Earnings per Share Increases 19% to $0.43; Revenues Grow 13% to $3.3
Billion
U.S. Comparable Store Sales Grow 7%; Global Grows 6%
CPG Revenue Grows 45%, Driven by Increasing Share of Premium Coffee
Category
Company Lowers Q4 FY12 Earnings Outlook Due to Global Economic Conditions
SEATTLE--(BUSINESS WIRE)--Jul. 26, 2012--
Starbucks Corporation (NASDAQ: SBUX) today reported financial results
for its 13-week fiscal third quarter ended July 1, 2012.
Fiscal Third Quarter 2012 Highlights:
-
Total net revenues increased 13% to $3.3 billion
-
U.S. comparable store sales increased 7%; Global comparable store
sales increased 6%
-
Channel Development revenues increased 45% to $316 million
-
Operating income increased 22% to $492 million; operating margin
expanded 120 basis points to 14.9%
-
EPS increased 19% to $0.43 per share, compared to $0.36 per share in
Q3 FY11
-
Starbucks opened 231 net new stores globally, including its 600th
store in mainland China, and its first stores in Finland and Costa
Rica.
Q4 Fiscal 2012 Targets:
The company has updated its Q4 FY12 revenue and EPS targets as follows:
-
Revenue growth of 10% - 12%
-
Earnings per share of $0.44 to $0.45, representing growth of 19% - 22%
compared to Q4 FY11 non-GAAP EPS
Fiscal 2013 Targets:
The company has introduced its initial FY13 revenue and EPS targets as
follows:
-
Revenue growth of 10% - 13%
-
1,200 net new stores, driven by acceleration in the U.S. and China
-
Earnings per share of $2.04 to $2.14, representing growth of 15% - 20%
“Starbucks record Q3 results demonstrate the continued strength of our
global business and brand, the success of multiple, highly innovative
consumer packaged goods initiatives and continued acceleration of our
China and Asia-Pacific operations,” said Howard Schultz, chairman,
president and ceo. “Despite coming in short of our expectations I am
pleased with the increasing operating leverage we are seeing, the fact
that this was our 11th consecutive quarter of record results and the
fact that we achieved the results in the face of high legacy commodity
costs and challenging economic and consumer headwinds in key markets. I
am confident that we are operating with the discipline, flexibility and
customer centricity necessary to enable us to continue driving EPS
growth in excess of revenue growth over the long run,” Schultz added.
“While still representing earnings growth of approximately 20% over last
year’s fourth quarter, we have lowered our expectations for Q4 FY12
earnings per share to $0.44 to $0.45 to reflect the difficult economic
environment all global retailers are confronting today,” commented Troy
Alstead, cfo. “Nonetheless, we remain confident in the underlying
strength of our business, in the strategies we have in place for driving
sustained, profitable growth, and in our ability to again drive earnings
growth in the range of 15% - 20% in fiscal 2013.”
Third Quarter Fiscal 2012 Summary
|
|
|
|
|
Quarter Ended Jul 1, 2012
|
|
Comparable Store Sales(1)
|
|
|
|
Sales Growth
|
|
|
Change in Transactions
|
|
|
Change in Ticket
|
|
Consolidated
|
|
|
|
6%
|
|
|
5%
|
|
|
2%
|
|
Americas
|
|
|
|
7%
|
|
|
5%
|
|
|
2%
|
|
EMEA
|
|
|
|
0%
|
|
|
0%
|
|
|
0%
|
|
CAP
|
|
|
|
12%
|
|
|
8%
|
|
|
4%
|
|
(1) Includes only Starbucks company-operated stores open 13 months
or longer.
|
|
|
|
Operating Results
|
|
|
|
Quarter Ended
|
|
|
|
|
($ in millions, except per share amounts)
|
|
|
|
Jul 1, 2012
|
|
|
Jul 3, 2011
|
|
|
Change
|
|
Net New Stores
|
|
|
|
231
|
|
|
155
|
|
|
76
|
|
Revenues
|
|
|
|
$3,303.6
|
|
|
$2,932.2
|
|
|
13%
|
|
Operating Income
|
|
|
|
$491.6
|
|
|
$402.2
|
|
|
22%
|
|
Operating Margin
|
|
|
|
14.9%
|
|
|
13.7%
|
|
|
120 bps
|
|
EPS
|
|
|
|
$0.43
|
|
|
$0.36
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net revenues reached a third-quarter record $3.3 billion in
Q3 FY12, an increase of 13% over Q3 FY11. The increase was primarily due
to a 6% increase in global comparable stores sales and 45% revenue
growth in Channel Development. The 6% increase in comparable store sales
was comprised of a 5% increase in the number of transactions and a 2%
increase in average ticket.
Consolidated operating income increased 22% to $491.6 million in Q3
FY12, compared to $402.2 million for the same period a year ago.
Operating margin was 14.9% in Q3 FY12, compared to 13.7% in the same
period last year. Sales leverage more than offset the increase in
commodity costs, primarily coffee, which negatively impacted Q3 FY12
operating income and operating margin by approximately $38 million and
110 basis points, respectively, compared to the same period in the prior
year.
Q3 Americas Segment Results
|
|
|
|
|
Quarter Ended
|
|
|
|
|
($ in millions)
|
|
|
|
Jul 1, 2012
|
|
|
Jul 3, 2011
|
|
|
Change
|
|
Net New Stores
|
|
|
|
83
|
|
|
52
|
|
|
31
|
|
Revenues
|
|
|
|
$2,471.2
|
|
|
$2,275.9
|
|
|
9%
|
|
Operating Income
|
|
|
|
$512.1
|
|
|
$450.9
|
|
|
14%
|
|
Operating Margin
|
|
|
|
20.7%
|
|
|
19.8%
|
|
|
90 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues for the Americas segment were $2.5 billion in Q3 FY12, an
increase of 9% over Q3 FY11. The increase was primarily due to a 7%
increase in comparable store sales, including a 5% increase in the
number of transactions and a 2% increase in average ticket.
Additionally, licensed store revenue growth of approximately 24%
contributed to the Americas segment results.
Operating income increased to $512.1 million in Q3 FY12, compared to
$450.9 million for the same period a year ago. Operating margin
increased 90 basis points to 20.7% in Q3 FY12. The margin expansion was
due to increased sales leverage, partially offset by the increase in
commodity costs, primarily coffee.
Q3 EMEA Segment Results
|
|
|
|
|
Quarter Ended
|
|
|
|
|
($ in millions)
|
|
|
|
Jul 1, 2012
|
|
|
Jul 3, 2011
|
|
|
Change
|
|
Net New Stores
|
|
|
|
36
|
|
|
36
|
|
|
0
|
|
Revenues
|
|
|
|
$282.0
|
|
|
$257.9
|
|
|
9%
|
|
Operating Income
|
|
|
|
$2.6
|
|
|
$4.9
|
|
|
(47%)
|
|
Operating Margin
|
|
|
|
0.9%
|
|
|
1.9%
|
|
|
(100) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues for the EMEA segment were $282.0 million in Q3 FY12, an
increase of 9% over Q3 FY11. The increase was primarily due to
incremental revenues from the consolidation of the Switzerland and
Austria markets, partially offset by unfavorable foreign currency
exchange.
EMEA operating income was $2.6 million in Q3 FY12, compared to operating
income of $4.9 million for the same period a year ago. Operating margin
decreased 100 basis points to 0.9% compared to 1.9% in the prior-year
period. The margin contraction was primarily driven by higher costs
related to the transition to a consolidated food and dairy distribution
model in the UK.
Q3 China/Asia Pacific Segment Results
|
|
|
|
|
Quarter Ended
|
|
|
|
|
($ in millions)
|
|
|
|
Jul 1, 2012
|
|
|
Jul 3, 2011
|
|
|
Change
|
|
Net New Stores
|
|
|
|
112
|
|
|
67
|
|
|
45
|
|
Revenues
|
|
|
|
$181.8
|
|
|
$138.6
|
|
|
31%
|
|
Operating Income
|
|
|
|
$61.4
|
|
|
$44.9
|
|
|
37%
|
|
Operating Margin
|
|
|
|
33.8%
|
|
|
32.4%
|
|
|
140 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues for the China/Asia Pacific segment were $181.8 million in
Q3 FY12, an increase of 31% over Q3 FY11. The increase was due to
incremental revenues from 116 net new company-operated store openings
over the last 12 months, higher licensed stores revenue and a 12%
increase in comparable store sales. The 12% increase in comparable store
sales was the result of an 8% increase in the number of transactions and
a 4% increase in average ticket.
Operating income increased 37% to $61.4 million in Q3 FY12, compared to
$44.9 million for the same period a year ago. Operating margin increased
140 basis points to 33.8% in Q3 FY12 compared to 32.4% in the prior-year
period. The margin expansion was primarily driven by increased sales
leverage, partially offset by investment spending to support continued
growth in China.
Q3 Channel Development Segment Results
|
|
|
|
|
Quarter Ended
|
|
|
|
|
($ in millions)
|
|
|
|
Jul 1, 2012
|
|
|
Jul 3, 2011
|
|
|
Change
|
|
Revenues
|
|
|
|
$316.4
|
|
|
$218.4
|
|
|
45%
|
|
Operating Income
|
|
|
|
$86.5
|
|
|
$69.3
|
|
|
25%
|
|
Operating Margin
|
|
|
|
27.3%
|
|
|
31.7%
|
|
|
(440) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Channel Development net revenues were $316.4 million in Q3 FY12, an
increase of 45% over Q3 FY11. The increase was primarily due to sales of
Starbucks®- and Tazo®-branded K-Cup® portion packs and growth in
packaged coffee sales. The fiscal third quarter marks the first full
year-over-year comparison period under the direct distribution model.
Channel Development operating income was $86.5 million in Q3 FY12
compared to $69.3 million for the same period a year ago. Operating
margin was 27.3% in Q3 FY12 compared to 31.7% in the prior-year period.
The margin contraction was mainly due to higher commodity costs,
primarily coffee, which negatively impacted Q3 FY12 operating income and
operating margin by approximately $16 million and 500 basis points,
respectively, compared to the same period in the prior year.
YTD Financial Results
|
|
|
|
|
Three Quarters Ended Jul 1, 2012
|
|
Comparable Store Sales(1)
|
|
|
|
Sales Growth
|
|
|
Change in Transactions
|
|
|
Change in Ticket
|
|
Consolidated
|
|
|
|
8%
|
|
|
6%
|
|
|
1%
|
|
Americas
|
|
|
|
8%
|
|
|
6%
|
|
|
1%
|
|
EMEA
|
|
|
|
1%
|
|
|
0%
|
|
|
0%
|
|
CAP
|
|
|
|
17%
|
|
|
12%
|
|
|
4%
|
|
(1) Includes only Starbucks company-operated stores open 13 months
or longer.
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
($ in millions, except per share amounts)
|
|
|
|
Jul 1, 2012
|
|
|
Jul 3, 2011
|
|
|
Change
|
|
Net New Stores(1)
|
|
|
|
648
|
|
|
160
|
|
|
488
|
|
Revenues
|
|
|
|
$9,935.4
|
|
|
$8,668.7
|
|
|
15%
|
|
Operating Income
|
|
|
|
$1,477.9
|
|
|
$1,280.3
|
|
|
15%
|
|
Operating Margin
|
|
|
|
14.9%
|
|
|
14.8%
|
|
|
10 bps
|
|
EPS
|
|
|
|
$1.33
|
|
|
$1.15
|
|
|
16%
|
|
(1) Net new stores for the first three quarters of fiscal 2011
includes the closure of 228 licensed Seattle's Best Coffee locations
in Borders Bookstores.
|
|
|
Fiscal 2012 Targets
Starbucks has updated its Q4 FY12 revenue growth target to a range of
10% - 12%, and Q4 EPS to a range of $0.44 to $0.45.
Fiscal 2013 Targets
Starbucks has announced its fiscal 2013 targets as follows:
-
Starbucks plans to accelerate growth by opening approximately 1,200
net new stores globally, representing 20% growth over fiscal 2012.
-
Approximately 600 net new stores in the Americas, with the
majority of those in the U.S. Of the approximately 600 stores,
approximately half of the additions will be licensed stores.
-
Approximately 500 net new stores in China/Asia Pacific, with
licensed stores comprising approximately two-thirds of the new
additions. Of the approximately 500 stores, more than half will be
in China.
-
Approximately 100 net new stores in EMEA (Europe, Middle East,
Russia and Africa), with licensed stores comprising approximately
two-thirds of the new stores.
-
The company is targeting approximately 10% - 13% revenue growth,
driven by mid-single-digit comparable store sales growth,
approximately 1,200 net new store openings, and continued strong
growth in the Channel Development business.
-
Starbucks expects full-year consolidated operating margin improvement
of 50 to 100 basis points over FY12 results.
-
The company expects earnings per share of $2.04 to $2.14, representing
growth in the range of 15% - 20%, and consistent with its long-term
outlook.
-
Capital expenditures are expected to be approximately $1 billion for
the full year, with the 11% increase over FY12 spending attributable
to both new store growth, and an increase in production capacity to
support recently-announced initiatives.
-
The company expects a full-year tax rate of approximately 33%.
Company Updates
-
Starbucks acquired San Francisco-based Bay Bread, LLC and its La
Boulange® bakery brand, as well as hired renowned French baker Pascal
Rigo, to elevate core food offerings and build a premium, artisanal
bakery brand.
-
Evolution Fresh™ juices became available at select Starbucks locations
in the Seattle area, and over 600 Starbucks stores in southern
California.
-
The company introduced hand-crafted Starbucks Refreshers™ beverages in
select stores in 16 markets around the world, as well as Starbucks VIA
Refreshers™ beverages in the U.S.
-
Starbucks® K-Cup® packs became available in Starbucks retail stores
nationwide.
-
The company introduced its evening day-part program in select stores
in the Chicago, IL metro area, marking the first extension outside of
the Pacific Northwest. The company plans to extend this program to
select stores in Southern California and Atlanta by the end of the
year.
-
Seattle’s Best Coffee and Coinstar, Inc., announced an exclusive
agreement to roll out Coinstar’s new Rubi™ coffee kiosks in the
grocery, drug and mass merchant retail channels featuring Seattle’s
Best Coffee® beverages.
-
The company continued its growth plans in Latin America with two major
openings – its first store in Costa Rica, and its first Farmer Support
Center in South America located in Colombia.
-
Starbucks and SSP, a dedicated provider of food and beverage brands in
travel locations worldwide, opened the first Starbucks store in
Finland at Helsinki Airport.
-
The company broke ground on its first company-owned soluble product
manufacturing facility in Augusta, GA.
-
Starbucks appointed former Defense Secretary Robert Gates to its Board
of Directors.
-
The Board of Directors declared a cash dividend of $0.17 per share,
payable on August 24, 2012, to shareholders of record as of August 8,
2012.
Conference Call
Starbucks will be holding a conference call today at 2:00 p.m. Pacific
Time, which will be hosted by Howard Schultz, chairman, president and
ceo, John Culver, president, Starbucks Coffee China and Asia Pacific and
Troy Alstead, cfo. 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 9:00 p.m.
Pacific Time on Friday, July 27, 2012 by calling 1-855-859-2056,
reservation number 38993543. 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, August 24, 2012 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 October 2, 2011 for additional information.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting the highest quality arabica coffee in the
world. Today, with stores around the globe, the company is the premier
roaster and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we bring
the unique Starbucks Experience to life for every customer
through every cup. To share in the experience, please visit us in our
stores or online at www.starbucks.com.
Forward-Looking Statements
This release contains forward-looking statements relating to certain
company initiatives, strategies and plans, as well as trends in or
expectations regarding, earnings per share, revenues, shareholder value,
operational improvements and efficiencies, diversified business model,
changes to the organizational and leadership structures, business
momentum, growth and growth opportunities overall and of specific
businesses and markets, sales leverage, store traffic, average ticket,
operating margins, profits, capital expenditures, charges, comparable
store sales, store openings and closings, the strength, health and
potential of our business and brand, product innovations and store
experience, tax rate and commodity costs and their impact. These
forward-looking statements are based on currently available operating,
financial and competitive information and are subject to a number of
significant risks and uncertainties. Actual future results may differ
materially depending on a variety of factors including, but not limited
to, coffee, dairy and other raw material prices and availability, costs
associated with, and the successful execution of, the company’s
initiatives, strategies and plans, the acceptance of the company’s
products by our customers, 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 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 2, 2011. The company assumes no obligation to update any of
these forward-looking statements.
|
STARBUCKS CORPORATION
|
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
|
(unaudited, in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
%
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
2,615.6
|
|
|
|
$
|
2,417.3
|
|
|
|
8.2
|
%
|
|
|
|
79.2
|
%
|
|
|
82.4
|
%
|
|
|
Licensed stores
|
|
|
|
|
308.2
|
|
|
|
|
248.7
|
|
|
|
23.9
|
|
|
|
|
9.3
|
|
|
|
8.5
|
|
|
|
CPG, foodservice and other
|
|
|
|
|
379.8
|
|
|
|
|
266.2
|
|
|
|
42.7
|
|
|
|
|
11.5
|
|
|
|
9.1
|
|
|
Total net revenues
|
|
|
|
|
3,303.6
|
|
|
|
|
2,932.2
|
|
|
|
12.7
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales including occupancy costs
|
|
|
|
|
1,446.1
|
|
|
|
|
1,237.5
|
|
|
|
16.9
|
|
|
|
|
43.8
|
|
|
|
42.2
|
|
|
Store operating expenses
|
|
|
|
|
976.0
|
|
|
|
|
917.1
|
|
|
|
6.4
|
|
|
|
|
29.5
|
|
|
|
31.3
|
|
|
Other operating expenses
|
|
|
|
|
105.9
|
|
|
|
|
100.0
|
|
|
|
5.9
|
|
|
|
|
3.2
|
|
|
|
3.4
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
136.7
|
|
|
|
|
129.5
|
|
|
|
5.6
|
|
|
|
|
4.1
|
|
|
|
4.4
|
|
|
General and administrative expenses
|
|
|
|
|
199.0
|
|
|
|
|
190.2
|
|
|
|
4.6
|
|
|
|
|
6.0
|
|
|
|
6.5
|
|
|
|
|
Total operating expenses
|
|
|
|
|
2,863.7
|
|
|
|
|
2,574.3
|
|
|
|
11.2
|
|
|
|
|
86.7
|
|
|
|
87.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
51.7
|
|
|
|
|
44.3
|
|
|
|
16.7
|
|
|
|
|
1.6
|
|
|
|
1.5
|
|
|
|
|
Operating income
|
|
|
|
|
491.6
|
|
|
|
|
402.2
|
|
|
|
22.2
|
|
|
|
|
14.9
|
|
|
|
13.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and other, net
|
|
|
|
|
9.7
|
|
|
|
|
16.0
|
|
|
|
(39.4
|
)
|
|
|
|
0.3
|
|
|
|
0.5
|
|
|
Interest expense
|
|
|
|
|
(8.9
|
)
|
|
|
|
(8.5
|
)
|
|
|
4.7
|
|
|
|
|
(0.3
|
)
|
|
|
(0.3
|
)
|
|
|
|
Earnings before income taxes
|
|
|
|
|
492.4
|
|
|
|
|
409.7
|
|
|
|
20.2
|
|
|
|
|
14.9
|
|
|
|
14.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
159.1
|
|
|
|
|
129.9
|
|
|
|
22.5
|
|
|
|
|
4.8
|
|
|
|
4.4
|
|
|
Net earnings including noncontrolling interest
|
|
|
|
|
333.3
|
|
|
|
|
279.8
|
|
|
|
19.1
|
|
|
|
|
10.1
|
|
|
|
9.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interest
|
|
|
|
|
0.2
|
|
|
|
|
0.7
|
|
|
|
(71.4
|
)
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
Net earnings attributable to Starbucks
|
|
|
|
$
|
333.1
|
|
|
|
$
|
279.1
|
|
|
|
19.3
|
%
|
|
|
|
10.1
|
%
|
|
|
9.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share - diluted
|
|
|
|
$
|
0.43
|
|
|
|
$
|
0.36
|
|
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
Weighted avg. shares outstanding - diluted
|
|
|
|
|
776.8
|
|
|
|
|
771.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
|
|
$
|
0.17
|
|
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated stores
revenue
|
|
|
|
37.3
|
%
|
|
|
37.9
|
%
|
|
Effective tax rate including noncontrolling interest
|
|
|
|
32.3
|
%
|
|
|
31.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STARBUCKS CORPORATION
|
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
|
(unaudited, in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
%
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
7,868.6
|
|
|
|
$
|
7,162.1
|
|
|
|
9.9
|
%
|
|
|
|
79.2
|
%
|
|
|
82.6
|
%
|
|
|
Licensed stores
|
|
|
|
|
905.1
|
|
|
|
|
740.8
|
|
|
|
22.2
|
|
|
|
|
9.1
|
|
|
|
8.5
|
|
|
|
CPG, foodservice and other
|
|
|
|
|
1,161.7
|
|
|
|
|
765.8
|
|
|
|
51.7
|
|
|
|
|
11.7
|
|
|
|
8.8
|
|
|
Total net revenues
|
|
|
|
|
9,935.4
|
|
|
|
|
8,668.7
|
|
|
|
14.6
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales including occupancy costs
|
|
|
|
|
4,354.1
|
|
|
|
|
3,601.0
|
|
|
|
20.9
|
|
|
|
|
43.8
|
|
|
|
41.5
|
|
|
Store operating expenses
|
|
|
|
|
2,928.3
|
|
|
|
|
2,672.2
|
|
|
|
9.6
|
|
|
|
|
29.5
|
|
|
|
30.8
|
|
|
Other operating expenses
|
|
|
|
|
317.9
|
|
|
|
|
289.0
|
|
|
|
10.0
|
|
|
|
|
3.2
|
|
|
|
3.3
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
408.6
|
|
|
|
|
386.1
|
|
|
|
5.8
|
|
|
|
|
4.1
|
|
|
|
4.5
|
|
|
General and administrative expenses
|
|
|
|
|
597.4
|
|
|
|
|
557.0
|
|
|
|
7.3
|
|
|
|
|
6.0
|
|
|
|
6.4
|
|
|
|
|
Total operating expenses
|
|
|
|
|
8,606.3
|
|
|
|
|
7,505.3
|
|
|
|
14.7
|
|
|
|
|
86.6
|
|
|
|
86.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
148.8
|
|
|
|
|
116.9
|
|
|
|
27.3
|
|
|
|
|
1.5
|
|
|
|
1.3
|
|
|
|
|
Operating income
|
|
|
|
|
1,477.9
|
|
|
|
|
1,280.3
|
|
|
|
15.4
|
|
|
|
|
14.9
|
|
|
|
14.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and other, net
|
|
|
|
|
68.2
|
|
|
|
|
50.3
|
|
|
|
35.6
|
|
|
|
|
0.7
|
|
|
|
0.6
|
|
|
Interest expense
|
|
|
|
|
(26.2
|
)
|
|
|
|
(23.5
|
)
|
|
|
11.5
|
|
|
|
|
(0.3
|
)
|
|
|
(0.3
|
)
|
|
|
|
Earnings before income taxes
|
|
|
|
|
1,519.9
|
|
|
|
|
1,307.1
|
|
|
|
16.3
|
|
|
|
|
15.3
|
|
|
|
15.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
494.2
|
|
|
|
|
417.2
|
|
|
|
18.5
|
|
|
|
|
5.0
|
|
|
|
4.8
|
|
|
Net earnings including noncontrolling interest
|
|
|
|
|
1,025.7
|
|
|
|
|
889.9
|
|
|
|
15.3
|
|
|
|
|
10.3
|
|
|
|
10.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interest
|
|
|
|
|
0.6
|
|
|
|
|
2.5
|
|
|
|
(76.0
|
)
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
Net earnings attributable to Starbucks
|
|
|
|
$
|
1,025.1
|
|
|
|
$
|
887.4
|
|
|
|
15.5
|
%
|
|
|
|
10.3
|
%
|
|
|
10.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share - diluted
|
|
|
|
$
|
1.33
|
|
|
|
$
|
1.15
|
|
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
Weighted avg. shares outstanding - diluted
|
|
|
|
|
772.9
|
|
|
|
|
770.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated stores
revenue
|
|
|
|
37.2
|
%
|
|
|
37.3
|
%
|
|
Effective tax rate including noncontrolling interest
|
|
|
|
32.5
|
%
|
|
|
31.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Results
The tables below present reportable segment results net of intersegment
eliminations (in millions):
|
Americas
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
%
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of Americas
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
2,256.6
|
|
|
$
|
2,102.6
|
|
|
7.3
|
%
|
|
|
|
91.3
|
%
|
|
|
92.4
|
%
|
|
|
Licensed stores
|
|
|
|
|
208.3
|
|
|
|
167.5
|
|
|
24.4
|
|
|
|
|
8.4
|
|
|
|
7.4
|
|
|
|
Foodservice and other
|
|
|
|
|
6.3
|
|
|
|
5.8
|
|
|
8.6
|
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
Total net revenues
|
|
|
|
|
2,471.2
|
|
|
|
2,275.9
|
|
|
8.6
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales including occupancy costs
|
|
|
|
|
965.1
|
|
|
|
880.8
|
|
|
9.6
|
|
|
|
|
39.1
|
|
|
|
38.7
|
|
|
Store operating expenses
|
|
|
|
|
858.1
|
|
|
|
813.3
|
|
|
5.5
|
|
|
|
|
34.7
|
|
|
|
35.7
|
|
|
Other operating expenses
|
|
|
|
|
20.2
|
|
|
|
18.9
|
|
|
6.9
|
|
|
|
|
0.8
|
|
|
|
0.8
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
97.2
|
|
|
|
96.3
|
|
|
0.9
|
|
|
|
|
3.9
|
|
|
|
4.2
|
|
|
General and administrative expenses
|
|
|
|
|
18.5
|
|
|
|
15.7
|
|
|
17.8
|
|
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
|
Total operating expenses
|
|
|
|
|
1,959.1
|
|
|
|
1,825.0
|
|
|
7.3
|
|
|
|
|
79.3
|
|
|
|
80.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
0.0
|
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
|
Operating income
|
|
|
|
$
|
512.1
|
|
|
$
|
450.9
|
|
|
13.6
|
%
|
|
|
|
20.7
|
%
|
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated stores
revenue
|
|
|
|
38.0
|
%
|
|
|
38.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
6,782.9
|
|
|
$
|
6,253.4
|
|
|
8.5
|
%
|
|
|
|
91.4
|
%
|
|
|
92.4
|
%
|
|
|
Licensed stores
|
|
|
|
|
623.6
|
|
|
|
498.2
|
|
|
25.2
|
|
|
|
|
8.4
|
|
|
|
7.4
|
|
|
|
Foodservice and other
|
|
|
|
|
17.9
|
|
|
|
17.2
|
|
|
4.1
|
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
Total net revenues
|
|
|
|
|
7,424.4
|
|
|
|
6,768.8
|
|
|
9.7
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales including occupancy costs
|
|
|
|
|
2,913.4
|
|
|
|
2,602.3
|
|
|
12.0
|
|
|
|
|
39.2
|
|
|
|
38.4
|
|
|
Store operating expenses
|
|
|
|
|
2,570.3
|
|
|
|
2,378.9
|
|
|
8.0
|
|
|
|
|
34.6
|
|
|
|
35.1
|
|
|
Other operating expenses
|
|
|
|
|
59.4
|
|
|
|
55.5
|
|
|
7.0
|
|
|
|
|
0.8
|
|
|
|
0.8
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
291.4
|
|
|
|
292.5
|
|
|
(0.4
|
)
|
|
|
|
3.9
|
|
|
|
4.3
|
|
|
General and administrative expenses
|
|
|
|
|
53.7
|
|
|
|
43.1
|
|
|
24.6
|
|
|
|
|
0.7
|
|
|
|
0.6
|
|
|
|
|
Total operating expenses
|
|
|
|
|
5,888.2
|
|
|
|
5,372.3
|
|
|
9.6
|
|
|
|
|
79.3
|
|
|
|
79.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
2.1
|
|
|
|
1.6
|
|
|
31.3
|
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
|
Operating income
|
|
|
|
$
|
1,538.3
|
|
|
$
|
1,398.1
|
|
|
10.0
|
%
|
|
|
|
20.7
|
%
|
|
|
20.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated stores
revenue
|
|
|
|
37.9
|
%
|
|
|
38.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
%
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of EMEA
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
237.1
|
|
|
$
|
221.7
|
|
|
6.9
|
%
|
|
|
|
84.1
|
%
|
|
|
86.0
|
%
|
|
|
Licensed stores
|
|
|
|
|
36.8
|
|
|
|
29.8
|
|
|
23.5
|
|
|
|
|
13.0
|
|
|
|
11.6
|
|
|
|
Foodservice
|
|
|
|
|
8.1
|
|
|
|
6.4
|
|
|
26.6
|
|
|
|
|
2.9
|
|
|
|
2.5
|
|
|
Total net revenues
|
|
|
|
|
282.0
|
|
|
|
257.9
|
|
|
9.3
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales including occupancy costs
|
|
|
|
|
149.8
|
|
|
|
133.1
|
|
|
12.5
|
|
|
|
|
53.1
|
|
|
|
51.6
|
|
|
Store operating expenses
|
|
|
|
|
88.2
|
|
|
|
82.1
|
|
|
7.4
|
|
|
|
|
31.3
|
|
|
|
31.8
|
|
|
Other operating expenses
|
|
|
|
|
8.4
|
|
|
|
9.0
|
|
|
(6.7
|
)
|
|
|
|
3.0
|
|
|
|
3.5
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
14.3
|
|
|
|
12.4
|
|
|
15.3
|
|
|
|
|
5.1
|
|
|
|
4.8
|
|
|
General and administrative expenses
|
|
|
|
|
18.7
|
|
|
|
18.2
|
|
|
2.7
|
|
|
|
|
6.6
|
|
|
|
7.1
|
|
|
|
|
Total operating expenses
|
|
|
|
|
279.4
|
|
|
|
254.8
|
|
|
9.7
|
|
|
|
|
99.1
|
|
|
|
98.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
0.0
|
|
|
|
1.8
|
|
|
(100.0
|
)
|
|
|
|
0.0
|
|
|
|
0.7
|
|
|
|
|
Operating income
|
|
|
|
$
|
2.6
|
|
|
$
|
4.9
|
|
|
(46.9
|
)%
|
|
|
|
0.9
|
%
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated stores
revenue
|
|
|
|
37.2
|
%
|
|
|
37.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
735.0
|
|
|
$
|
655.1
|
|
|
12.2
|
%
|
|
|
|
85.7
|
%
|
|
|
86.6
|
%
|
|
|
Licensed stores
|
|
|
|
|
99.1
|
|
|
|
80.9
|
|
|
22.5
|
|
|
|
|
11.6
|
|
|
|
10.7
|
|
|
|
Foodservice
|
|
|
|
|
23.4
|
|
|
|
20.7
|
|
|
13.0
|
|
|
|
|
2.7
|
|
|
|
2.7
|
|
|
Total net revenues
|
|
|
|
|
857.5
|
|
|
|
756.7
|
|
|
13.3
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales including occupancy costs
|
|
|
|
|
444.2
|
|
|
|
377.4
|
|
|
17.7
|
|
|
|
|
51.8
|
|
|
|
49.9
|
|
|
Store operating expenses
|
|
|
|
|
274.0
|
|
|
|
236.3
|
|
|
16.0
|
|
|
|
|
32.0
|
|
|
|
31.2
|
|
|
Other operating expenses
|
|
|
|
|
26.0
|
|
|
|
24.9
|
|
|
4.4
|
|
|
|
|
3.0
|
|
|
|
3.3
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
42.8
|
|
|
|
37.6
|
|
|
13.8
|
|
|
|
|
5.0
|
|
|
|
5.0
|
|
|
General and administrative expenses
|
|
|
|
|
54.1
|
|
|
|
48.7
|
|
|
11.1
|
|
|
|
|
6.3
|
|
|
|
6.4
|
|
|
|
|
Total operating expenses
|
|
|
|
|
841.1
|
|
|
|
724.9
|
|
|
16.0
|
|
|
|
|
98.1
|
|
|
|
95.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
0.3
|
|
|
|
6.0
|
|
|
(95.0
|
)
|
|
|
|
0.0
|
|
|
|
0.8
|
|
|
|
|
Operating income
|
|
|
|
$
|
16.7
|
|
|
$
|
37.8
|
|
|
(55.8
|
)%
|
|
|
|
1.9
|
%
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated stores
revenue
|
|
|
|
37.3
|
%
|
|
|
36.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China/Asia Pacific (CAP)
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
%
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of CAP
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
121.9
|
|
|
$
|
93.0
|
|
|
31.1
|
%
|
|
|
|
67.1
|
%
|
|
|
67.1
|
%
|
|
|
Licensed stores
|
|
|
|
|
59.9
|
|
|
|
45.6
|
|
|
31.4
|
|
|
|
|
32.9
|
|
|
|
32.9
|
|
|
Total net revenues
|
|
|
|
|
181.8
|
|
|
|
138.6
|
|
|
31.2
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales including occupancy costs
|
|
|
|
|
91.5
|
|
|
|
69.7
|
|
|
31.3
|
|
|
|
|
50.3
|
|
|
|
50.3
|
|
|
Store operating expenses
|
|
|
|
|
29.7
|
|
|
|
21.7
|
|
|
36.9
|
|
|
|
|
16.3
|
|
|
|
15.7
|
|
|
Other operating expenses
|
|
|
|
|
11.3
|
|
|
|
10.3
|
|
|
9.7
|
|
|
|
|
6.2
|
|
|
|
7.4
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
5.8
|
|
|
|
4.6
|
|
|
26.1
|
|
|
|
|
3.2
|
|
|
|
3.3
|
|
|
General and administrative expenses
|
|
|
|
|
12.2
|
|
|
|
10.9
|
|
|
11.9
|
|
|
|
|
6.7
|
|
|
|
7.9
|
|
|
|
|
Total operating expenses
|
|
|
|
|
150.5
|
|
|
|
117.2
|
|
|
28.4
|
|
|
|
|
82.8
|
|
|
|
84.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
30.1
|
|
|
|
23.5
|
|
|
28.1
|
|
|
|
|
16.6
|
|
|
|
17.0
|
|
|
|
|
Operating income
|
|
|
|
$
|
61.4
|
|
|
$
|
44.9
|
|
|
36.7
|
%
|
|
|
|
33.8
|
%
|
|
|
32.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated stores
revenue
|
|
|
|
24.4
|
%
|
|
|
23.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
350.7
|
|
|
$
|
253.6
|
|
|
38.3
|
%
|
|
|
|
67.0
|
%
|
|
|
64.8
|
%
|
|
|
Licensed stores
|
|
|
|
|
172.6
|
|
|
|
137.5
|
|
|
25.5
|
|
|
|
|
33.0
|
|
|
|
35.2
|
|
|
Total net revenues
|
|
|
|
|
523.3
|
|
|
|
391.1
|
|
|
33.8
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales including occupancy costs
|
|
|
|
|
262.7
|
|
|
|
198.3
|
|
|
32.5
|
|
|
|
|
50.2
|
|
|
|
50.7
|
|
|
Store operating expenses
|
|
|
|
|
84.0
|
|
|
|
57.0
|
|
|
47.4
|
|
|
|
|
16.1
|
|
|
|
14.6
|
|
|
Other operating expenses
|
|
|
|
|
32.4
|
|
|
|
26.2
|
|
|
23.7
|
|
|
|
|
6.2
|
|
|
|
6.7
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
16.4
|
|
|
|
13.2
|
|
|
24.2
|
|
|
|
|
3.1
|
|
|
|
3.4
|
|
|
General and administrative expenses
|
|
|
|
|
29.6
|
|
|
|
24.1
|
|
|
22.8
|
|
|
|
|
5.7
|
|
|
|
6.2
|
|
|
|
|
Total operating expenses
|
|
|
|
|
425.1
|
|
|
|
318.8
|
|
|
33.3
|
|
|
|
|
81.2
|
|
|
|
81.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
90.7
|
|
|
|
62.3
|
|
|
45.6
|
|
|
|
|
17.3
|
|
|
|
15.9
|
|
|
|
|
Operating income
|
|
|
|
$
|
188.9
|
|
|
$
|
134.6
|
|
|
40.3
|
%
|
|
|
|
36.1
|
%
|
|
|
34.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated stores
revenue
|
|
|
|
24.0
|
%
|
|
|
22.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Channel Development
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
%
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of Channel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPG
|
|
|
|
$
|
232.6
|
|
|
$
|
142.7
|
|
|
63.0
|
%
|
|
|
|
73.5
|
%
|
|
|
65.3
|
%
|
|
|
Foodservice
|
|
|
|
|
83.8
|
|
|
|
75.7
|
|
|
10.7
|
|
|
|
|
26.5
|
|
|
|
34.7
|
|
|
Total net revenues
|
|
|
|
|
316.4
|
|
|
|
218.4
|
|
|
44.9
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
201.1
|
|
|
|
128.0
|
|
|
57.1
|
|
|
|
|
63.6
|
|
|
|
58.6
|
|
|
Other operating expenses
|
|
|
|
|
47.8
|
|
|
|
38.2
|
|
|
25.1
|
|
|
|
|
15.1
|
|
|
|
17.5
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
0.3
|
|
|
|
0.5
|
|
|
(40.0
|
)
|
|
|
|
0.1
|
|
|
|
0.2
|
|
|
General and administrative expenses
|
|
|
|
|
1.9
|
|
|
|
2.0
|
|
|
(5.0
|
)
|
|
|
|
0.6
|
|
|
|
0.9
|
|
|
|
|
Total operating expenses
|
|
|
|
|
251.1
|
|
|
|
168.7
|
|
|
48.8
|
|
|
|
|
79.4
|
|
|
|
77.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
21.2
|
|
|
|
19.6
|
|
|
8.2
|
|
|
|
|
6.7
|
|
|
|
9.0
|
|
|
|
|
Operating income
|
|
|
|
$
|
86.5
|
|
|
$
|
69.3
|
|
|
24.8
|
%
|
|
|
|
27.3
|
%
|
|
|
31.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPG
|
|
|
|
$
|
717.1
|
|
|
$
|
391.1
|
|
|
83.4
|
%
|
|
|
|
73.6
|
%
|
|
|
63.3
|
%
|
|
|
Foodservice
|
|
|
|
|
256.6
|
|
|
|
227.2
|
|
|
12.9
|
|
|
|
|
26.4
|
|
|
|
36.7
|
|
|
Total net revenues
|
|
|
|
|
973.7
|
|
|
|
618.3
|
|
|
57.5
|
|
|
|
|
100.0
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
626.5
|
|
|
|
347.9
|
|
|
80.1
|
|
|
|
|
64.3
|
|
|
|
56.3
|
|
|
Other operating expenses
|
|
|
|
|
147.3
|
|
|
|
104.8
|
|
|
40.6
|
|
|
|
|
15.1
|
|
|
|
16.9
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
1.0
|
|
|
|
1.9
|
|
|
(47.4
|
)
|
|
|
|
0.1
|
|
|
|
0.3
|
|
|
General and administrative expenses
|
|
|
|
|
6.6
|
|
|
|
4.7
|
|
|
40.4
|
|
|
|
|
0.7
|
|
|
|
0.8
|
|
|
|
|
Total operating expenses
|
|
|
|
|
781.4
|
|
|
|
459.3
|
|
|
70.1
|
|
|
|
|
80.3
|
|
|
|
74.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
55.4
|
|
|
|
48.5
|
|
|
14.2
|
|
|
|
|
5.7
|
|
|
|
7.8
|
|
|
|
|
Operating income
|
|
|
|
$
|
247.7
|
|
|
$
|
207.5
|
|
|
19.4
|
%
|
|
|
|
25.4
|
%
|
|
|
33.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
%
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Licensed stores
|
|
|
|
$
|
3.2
|
|
|
|
$
|
5.8
|
|
|
|
(44.8
|
)%
|
|
|
CPG, foodservice and other
|
|
|
|
|
49.0
|
|
|
|
|
35.6
|
|
|
|
37.6
|
|
|
Total net revenues
|
|
|
|
|
52.2
|
|
|
|
|
41.4
|
|
|
|
26.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
38.6
|
|
|
|
|
25.9
|
|
|
|
49.0
|
|
|
Other operating expenses
|
|
|
|
|
18.2
|
|
|
|
|
23.6
|
|
|
|
(22.9
|
)
|
|
Depreciation and amortization expenses
|
|
|
|
|
19.1
|
|
|
|
|
15.7
|
|
|
|
21.7
|
|
|
General and administrative expenses
|
|
|
|
|
147.7
|
|
|
|
|
143.4
|
|
|
|
3.0
|
|
|
|
|
Total operating expenses
|
|
|
|
|
223.6
|
|
|
|
|
208.6
|
|
|
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
0.4
|
|
|
|
|
(0.6
|
)
|
|
|
nm
|
|
|
|
Operating loss
|
|
|
|
$
|
(171.0
|
)
|
|
|
$
|
(167.8
|
)
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Licensed stores
|
|
|
|
$
|
9.8
|
|
|
|
$
|
24.2
|
|
|
|
(59.5
|
)%
|
|
|
CPG, foodservice and other
|
|
|
|
|
146.7
|
|
|
|
|
109.6
|
|
|
|
33.9
|
|
|
Total net revenues
|
|
|
|
|
156.5
|
|
|
|
|
133.8
|
|
|
|
17.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
107.3
|
|
|
|
|
75.1
|
|
|
|
42.9
|
|
|
Other operating expenses
|
|
|
|
|
52.8
|
|
|
|
|
77.6
|
|
|
|
(32.0
|
)
|
|
Depreciation and amortization expenses
|
|
|
|
|
57.0
|
|
|
|
|
40.9
|
|
|
|
39.4
|
|
|
General and administrative expenses
|
|
|
|
|
453.4
|
|
|
|
|
436.4
|
|
|
|
3.9
|
|
|
|
|
Total operating expenses
|
|
|
|
|
670.5
|
|
|
|
|
630.0
|
|
|
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investees
|
|
|
|
|
0.3
|
|
|
|
|
(1.5
|
)
|
|
|
nm
|
|
|
|
Operating loss
|
|
|
|
$
|
(513.7
|
)
|
|
|
$
|
(497.7
|
)
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information
The following supplemental information is provided for historical and
comparative purposes. The U.S. data is included as a transitional tool
to provide insight into the U.S. business, as it was previously a
reportable segment and is now the largest component of the Americas
segment:
Fiscal Third Quarter 2012 U.S. Supplemental Data
|
|
|
|
|
Quarter Ended
|
|
|
|
|
($ in millions)
|
|
|
|
Jul 1, 2012
|
|
|
Jul 3, 2011
|
|
|
Change
|
|
Comparable Store Sales Growth
|
|
|
|
7%
|
|
|
8%
|
|
|
|
|
Change in Transactions
|
|
|
|
5%
|
|
|
6%
|
|
|
|
|
Change in Ticket
|
|
|
|
2%
|
|
|
2%
|
|
|
|
|
Revenues
|
|
|
|
$2,193.8
|
|
|
$2,013.9
|
|
|
9%
|
|
Operating Income
|
|
|
|
$480.5
|
|
|
$417.6
|
|
|
15%
|
|
Operating Margin
|
|
|
|
21.9%
|
|
|
20.7%
|
|
|
120 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Third Quarter 2012 Store Data
The company’s store data for the periods presented are as follows:
|
|
|
|
|
|
Net stores opened/(closed) during the period
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Three Quarters Ended
|
|
|
Year Ended
|
|
|
Stores open as of
|
|
|
|
|
|
|
July 1,
|
|
|
July 3,
|
|
|
July 1,
|
|
|
July 3,
|
|
|
July 1,
|
|
July 3,
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
2011
|
|
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
47
|
|
|
0
|
|
|
83
|
|
|
4
|
|
|
7,706
|
|
7,584
|
|
|
Licensed stores
|
|
|
|
36
|
|
|
52
|
|
|
171
|
|
|
(105)
|
|
|
4,947
|
|
4,939
|
|
|
|
|
|
|
83
|
|
|
52
|
|
|
254
|
|
|
(101)
|
|
|
12,653
|
|
12,523
|
|
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores (1)
|
|
|
|
2
|
|
|
15
|
|
|
7
|
|
|
21
|
|
|
903
|
|
891
|
|
|
Licensed stores (1)
|
|
|
|
34
|
|
|
21
|
|
|
71
|
|
|
55
|
|
|
933
|
|
839
|
|
|
|
|
|
|
36
|
|
|
36
|
|
|
78
|
|
|
76
|
|
|
1,836
|
|
1,730
|
|
CAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
32
|
|
|
14
|
|
|
95
|
|
|
52
|
|
|
607
|
|
491
|
|
|
Licensed stores
|
|
|
|
80
|
|
|
53
|
|
|
221
|
|
|
133
|
|
|
2,555
|
|
2,274
|
|
|
|
|
|
|
112
|
|
|
67
|
|
|
316
|
|
|
185
|
|
|
3,162
|
|
2,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
231
|
|
|
155
|
|
|
648
|
|
|
160
|
|
|
17,651
|
|
17,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
EMEA store data has been adjusted for the acquisition of store
locations in Austria and Switzerland in Q4 fiscal 2011, by
reclassifying historical information from Licensed stores to
Company-operated stores.
|
|
|
|
Non-GAAP Disclosure
In addition to the GAAP results provided in this release, the company
provides non-GAAP operating margin and non-GAAP earnings per share
(non-GAAP EPS) for fiscal 2011. These non-GAAP financial measures are
not in accordance with, or an alternative for, generally accepted
accounting principles in the United States. The GAAP measure most
directly comparable to non-GAAP operating margin and non-GAAP earnings
per share (non-GAAP EPS) are operating margin and diluted net earnings
per share, respectively.
The fiscal 2011 non-GAAP financial measures provided in this release
exclude non-routine gains from the sale of properties and the
acquisition of the company’s joint venture operations in Switzerland and
Austria in fiscal 2011. The company’s management believes that providing
these non-GAAP financial measures better enables investors to understand
and evaluate the company’s historical and prospective operating
performance. More specifically, for historical non-GAAP financial
measures, management excludes the non-routine gains in fiscal 2011,
because it believes that the impact of non-routine gains do not reflect
expected future expenses and do not contribute to a meaningful
evaluation of the company’s future operating performance or comparisons
to the company’s past operating performance.
These non-GAAP financial measures may have limitations as analytical
tools, and these measures should not be considered in isolation or as a
substitute for analysis of the company’s results as reported under GAAP.
Other companies may calculate these non-GAAP financial measures
differently than the company does, limiting the usefulness of those
measures for comparative purposes.
|
STARBUCKS CORPORATION
|
|
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
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(unaudited)
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Quarter Ended
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Year Ended
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October 2,
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October 2,
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2011
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2011
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Consolidated
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Operating margin, as reported (GAAP)
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14.8
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%
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Gain on sale of properties
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(0.3
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)
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Non-GAAP operating margin
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14.5
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%
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Diluted EPS, as reported (GAAP)
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$
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0.47
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Gain on sale of properties
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(0.02
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)
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Gain from Switzerland and Austria transaction
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(0.07
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)
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Non-GAAP Diluted EPS
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$
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0.37
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Source: Starbucks Corporation
Starbucks Corporation
Investor Relations:
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investorrelations@starbucks.com
or
Media:
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