.5
--------- --------- ----------------
Operating loss $(80,104) $(94,166) 14.9% (3.4%) (4.9)%
========= ========= ================
Unallocated corporate expenses decreased to $80 million for the 13
weeks ended December 31, 2006, compared to $94 million in the
corresponding period of fiscal 2006. The decrease was primarily due to
higher charitable contributions in the prior year and higher
provisions for incentive compensation due to exceptional performance
in the prior year. These were partially offset by increased
payroll-related expenditures and higher professional fees in support
of continued global growth and systems infrastructure development in
the current year. Total unallocated corporate expenses as a percentage
of total net revenues was 3.4 percent for the 13 weeks ended December
31, 2006 and 4.9 percent for the 13 weeks ended January 1, 2006.
STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 31, October 1,
2006 2006
------------ -------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 270,873 $ 312,606
Short-term investments - available-for-sale
securities 103,184 87,542
Short-term investments - trading securities 62,413 53,496
Accounts receivable, net of allowances of
$4,558 and $3,827, respectively 227,823 224,271
Inventories 547,277 636,222
Prepaid expenses and other current assets 121,320 126,874
Deferred income taxes, net 96,646 88,777
------------ -------------
Total current assets 1,429,536 1,529,788
Long-term investments - available-for-sale
securities 23,280 5,811
Equity and other investments 224,918 219,093
Property, plant and equipment, net 2,396,801 2,287,899
Other assets 205,724 186,917
Other intangible assets 39,469 37,955
Goodwill 207,906 161,478
------------ -------------
TOTAL ASSETS $4,527,634 $ 4,428,941
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 275,691 $ 340,937
Accrued compensation and related costs 289,005 288,963
Accrued occupancy costs 68,033 54,868
Accrued taxes 173,949 94,010
Short-term borrowings 365,000 700,000
Other accrued expenses 209,146 224,154
Deferred revenue 422,648 231,926
Current portion of long-term debt 765 762
------------ -------------
Total current liabilities 1,804,237 1,935,620
Long-term debt 1,746 1,958
Other long-term liabilities 282,796 262,857
---------- -------------
Total liabilities 2,088,779 2,200,435
Shareholders' equity:
Common stock and additional paid-in capital
- authorized, 1,200,000,000 shares; issued
and outstanding, 757,372,182 and
756,602,055 shares, respectively,
(includes 3,394,184 common stock units in
both periods) 757 756
Other additional paid-in-capital 39,393 39,393
Retained earnings 2,349,918 2,151,084
Accumulated other comprehensive income 48,787 37,273
------------ -------------
Total shareholders' equity 2,438,855 2,228,506
------------ -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,527,634 $ 4,428,941
============ =============
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
13 Weeks Ended
------------------------
December 31, January 1,
2006 2006
------------ -----------
OPERATING ACTIVITIES:
Net earnings $ 204,952 $ 174,156
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 116,122 97,744
Provision for impairments and asset
disposals 3,469 3,751
Deferred income taxes, net (21,277) (26,291)
Equity in income of investees (9,020) (12,451)
Distributions from equity investees 18,845 5,769
Stock-based compensation 24,363 23,189
Tax benefit from exercise of stock options 3,422 110
Excess tax benefit from exercise of stock
options (29,618) (23,724)
Net amortization of premium on securities 213 545
Cash provided/(used) by changes in operating
assets and liabilities:
Inventories 91,293 93,348
Accounts payable (73,310) (8,180)
Accrued taxes 109,813 127,118
Deferred revenue 191,219 134,205
Other operating assets and liabilities (61,354) 19,573
------------ -----------
Net cash provided by operating activities 569,132 608,862
INVESTING ACTIVITIES:
Purchase of available-for-sale securities (148,362) (232,000)
Maturity of available-for-sale securities 115,165 14,734
Sale of available-for-sale securities - 76,504
Acquisition, net of cash acquired (47,304) -
Net additions to equity, other investments
and other assets (15,722) (4,893)
Net additions to property, plant and
equipment (161,270) (147,323)
------------ -----------
Net cash used by investing activities (257,493) (292,978)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock 65,530 44,412
Excess tax benefit from exercise of stock
options 29,618 23,724
Net repayments of revolving credit facility (335,000) (172,000)
Principal payments on long-term debt (209) (186)
Repurchase of common stock (115,288) (134,301)
------------ -----------
Net cash used by financing activities (355,349) (238,351)
Effect of exchange rate changes on cash and
cash equivalents 1,977 93
------------ -----------
Net increase/(decrease) in cash and cash
equivalents (41,733) 77,626
CASH AND CASH EQUIVALENTS:
Beginning of period 312,606 173,809
------------ -----------
End of the period $ 270,873 $ 251,435
============ ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the 13 weeks ended:
Interest $ 8,318 $ 2,918
Income taxes $ 40,570 $ 10,280
Fiscal First Quarter 2007 Store Data
The Company's store data for the periods presented are as follows:
Net stores opened
during the 13 Stores open as
weeks ended of
------------------- ----------------
Dec. 31, Jan. 1, Dec. 31, Jan. 1,
2006 2006 2006 2006
------------------- ----------------
United States:
Company-operated Stores(1) 282 164 6,010 5,082
Licensed Stores 223 198 3,391 2,633
------------------- ----------------
505 362 9,401 7,715
International:
Company-operated Stores (1) 76 60 1,511 1,262
Licensed Stores (1) 147 138 2,256 1,824
------------------- ----------------
223 198 3,767 3,086
------------------- ----------------
Total 728 560 13,168 10,801
=================== ================
(1) International store data has been adjusted for the acquisitions of
the Puerto Rico, Hawaii and Beijing operations by reclassifying
historical information from Licensed Stores to Company-operated
Stores. United States store data was also adjusted to align with
the Hawaii operations segment change by reclassifying historical
information from International Company-operated stores to the
United States.
Fiscal 2007 Targets
Looking ahead, Starbucks reaffirmed its fiscal 2007 targets:
-- Starbucks plans to open at least 2,400 new stores on a global
basis in fiscal 2007. In the United States, Starbucks plans to
open approximately 1,000 Company-operated locations and 700
licensed locations. In International markets, Starbucks plans
to open approximately 300 Company-operated stores and 400
licensed stores;
-- The Company is targeting total net revenue growth of
approximately 20 percent for the full year and comparable
store sales growth remains in the target range of three
percent to seven percent; and,
-- Starbucks continues to target earnings per share in the range
of $0.87 - $0.89 for fiscal 2007.
Starbucks will be holding a conference call today at 2:00 p.m.
Pacific Time, which will be hosted by Howard Schultz, chairman, Jim
Donald, president and ceo, and Michael Casey, 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. Pacific Time on Wednesday, February 7,
2007, by calling 1-800-642-1687, reservation number 4132389. 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. Pacific Time on Friday, March 2, 2007, 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 preceding 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 filed with the Securities and Exchange Commission on
December 14, 2006, as amended by Amendment No.1 to Annual Report on
Form 10-K/A filed on December 21, 2006, 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.
This release includes forward-looking statements about trends in
or expectations regarding: store openings, comparable store sales, net
revenue and earnings per share results. 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 performance and expansion plans,
fluctuations in U.S. and international economies and currencies, the
impact of initiatives by competitors, 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 October
1, 2006. The Company assumes no obligation to update any of these
forward-looking statements.
(C) 2007 Starbucks Coffee Company. All rights reserved.
CONTACT: Starbucks
Investor Relations:
JoAnn DeGrande, 206-318-7893
jdegrand@starbucks.com
or
Media:
Valerie O'Neil, 206-318-8953
voneil@starbucks.com
SOURCE: Starbucks Corporation
