Comp Store Sales Rise 7% Globally, 8% in the Americas, and 11% in
China/Asia Pacific; Global Traffic Up 4%
Global Revenues Rise 18%; GAAP Operating Income Up 22% to a Q3 Record
$939 Million
GAAP EPS Jumps 21% to a Q3 Record $0.41; Non-GAAP EPS Jumps 24% to a Q3
Record $0.42
Company Increases Outlook for Fiscal 2015
SEATTLE--(BUSINESS WIRE)--Jul. 23, 2015--
Starbucks Corporation (NASDAQ: SBUX) today reported financial results
for its 13-week fiscal third quarter and 39-week fiscal year to date
ended June 28, 2015. Q3 FY15 GAAP results include Starbucks Japan
acquisition-related items, which are excluded from the non-GAAP results.
Please refer to the reconciliation of GAAP measures to non-GAAP measures
at the end of this release.
Q3 Fiscal 2015 Highlights:
-
Global comparable store sales increased 7%, driven by a 4% increase in
traffic
-
Americas comp sales increased 8%, driven by a 4% increase in
traffic
-
China/Asia Pacific comp sales increased 11%, driven by a 10%
increase in traffic
-
EMEA comp sales increased 3%, driven by a 2% increase in traffic
-
Consolidated net revenues increased 18% over Q3 FY14 to a quarterly
record $4.9 billion
-
Consolidated operating income up 22% to $938.6 million
-
Non-GAAP operating income up 24% to $950.1 million
-
Consolidated operating margin expanded 70 basis points to 19.2%
-
Non-GAAP operating margin increased 100 basis points to 19.5%
-
GAAP earnings increased 21% over Q3 FY14 to $0.41 per share
-
Non-GAAP earnings increased 24% over Q3 FY14 to $0.42 per share
-
Starbucks Mobile Order & Pay expanded to over 4,000 U.S.
company-operated stores in Q3; full deployment to all U.S.
company-operated stores by holiday
-
431 net new stores opened in the quarter; total store count reaches
22,519
-
Year over year comparable store customer transactions increased nearly
18 million in the U.S. and over 23 million globally
“Starbucks Q3 fiscal 2015 stands as among the strongest and most
remarkable quarters in our over 23 years as a public company,” said
Howard Schultz, chairman and ceo. “The 4% increase in global
transactions we reported equates to our having served an additional 23
million customer occasions in Q3 of this year over last year, clearly
evidencing a continuation of the strong momentum we have seen across our
business and around the world this fiscal year,” Schultz added.
“Starbucks very strong year over year financial performance in Q3
demonstrates our commitment to delivering best in class financial and
operating results while at the same time investing in our future growth
- building new stores, renovating existing stores, deploying new
technology - investing in our partners and delivering an elevated Starbucks
Experience to our customers,” said Scott Maw, Starbucks cfo. “We
believe that by getting this balance right, we will be able to continue
delivering exceptional growth, profitability and increased returns to
our shareholders,” Maw added.
|
|
|
|
|
Third Quarter Fiscal 2015 Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended Jun 28, 2015
|
Comparable Store Sales(1)
|
|
|
|
Sales Growth
|
|
|
|
|
|
Change in Transactions
|
|
|
|
|
|
Change in Ticket
|
Consolidated
|
|
|
|
7%
|
|
|
|
|
|
4%
|
|
|
|
|
|
3%
|
Americas
|
|
|
|
8%
|
|
|
|
|
|
4%
|
|
|
|
|
|
4%
|
EMEA
|
|
|
|
3%
|
|
|
|
|
|
2%
|
|
|
|
|
|
1%
|
CAP
|
|
|
|
11%
|
|
|
|
|
|
10%
|
|
|
|
|
|
1%
|
(1) Includes only Starbucks company-operated stores
open 13 months or longer.
|
|
Operating Results
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
($ in millions, except per share amounts)
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
Change
|
Net New Stores
|
|
|
|
|
|
431
|
|
|
|
|
|
344
|
|
|
|
|
|
87
|
Revenues
|
|
|
|
|
|
$4,881.2
|
|
|
|
|
|
$4,153.7
|
|
|
|
|
|
18%
|
Operating Income
|
|
|
|
|
|
$938.6
|
|
|
|
|
|
$768.5
|
|
|
|
|
|
22%
|
Operating Margin
|
|
|
|
|
|
19.2%
|
|
|
|
|
|
18.5%
|
|
|
|
|
|
70 bps
|
EPS
|
|
|
|
|
|
$0.41
|
|
|
|
|
|
$0.34
|
|
|
|
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net revenues were $4.9 billion in Q3 FY15, an increase of
18% over Q3 FY14. The increase was primarily driven by incremental
revenues from the acquisition of Starbucks Japan, a 7% increase in
global comparable store sales and the opening of 1,592 net new stores
over the past 12 months.
Consolidated operating income grew 22% to $938.6 million in Q3 FY15, up
from $768.5 million in Q3 FY14. Consolidated operating margin expanded
70 basis points to 19.2% primarily driven by sales leverage. This was
partially offset by the impact of our ownership change in Starbucks
Japan, which drove 90 basis points of margin decline, and by investments
in our store partners (employees) in the Americas segment.
|
|
|
|
|
|
|
Q3 Americas Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
Change
|
Net New Stores
|
|
|
|
|
|
171
|
|
|
|
|
|
149
|
|
|
|
|
|
22
|
Revenues
|
|
|
|
|
|
$3,414.6
|
|
|
|
|
|
$3,057.7
|
|
|
|
|
|
12%
|
Operating Income
|
|
|
|
|
|
$855.3
|
|
|
|
|
|
$728.5
|
|
|
|
|
|
17%
|
Operating Margin
|
|
|
|
|
|
25.0%
|
|
|
|
|
|
23.8%
|
|
|
|
|
|
120 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues for the Americas segment were $3.4 billion in Q3 FY15, an
increase of 12% over Q3 FY14. The increase was driven by 8% growth in
comparable store sales and incremental revenues from 658 net new store
openings over the past 12 months.
Operating income of $855.3 million in Q3 FY15 increased 17% from $728.5
million in Q3 FY14. Operating margin expanded 120 basis points to 25.0%
primarily due to sales leverage and lower commodity costs, primarily
dairy, and was partially offset by investments in our store partners
(employees).
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 EMEA Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
Change
|
Net New Stores
|
|
|
|
|
|
58
|
|
|
|
|
|
37
|
|
|
|
|
|
21
|
Revenues
|
|
|
|
|
|
$294.7
|
|
|
|
|
|
$323.5
|
|
|
|
|
|
(9)%
|
Operating Income
|
|
|
|
|
|
$36.0
|
|
|
|
|
|
$29.2
|
|
|
|
|
|
23%
|
Operating Margin
|
|
|
|
|
|
12.2%
|
|
|
|
|
|
9.0%
|
|
|
|
|
|
320 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues for the EMEA segment were $294.7 million in Q3 FY15, a 9%
decrease versus Q3 FY14. The decrease was primarily driven by
unfavorable foreign currency translation and the shift in the portfolio
towards more licensed stores. Partially offsetting the decrease was a 3%
increase in comparable store sales.
Operating income increased 23% to $36.0 million in Q3 FY15, up from
$29.2 million in Q3 FY14. Operating margin expanded 320 basis points to
12.2%, primarily due to sales leverage driven by the ongoing shift in
the portfolio towards more licensed stores.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 China/Asia Pacific Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
Change
|
Net New Stores
|
|
|
|
|
|
205
|
|
|
|
|
|
160
|
|
|
|
|
|
45
|
Revenues
|
|
|
|
|
|
$652.7
|
|
|
|
|
|
$287.6
|
|
|
|
|
|
127%
|
Operating Income
|
|
|
|
|
|
$150.0
|
|
|
|
|
|
$100.8
|
|
|
|
|
|
49%
|
Operating Margin
|
|
|
|
|
|
23.0%
|
|
|
|
|
|
35.0%
|
|
|
|
|
|
(1,200) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues for the China/Asia Pacific segment grew 127% to $652.7
million in Q3 FY15. The increase was primarily driven by incremental
revenues from the acquisition of Starbucks Japan. Also contributing were
incremental revenues from 750 net new store openings over the past 12
months and an 11% increase in comparable store sales.
Operating income grew 49% to $150.0 million in Q3 FY15. Operating margin
declined 1,200 basis points to 23.0% due to the impact of our ownership
change in Starbucks Japan, which drove a 1,570 basis point decline. The
remaining 370 basis point expansion was primarily driven by sales
leverage as well as improved profitability in our company-operated
stores in the region.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 Channel Development Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
Change
|
Revenues
|
|
|
|
|
|
$403.6
|
|
|
|
|
|
$375.3
|
|
|
|
|
|
8%
|
Operating Income
|
|
|
|
|
|
$143.4
|
|
|
|
|
|
$139.3
|
|
|
|
|
|
3%
|
Operating Margin
|
|
|
|
|
|
35.5%
|
|
|
|
|
|
37.1%
|
|
|
|
|
|
(160) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues for the Channel Development segment grew 8% to $403.6
million in Q3 FY15, primarily driven by increased sales of premium
single-serve products and higher foodservice sales.
Operating income of $143.4 million in Q3 FY15 grew 3% compared to Q3
FY14. Operating margin decreased 160 basis points to 35.5%, primarily
driven by increased marketing spend and increased coffee costs. The
decrease was partially offset by leverage on cost of sales and increased
income from our North American Coffee Partnership.
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 All Other Segments Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
Change
|
Net New Stores
|
|
|
|
|
|
(3)
|
|
|
|
|
|
(2)
|
|
|
|
|
|
(1)
|
Revenues
|
|
|
|
|
|
$115.6
|
|
|
|
|
|
$109.6
|
|
|
|
|
|
5%
|
Operating Loss
|
|
|
|
|
|
$(13.1)
|
|
|
|
|
|
$(18.9)
|
|
|
|
|
|
(31)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended Jun 28, 2015
|
Comparable Store Sales(1)
|
|
|
|
|
|
Sales Growth
|
|
|
|
|
|
Change in Transactions
|
|
|
|
|
|
Change in Ticket
|
Consolidated
|
|
|
|
|
|
7%
|
|
|
|
|
|
3%
|
|
|
|
|
|
4%
|
Americas
|
|
|
|
|
|
7%
|
|
|
|
|
|
3%
|
|
|
|
|
|
4%
|
EMEA
|
|
|
|
|
|
3%
|
|
|
|
|
|
2%
|
|
|
|
|
|
1%
|
CAP
|
|
|
|
|
|
10%
|
|
|
|
|
|
9%
|
|
|
|
|
|
1%
|
(1) Includes only Starbucks company-operated stores
open 13 months or longer.
|
|
Operating Results
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
($ in millions, except per share amounts)
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
Change
|
Net New Stores (1)
|
|
|
|
|
|
1,153
|
|
|
|
|
|
1,096
|
|
|
|
|
|
57
|
Revenues
|
|
|
|
|
|
$14,247.9
|
|
|
|
|
|
$12,267.1
|
|
|
|
|
|
16%
|
Operating Income
|
|
|
|
|
|
$2,631.6
|
|
|
|
|
|
$2,226.3
|
|
|
|
|
|
18%
|
Operating Margin
|
|
|
|
|
|
18.5%
|
|
|
|
|
|
18.1%
|
|
|
|
|
|
40 bps
|
EPS
|
|
|
|
|
|
$1.39
|
|
|
|
|
|
$0.97
|
|
|
|
|
|
43%
|
(1) Net new stores include the closure of 132 Target
Canada licensed stores in the second quarter of fiscal 2015.
|
|
Fiscal 2015 Targets
Starbucks is providing the following fiscal 2015 targets. Projected Q4
FY15 non-GAAP adjustments relate to the acquisition of Starbucks Japan
and the redemption of debt; please refer to the reconciliation of GAAP
measures to non-GAAP measures at the end of this release.
The Company Provides the Following Targets:
-
Total net new store openings for the fiscal year remain at 1,650:
-
Americas: remain at approximately 600, half licensed
-
EMEA: remain at approximately 200, primarily licensed
-
China/Asia Pacific: remain at approximately 850, two-thirds
licensed
-
Continue to expect full year revenue growth of 16% to 18%
-
Global comparable store sales growth remains in the mid-single digits
-
Full year GAAP operating margin is still expected to be flat to FY14
due to the impact of the acquisition of Starbucks Japan; full year
non-GAAP operating margin is still expected to modestly improve over
prior year non-GAAP operating margin. Operating margin by segment:
-
Americas: continue to expect modest margin improvement over FY14
-
EMEA: now expecting margin to be at or slightly above the upper
end of the 10% to 12% range
-
China/Asia Pacific: now expecting margin to be slightly over 20%
-
Channel Development: continue to expect margin improvement of
approximately 150 basis points over FY14
-
Continue to expect a consolidated tax rate of approximately 31% on a
GAAP basis
-
GAAP Earnings per Share:
-
Now expect full year EPS in the range of $1.77 to $1.78
-
Now expect Q4 EPS in the range of $0.38 to $0.39
-
Non-GAAP Earnings per Share:
-
Now expect full year EPS in the range of $1.57 to $1.58
-
Continue to expect Q4 EPS in the range of $0.42 to $0.43
-
The Company now expects capital expenditures of approximately $1.3
billion
Company Updates
-
Starbucks and PepsiCo, Inc. today announced they have entered into an
agreement for the marketing, sales and distribution of a
locally-relevant portfolio of Starbucks ready-to-drink (RTD) coffee
and energy products in Latin America.
-
Enhancing the digital experience for My Starbucks Rewards®
members, the company has recently made three strategic relationship
announcements, starting with Spotify in May, The New York Times
on July 21 and Lyft on July 22. Each of the announcements
supports a new opportunity for Starbucks loyalty program members to
earn stars through purchases made with other companies and then have
the ability to redeem those earned stars for food and beverages at
participating Starbucks® stores. These relationships, collectively,
lend to a broader strategy to build a robust digital ecosystem with
businesses that complement our customer experience.
-
The Company recently announced two new strategic business
partnerships; the first is a licensed agreement with Casino
Restauration (a subsidiary of Groupe Casino) that will open Starbucks
stores within Géant Casino Hypermarkets and Casino Supermarkets across
France. The second is a licensed partnership with Taste Holdings to
open Starbucks stores across South Africa, starting with Johannesburg
which is expected to open in 2016. This will be Starbucks first store
in sub-Saharan Africa.
-
In May, Starbucks opened a store in Japan’s Tottori Prefecture, the
last district in Japan without a Starbucks store. The company operates
more than 1,000 stores across the country.
-
Starbucks, along with more than a dozen leading, U.S.-based companies,
announced on July 13 the formation of the 100,000 Opportunities
Initiative, an employer-led coalition with a collective goal of
engaging 100,000 Opportunity Youth - 16 to 24 year olds who face
systemic barriers to jobs and education - through apprenticeships,
internships, training programs, and both part-time and full-time jobs.
-
In June, Starbucks raised $850 million in proceeds from a public
offering of $500 million of 2.700% Senior Notes due 2022 and $350
million of 4.300% Senior Notes due 2045. As previously announced, a
portion of the proceeds from the offering were used to redeem the
Company’s $550 million of 6.250% Senior Notes due 2017. The redemption
was settled July 1, 2015.
-
The Company repurchased 12.1 million shares of common stock in Q3
FY15; 61 million shares remain available for purchase under current
authorizations, comprised of 11 million shares that remained available
for repurchase as of June 28, 2015 under an existing authorization and
an additional 50 million shares which the Company announced today has
been authorized for repurchase by its Board of Directors under its
ongoing share repurchase program.
-
The Board of Directors declared a cash dividend of $0.16 per share,
payable on August 21, 2015 to shareholders of record as of August 6,
2015.
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 and ceo; Kevin
Johnson, president and coo; and Scott Maw, cfo. The call will be webcast
and can be accessed at http://investor.starbucks.com.
A replay of the webcast will be available through approximately 9:00
p.m. Pacific Time on Thursday, August 20, 2015.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high-quality arabica coffee. 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 news.starbucks.com
or 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 our diversified business model, the strength,
momentum, health and potential of our business, operations and brand,
our innovation, growth and growth opportunities and related investments,
earnings per share, revenues, operating margins, profitability, capital
expenditures, tax rate, financial discipline, anticipated gains and
costs related to the acquisition of Starbucks Japan, comparable store
sales and net new stores. 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, fluctuations in U.S. and international
economies and currencies, our ability to preserve, grow and leverage our
brands, potential negative effects of material breaches of our
information technology systems if any were to occur, costs associated
with, and the successful execution of, the company’s initiatives and
plans, including the acquisition of Starbucks Japan, the acceptance of
the company’s products by our customers, the impact of competition,
coffee, dairy and other raw material prices and availability, 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 September 28, 2014. 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
|
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
% Change
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of total net revenues
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
3,915.0
|
|
|
|
|
$
|
3,290.5
|
|
|
|
|
19.0
|
%
|
|
|
|
80.2
|
%
|
|
|
|
79.2
|
%
|
Licensed stores
|
|
|
|
475.2
|
|
|
|
|
408.1
|
|
|
|
|
16.4
|
|
|
|
|
9.7
|
|
|
|
|
9.8
|
|
CPG, foodservice and other
|
|
|
|
491.0
|
|
|
|
|
455.1
|
|
|
|
|
7.9
|
|
|
|
|
10.1
|
|
|
|
|
11.0
|
|
Total net revenues
|
|
|
|
4,881.2
|
|
|
|
|
4,153.7
|
|
|
|
|
17.5
|
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales including occupancy costs
|
|
|
|
1,953.9
|
|
|
|
|
1,711.5
|
|
|
|
|
14.2
|
|
|
|
|
40.0
|
|
|
|
|
41.2
|
|
Store operating expenses
|
|
|
|
1,392.4
|
|
|
|
|
1,176.5
|
|
|
|
|
18.4
|
|
|
|
|
28.5
|
|
|
|
|
28.3
|
|
Other operating expenses
|
|
|
|
131.6
|
|
|
|
|
120.6
|
|
|
|
|
9.1
|
|
|
|
|
2.7
|
|
|
|
|
2.9
|
|
Depreciation and amortization expenses
|
|
|
|
236.5
|
|
|
|
|
180.1
|
|
|
|
|
31.3
|
|
|
|
|
4.8
|
|
|
|
|
4.3
|
|
General and administrative expenses
|
|
|
|
288.5
|
|
|
|
|
269.4
|
|
|
|
|
7.1
|
|
|
|
|
5.9
|
|
|
|
|
6.5
|
|
Total operating expenses
|
|
|
|
4,002.9
|
|
|
|
|
3,458.1
|
|
|
|
|
15.8
|
|
|
|
|
82.0
|
|
|
|
|
83.3
|
|
Income from equity investees
|
|
|
|
60.3
|
|
|
|
|
72.9
|
|
|
|
|
(17.3
|
)
|
|
|
|
1.2
|
|
|
|
|
1.8
|
|
Operating income
|
|
|
|
938.6
|
|
|
|
|
768.5
|
|
|
|
|
22.1
|
|
|
|
|
19.2
|
|
|
|
|
18.5
|
|
Interest income and other, net
|
|
|
|
25.5
|
|
|
|
|
19.4
|
|
|
|
|
31.4
|
|
|
|
|
0.5
|
|
|
|
|
0.5
|
|
Interest expense
|
|
|
|
(19.1
|
)
|
|
|
|
(16.4
|
)
|
|
|
|
16.5
|
|
|
|
|
(0.4
|
)
|
|
|
|
(0.4
|
)
|
Earnings before income taxes
|
|
|
|
945.0
|
|
|
|
|
771.5
|
|
|
|
|
22.5
|
|
|
|
|
19.4
|
|
|
|
|
18.6
|
|
Income taxes
|
|
|
|
318.5
|
|
|
|
|
259.0
|
|
|
|
|
23.0
|
|
|
|
|
6.5
|
|
|
|
|
6.2
|
|
Net earnings including noncontrolling interests
|
|
|
|
626.5
|
|
|
|
|
512.5
|
|
|
|
|
22.2
|
|
|
|
|
12.8
|
|
|
|
|
12.3
|
|
Net earnings/(loss) attributable to noncontrolling interests
|
|
|
|
(0.2
|
)
|
|
|
|
(0.1
|
)
|
|
|
|
100.0
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Net earnings attributable to Starbucks
|
|
|
|
$
|
626.7
|
|
|
|
|
$
|
512.6
|
|
|
|
|
22.3
|
|
|
|
|
12.8
|
%
|
|
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share - diluted
|
|
|
|
$
|
0.41
|
|
|
|
|
$
|
0.34
|
|
|
|
|
20.6
|
%
|
|
|
|
|
|
|
|
|
Weighted avg. shares outstanding - diluted
|
|
|
|
1,515.7
|
|
|
|
|
1,522.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
|
|
$
|
0.16
|
|
|
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35.6
|
%
|
|
|
|
35.8
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33.7
|
%
|
|
|
|
33.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
Three Quarters Ended
|
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
% Change
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of total net revenues
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
11,310.7
|
|
|
|
|
$
|
9,702.3
|
|
|
|
|
16.6
|
%
|
|
|
|
79.4
|
%
|
|
|
|
79.1
|
%
|
Licensed stores
|
|
|
|
1,380.5
|
|
|
|
|
1,166.1
|
|
|
|
|
18.4
|
|
|
|
|
9.7
|
|
|
|
|
9.5
|
|
CPG, foodservice and other
|
|
|
|
1,556.7
|
|
|
|
|
1,398.7
|
|
|
|
|
11.3
|
|
|
|
|
10.9
|
|
|
|
|
11.4
|
|
Total net revenues
|
|
|
|
14,247.9
|
|
|
|
|
12,267.1
|
|
|
|
|
16.1
|
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales including occupancy costs
|
|
|
|
5,804.9
|
|
|
|
|
5,135.7
|
|
|
|
|
13.0
|
|
|
|
|
40.7
|
|
|
|
|
41.9
|
|
Store operating expenses
|
|
|
|
4,032.5
|
|
|
|
|
3,486.1
|
|
|
|
|
15.7
|
|
|
|
|
28.3
|
|
|
|
|
28.4
|
|
Other operating expenses
|
|
|
|
394.5
|
|
|
|
|
346.3
|
|
|
|
|
13.9
|
|
|
|
|
2.8
|
|
|
|
|
2.8
|
|
Depreciation and amortization expenses
|
|
|
|
659.6
|
|
|
|
|
524.2
|
|
|
|
|
25.8
|
|
|
|
|
4.6
|
|
|
|
|
4.3
|
|
General and administrative expenses
|
|
|
|
892.8
|
|
|
|
|
752.6
|
|
|
|
|
18.6
|
|
|
|
|
6.3
|
|
|
|
|
6.1
|
|
Litigation credit
|
|
|
|
—
|
|
|
|
|
(20.2
|
)
|
|
|
|
(100.0
|
)
|
|
|
|
—
|
|
|
|
|
(0.2
|
)
|
Total operating expenses
|
|
|
|
11,784.3
|
|
|
|
|
10,224.7
|
|
|
|
|
15.3
|
|
|
|
|
82.7
|
|
|
|
|
83.4
|
|
Income from equity investees
|
|
|
|
168.0
|
|
|
|
|
183.9
|
|
|
|
|
(8.6
|
)
|
|
|
|
1.2
|
|
|
|
|
1.5
|
|
Operating income
|
|
|
|
2,631.6
|
|
|
|
|
2,226.3
|
|
|
|
|
18.2
|
|
|
|
|
18.5
|
|
|
|
|
18.1
|
|
Gain resulting from acquisition of joint venture
|
|
|
|
390.6
|
|
|
|
|
—
|
|
|
|
|
nm
|
|
|
|
2.7
|
|
|
|
|
—
|
|
Interest income and other, net
|
|
|
|
36.6
|
|
|
|
|
57.0
|
|
|
|
|
(35.8
|
)
|
|
|
|
0.3
|
|
|
|
|
0.5
|
|
Interest expense
|
|
|
|
(52.3
|
)
|
|
|
|
(47.7
|
)
|
|
|
|
9.6
|
|
|
|
|
(0.4
|
)
|
|
|
|
(0.4
|
)
|
Earnings before income taxes
|
|
|
|
3,006.5
|
|
|
|
|
2,235.6
|
|
|
|
|
34.5
|
|
|
|
|
21.1
|
|
|
|
|
18.2
|
|
Income taxes
|
|
|
|
899.7
|
|
|
|
|
755.4
|
|
|
|
|
19.1
|
|
|
|
|
6.3
|
|
|
|
|
6.2
|
|
Net earnings including noncontrolling interests
|
|
|
|
2,106.8
|
|
|
|
|
1,480.2
|
|
|
|
|
42.3
|
|
|
|
|
14.8
|
|
|
|
|
12.1
|
|
Net earnings/(loss) attributable to noncontrolling interests
|
|
|
|
1.9
|
|
|
|
|
(0.1
|
)
|
|
|
|
nm
|
|
|
|
—
|
|
|
|
|
—
|
|
Net earnings attributable to Starbucks
|
|
|
|
$
|
2,104.9
|
|
|
|
|
$
|
1,480.3
|
|
|
|
|
42.2
|
%
|
|
|
|
14.8
|
%
|
|
|
|
12.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share - diluted
|
|
|
|
$
|
1.39
|
|
|
|
|
$
|
0.97
|
|
|
|
|
43.3
|
%
|
|
|
|
|
|
|
|
|
Weighted avg. shares outstanding - diluted
|
|
|
|
1,516.3
|
|
|
|
|
1,527.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
|
|
$
|
0.48
|
|
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35.7
|
%
|
|
|
|
35.9
|
%
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29.9
|
%
|
|
|
|
33.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Results (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
% Change
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of Americas
total net revenues
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
3,061.3
|
|
|
|
|
$
|
2,772.3
|
|
|
|
|
10.4
|
%
|
|
|
|
89.7
|
%
|
|
|
|
90.7
|
%
|
Licensed stores
|
|
|
|
344.9
|
|
|
|
|
275.6
|
|
|
|
|
25.1
|
|
|
|
|
10.1
|
|
|
|
|
9.0
|
|
Foodservice and other
|
|
|
|
8.4
|
|
|
|
|
9.8
|
|
|
|
|
(14.3
|
)
|
|
|
|
0.2
|
|
|
|
|
0.3
|
|
Total net revenues
|
|
|
|
3,414.6
|
|
|
|
|
3,057.7
|
|
|
|
|
11.7
|
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales including occupancy costs
|
|
|
|
1,227.7
|
|
|
|
|
1,130.0
|
|
|
|
|
8.6
|
|
|
|
|
36.0
|
|
|
|
|
37.0
|
|
Store operating expenses
|
|
|
|
1,126.7
|
|
|
|
|
1,002.4
|
|
|
|
|
12.4
|
|
|
|
|
33.0
|
|
|
|
|
32.8
|
|
Other operating expenses
|
|
|
|
26.9
|
|
|
|
|
26.2
|
|
|
|
|
2.7
|
|
|
|
|
0.8
|
|
|
|
|
0.9
|
|
Depreciation and amortization expenses
|
|
|
|
130.8
|
|
|
|
|
119.5
|
|
|
|
|
9.5
|
|
|
|
|
3.8
|
|
|
|
|
3.9
|
|
General and administrative expenses
|
|
|
|
47.2
|
|
|
|
|
51.1
|
|
|
|
|
(7.6
|
)
|
|
|
|
1.4
|
|
|
|
|
1.7
|
|
Total operating expenses
|
|
|
|
2,559.3
|
|
|
|
|
2,329.2
|
|
|
|
|
9.9
|
|
|
|
|
75.0
|
|
|
|
|
76.2
|
|
Operating income
|
|
|
|
$
|
855.3
|
|
|
|
|
$
|
728.5
|
|
|
|
|
17.4
|
%
|
|
|
|
25.0
|
%
|
|
|
|
23.8
|
%
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36.8
|
%
|
|
|
|
36.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
8,890.5
|
|
|
|
|
$
|
8,120.6
|
|
|
|
|
9.5
|
%
|
|
|
|
89.7
|
%
|
|
|
|
90.8
|
%
|
Licensed stores
|
|
|
|
993.0
|
|
|
|
|
787.6
|
|
|
|
|
26.1
|
|
|
|
|
10.0
|
|
|
|
|
8.8
|
|
Foodservice and other
|
|
|
|
26.0
|
|
|
|
|
31.2
|
|
|
|
|
(16.7
|
)
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
Total net revenues
|
|
|
|
9,909.5
|
|
|
|
|
8,939.4
|
|
|
|
|
10.9
|
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales including occupancy costs
|
|
|
|
3,624.4
|
|
|
|
|
3,353.8
|
|
|
|
|
8.1
|
|
|
|
|
36.6
|
|
|
|
|
37.5
|
|
Store operating expenses
|
|
|
|
3,276.1
|
|
|
|
|
2,965.9
|
|
|
|
|
10.5
|
|
|
|
|
33.1
|
|
|
|
|
33.2
|
|
Other operating expenses
|
|
|
|
93.4
|
|
|
|
|
75.2
|
|
|
|
|
24.2
|
|
|
|
|
0.9
|
|
|
|
|
0.8
|
|
Depreciation and amortization expenses
|
|
|
|
386.5
|
|
|
|
|
346.6
|
|
|
|
|
11.5
|
|
|
|
|
3.9
|
|
|
|
|
3.9
|
|
General and administrative expenses
|
|
|
|
146.6
|
|
|
|
|
131.9
|
|
|
|
|
11.1
|
|
|
|
|
1.5
|
|
|
|
|
1.5
|
|
Total operating expenses
|
|
|
|
7,527.0
|
|
|
|
|
6,873.4
|
|
|
|
|
9.5
|
|
|
|
|
76.0
|
|
|
|
|
76.9
|
|
Operating income
|
|
|
|
$
|
2,382.5
|
|
|
|
|
$
|
2,066.0
|
|
|
|
|
15.3
|
%
|
|
|
|
24.0
|
%
|
|
|
|
23.1
|
%
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36.8
|
%
|
|
|
|
36.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
% Change
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of EMEA total net revenues
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
217.8
|
|
|
|
|
$
|
251.8
|
|
|
|
|
(13.5
|
)%
|
|
|
|
73.9
|
%
|
|
|
|
77.8
|
%
|
Licensed stores
|
|
|
|
65.5
|
|
|
|
|
60.8
|
|
|
|
|
7.7
|
|
|
|
|
22.2
|
|
|
|
|
18.8
|
|
Foodservice
|
|
|
|
11.4
|
|
|
|
|
10.9
|
|
|
|
|
4.6
|
|
|
|
|
3.9
|
|
|
|
|
3.4
|
|
Total net revenues
|
|
|
|
294.7
|
|
|
|
|
323.5
|
|
|
|
|
(8.9
|
)
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales including occupancy costs
|
|
|
|
143.1
|
|
|
|
|
161.4
|
|
|
|
|
(11.3
|
)
|
|
|
|
48.6
|
|
|
|
|
49.9
|
|
Store operating expenses
|
|
|
|
78.4
|
|
|
|
|
91.4
|
|
|
|
|
(14.2
|
)
|
|
|
|
26.6
|
|
|
|
|
28.3
|
|
Other operating expenses
|
|
|
|
12.9
|
|
|
|
|
12.5
|
|
|
|
|
3.2
|
|
|
|
|
4.4
|
|
|
|
|
3.9
|
|
Depreciation and amortization expenses
|
|
|
|
12.4
|
|
|
|
|
15.1
|
|
|
|
|
(17.9
|
)
|
|
|
|
4.2
|
|
|
|
|
4.7
|
|
General and administrative expenses
|
|
|
|
12.8
|
|
|
|
|
15.0
|
|
|
|
|
(14.7
|
)
|
|
|
|
4.3
|
|
|
|
|
4.6
|
|
Total operating expenses
|
|
|
|
259.6
|
|
|
|
|
295.4
|
|
|
|
|
(12.1
|
)
|
|
|
|
88.1
|
|
|
|
|
91.3
|
|
Income from equity investees
|
|
|
|
0.9
|
|
|
|
|
1.1
|
|
|
|
|
(18.2
|
)
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
Operating income
|
|
|
|
$
|
36.0
|
|
|
|
|
$
|
29.2
|
|
|
|
|
23.3
|
%
|
|
|
|
12.2
|
%
|
|
|
|
9.0
|
%
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36.0
|
%
|
|
|
|
36.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
688.0
|
|
|
|
|
$
|
766.3
|
|
|
|
|
(10.2
|
)%
|
|
|
|
75.7
|
%
|
|
|
|
78.8
|
%
|
Licensed stores
|
|
|
|
185.4
|
|
|
|
|
175.8
|
|
|
|
|
5.5
|
|
|
|
|
20.4
|
|
|
|
|
18.1
|
|
Foodservice
|
|
|
|
35.0
|
|
|
|
|
30.9
|
|
|
|
|
13.3
|
|
|
|
|
3.9
|
|
|
|
|
3.2
|
|
Total net revenues
|
|
|
|
908.4
|
|
|
|
|
973.0
|
|
|
|
|
(6.6
|
)
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales including occupancy costs
|
|
|
|
434.4
|
|
|
|
|
487.9
|
|
|
|
|
(11.0
|
)
|
|
|
|
47.8
|
|
|
|
|
50.1
|
|
Store operating expenses
|
|
|
|
240.4
|
|
|
|
|
280.1
|
|
|
|
|
(14.2
|
)
|
|
|
|
26.5
|
|
|
|
|
28.8
|
|
Other operating expenses
|
|
|
|
40.0
|
|
|
|
|
35.9
|
|
|
|
|
11.4
|
|
|
|
|
4.4
|
|
|
|
|
3.7
|
|
Depreciation and amortization expenses
|
|
|
|
38.9
|
|
|
|
|
44.5
|
|
|
|
|
(12.6
|
)
|
|
|
|
4.3
|
|
|
|
|
4.6
|
|
General and administrative expenses
|
|
|
|
41.6
|
|
|
|
|
47.1
|
|
|
|
|
(11.7
|
)
|
|
|
|
4.6
|
|
|
|
|
4.8
|
|
Total operating expenses
|
|
|
|
795.3
|
|
|
|
|
895.5
|
|
|
|
|
(11.2
|
)
|
|
|
|
87.5
|
|
|
|
|
92.0
|
|
Income from equity investees
|
|
|
|
2.1
|
|
|
|
|
3.0
|
|
|
|
|
(30.0
|
)
|
|
|
|
0.2
|
|
|
|
|
0.3
|
|
Operating income
|
|
|
|
$
|
115.2
|
|
|
|
|
$
|
80.5
|
|
|
|
|
43.1
|
%
|
|
|
|
12.7
|
%
|
|
|
|
8.3
|
%
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34.9
|
%
|
|
|
|
36.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China/Asia Pacific (CAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
% Change
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of CAP total net revenues
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
588.4
|
|
|
|
|
$
|
217.0
|
|
|
|
|
171.2
|
%
|
|
|
|
90.1
|
%
|
|
|
|
75.5
|
%
|
Licensed stores
|
|
|
|
63.1
|
|
|
|
|
70.6
|
|
|
|
|
(10.6
|
)
|
|
|
|
9.7
|
|
|
|
|
24.5
|
|
Foodservice and other
|
|
|
|
1.2
|
|
|
|
|
—
|
|
|
|
|
nm
|
|
|
|
0.2
|
|
|
|
|
—
|
|
Total net revenues
|
|
|
|
652.7
|
|
|
|
|
287.6
|
|
|
|
|
126.9
|
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales including occupancy costs
|
|
|
|
281.8
|
|
|
|
|
137.8
|
|
|
|
|
104.5
|
|
|
|
|
43.2
|
|
|
|
|
47.9
|
|
Store operating expenses
|
|
|
|
161.2
|
|
|
|
|
54.8
|
|
|
|
|
194.2
|
|
|
|
|
24.7
|
|
|
|
|
19.1
|
|
Other operating expenses
|
|
|
|
15.8
|
|
|
|
|
13.2
|
|
|
|
|
19.7
|
|
|
|
|
2.4
|
|
|
|
|
4.6
|
|
Depreciation and amortization expenses
|
|
|
|
41.2
|
|
|
|
|
11.3
|
|
|
|
|
264.6
|
|
|
|
|
6.3
|
|
|
|
|
3.9
|
|
General and administrative expenses
|
|
|
|
30.3
|
|
|
|
|
16.0
|
|
|
|
|
89.4
|
|
|
|
|
4.6
|
|
|
|
|
5.6
|
|
Total operating expenses
|
|
|
|
530.3
|
|
|
|
|
233.1
|
|
|
|
|
127.5
|
|
|
|
|
81.2
|
|
|
|
|
81.1
|
|
Income from equity investees
|
|
|
|
27.6
|
|
|
|
|
46.3
|
|
|
|
|
(40.4
|
)
|
|
|
|
4.2
|
|
|
|
|
16.1
|
|
Operating income
|
|
|
|
$
|
150.0
|
|
|
|
|
$
|
100.8
|
|
|
|
|
48.8
|
%
|
|
|
|
23.0
|
%
|
|
|
|
35.0
|
%
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27.4
|
%
|
|
|
|
25.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
1,542.5
|
|
|
|
|
$
|
621.1
|
|
|
|
|
148.3
|
%
|
|
|
|
88.5
|
%
|
|
|
|
75.8
|
%
|
Licensed stores
|
|
|
|
197.6
|
|
|
|
|
198.7
|
|
|
|
|
(0.6
|
)%
|
|
|
|
11.3
|
|
|
|
|
24.2
|
|
Foodservice and other
|
|
|
|
3.5
|
|
|
|
|
—
|
|
|
|
|
nm
|
|
|
|
0.2
|
|
|
|
|
—
|
|
Total net revenues
|
|
|
|
1,743.6
|
|
|
|
|
819.8
|
|
|
|
|
112.7
|
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales including occupancy costs
|
|
|
|
784.8
|
|
|
|
|
398.0
|
|
|
|
|
97.2
|
|
|
|
|
45.0
|
|
|
|
|
48.5
|
|
Store operating expenses
|
|
|
|
436.0
|
|
|
|
|
158.5
|
|
|
|
|
175.1
|
|
|
|
|
25.0
|
|
|
|
|
19.3
|
|
Other operating expenses
|
|
|
|
43.4
|
|
|
|
|
34.8
|
|
|
|
|
24.7
|
|
|
|
|
2.5
|
|
|
|
|
4.2
|
|
Depreciation and amortization expenses
|
|
|
|
106.3
|
|
|
|
|
33.4
|
|
|
|
|
218.3
|
|
|
|
|
6.1
|
|
|
|
|
4.1
|
|
General and administrative expenses
|
|
|
|
88.4
|
|
|
|
|
43.1
|
|
|
|
|
105.1
|
|
|
|
|
5.1
|
|
|
|
|
5.3
|
|
Total operating expenses
|
|
|
|
1,458.9
|
|
|
|
|
667.8
|
|
|
|
|
118.5
|
|
|
|
|
83.7
|
|
|
|
|
81.5
|
|
Income from equity investees
|
|
|
|
85.8
|
|
|
|
|
116.8
|
|
|
|
|
(26.5
|
)
|
|
|
|
4.9
|
|
|
|
|
14.2
|
|
Operating income
|
|
|
|
$
|
370.5
|
|
|
|
|
$
|
268.8
|
|
|
|
|
37.8
|
%
|
|
|
|
21.2
|
%
|
|
|
|
32.8
|
%
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28.3
|
%
|
|
|
|
25.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Channel Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
% Change
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of Channel Development total net
revenues
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPG
|
|
|
|
$
|
302.2
|
|
|
|
|
$
|
286.6
|
|
|
|
|
5.4
|
%
|
|
|
|
74.9
|
%
|
|
|
|
76.4
|
%
|
Foodservice
|
|
|
|
101.4
|
|
|
|
|
88.7
|
|
|
|
|
14.3
|
|
|
|
|
25.1
|
|
|
|
|
23.6
|
|
Total net revenues
|
|
|
|
403.6
|
|
|
|
|
375.3
|
|
|
|
|
7.5
|
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales
|
|
|
|
228.3
|
|
|
|
|
208.3
|
|
|
|
|
9.6
|
|
|
|
|
56.6
|
|
|
|
|
55.5
|
|
Other operating expenses
|
|
|
|
58.9
|
|
|
|
|
48.3
|
|
|
|
|
21.9
|
|
|
|
|
14.6
|
|
|
|
|
12.9
|
|
Depreciation and amortization expenses
|
|
|
|
0.7
|
|
|
|
|
0.4
|
|
|
|
|
75.0
|
|
|
|
|
0.2
|
|
|
|
|
0.1
|
|
General and administrative expenses
|
|
|
|
4.1
|
|
|
|
|
4.5
|
|
|
|
|
(8.9
|
)
|
|
|
|
1.0
|
|
|
|
|
1.2
|
|
Total operating expenses
|
|
|
|
292.0
|
|
|
|
|
261.5
|
|
|
|
|
11.7
|
|
|
|
|
72.3
|
|
|
|
|
69.7
|
|
Income from equity investees
|
|
|
|
31.8
|
|
|
|
|
25.5
|
|
|
|
|
24.7
|
|
|
|
|
7.9
|
|
|
|
|
6.8
|
|
Operating income
|
|
|
|
$
|
143.4
|
|
|
|
|
$
|
139.3
|
|
|
|
|
2.9
|
%
|
|
|
|
35.5
|
%
|
|
|
|
37.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPG
|
|
|
|
$
|
975.8
|
|
|
|
|
$
|
875.1
|
|
|
|
|
11.5
|
%
|
|
|
|
76.6
|
%
|
|
|
|
76.3
|
%
|
Foodservice
|
|
|
|
298.4
|
|
|
|
|
271.7
|
|
|
|
|
9.8
|
|
|
|
|
23.4
|
|
|
|
|
23.7
|
|
Total net revenues
|
|
|
|
1,274.2
|
|
|
|
|
1,146.8
|
|
|
|
|
11.1
|
|
|
|
|
100.0
|
|
|
|
|
100.0
|
|
Cost of sales
|
|
|
|
722.2
|
|
|
|
|
667.5
|
|
|
|
|
8.2
|
|
|
|
|
56.7
|
|
|
|
|
58.2
|
|
Other operating expenses
|
|
|
|
160.9
|
|
|
|
|
142.9
|
|
|
|
|
12.6
|
|
|
|
|
12.6
|
|
|
|
|
12.5
|
|
Depreciation and amortization expenses
|
|
|
|
2.0
|
|
|
|
|
1.2
|
|
|
|
|
66.7
|
|
|
|
|
0.2
|
|
|
|
|
0.1
|
|
General and administrative expenses
|
|
|
|
12.5
|
|
|
|
|
13.8
|
|
|
|
|
(9.4
|
)
|
|
|
|
1.0
|
|
|
|
|
1.2
|
|
Total operating expenses
|
|
|
|
897.6
|
|
|
|
|
825.4
|
|
|
|
|
8.7
|
|
|
|
|
70.4
|
|
|
|
|
72.0
|
|
Income from equity investees
|
|
|
|
80.1
|
|
|
|
|
64.1
|
|
|
|
|
25.0
|
|
|
|
|
6.3
|
|
|
|
|
5.6
|
|
Operating income
|
|
|
|
$
|
456.7
|
|
|
|
|
$
|
385.5
|
|
|
|
|
18.5
|
%
|
|
|
|
35.8
|
%
|
|
|
|
33.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
Jun 29, 2014
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
47.5
|
|
|
|
|
$
|
49.4
|
|
|
|
|
(3.8
|
)%
|
Licensed stores
|
|
|
|
1.7
|
|
|
|
|
1.1
|
|
|
|
|
54.5
|
|
CPG, foodservice and other
|
|
|
|
66.4
|
|
|
|
|
59.1
|
|
|
|
|
12.4
|
|
Total net revenues
|
|
|
|
115.6
|
|
|
|
|
109.6
|
|
|
|
|
5.5
|
|
Cost of sales including occupancy costs
|
|
|
|
72.7
|
|
|
|
|
65.9
|
|
|
|
|
10.3
|
|
Store operating expenses
|
|
|
|
26.1
|
|
|
|
|
27.9
|
|
|
|
|
(6.5
|
)
|
Other operating expenses
|
|
|
|
17.3
|
|
|
|
|
20.5
|
|
|
|
|
(15.6
|
)
|
Depreciation and amortization expenses
|
|
|
|
4.3
|
|
|
|
|
3.9
|
|
|
|
|
10.3
|
|
General and administrative expenses
|
|
|
|
8.3
|
|
|
|
|
10.3
|
|
|
|
|
(19.4
|
)
|
Total operating expenses
|
|
|
|
128.7
|
|
|
|
|
128.5
|
|
|
|
|
0.2
|
|
Operating loss
|
|
|
|
$
|
(13.1
|
)
|
|
|
|
$
|
(18.9
|
)
|
|
|
|
(30.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
|
$
|
189.7
|
|
|
|
|
$
|
194.3
|
|
|
|
|
(2.4
|
)%
|
Licensed stores
|
|
|
|
4.5
|
|
|
|
|
4.0
|
|
|
|
|
12.5
|
|
CPG, foodservice and other
|
|
|
|
218.0
|
|
|
|
|
189.8
|
|
|
|
|
14.9
|
|
Total net revenues
|
|
|
|
412.2
|
|
|
|
|
388.1
|
|
|
|
|
6.2
|
|
Cost of sales including occupancy costs
|
|
|
|
242.5
|
|
|
|
|
217.2
|
|
|
|
|
11.6
|
|
Store operating expenses
|
|
|
|
80.0
|
|
|
|
|
81.6
|
|
|
|
|
(2.0
|
)
|
Other operating expenses
|
|
|
|
57.1
|
|
|
|
|
58.1
|
|
|
|
|
(1.7
|
)
|
Depreciation and amortization expenses
|
|
|
|
12.2
|
|
|
|
|
11.3
|
|
|
|
|
8.0
|
|
General and administrative expenses
|
|
|
|
27.2
|
|
|
|
|
32.9
|
|
|
|
|
(17.3
|
)
|
Total operating expenses
|
|
|
|
419.0
|
|
|
|
|
401.1
|
|
|
|
|
4.5
|
|
Operating loss
|
|
|
|
$
|
(6.8
|
)
|
|
|
|
$
|
(13.0
|
)
|
|
|
|
(47.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information
|
|
The following supplemental information is provided for historical
and comparative purposes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
Jun 28, 2015
|
|
|
|
|
|
Jun 29, 2014
|
|
|
|
|
|
Change
|
Revenues
|
|
|
|
|
|
$3,091.0
|
|
|
|
|
|
$2,731.2
|
|
|
|
|
|
13%
|
Comparable Store Sales Growth(1)
|
|
|
|
|
|
8%
|
|
|
|
|
|
7%
|
|
|
|
|
|
|
Change in Transactions
|
|
|
|
|
|
4%
|
|
|
|
|
|
2%
|
|
|
|
|
|
|
Change in Ticket
|
|
|
|
|
|
4%
|
|
|
|
|
|
5%
|
|
|
|
|
|
|
(1) Includes only Starbucks company-operated stores
open 13 months or longer
|
|
|
|
|
|
|
|
|
Store Data:
|
|
|
|
|
|
|
|
|
|
|
Net stores opened (closed) and transferred during the period
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Three Quarters Ended
|
|
Stores open as of
|
|
|
|
Jun 28, 2015
|
|
Jun 29, 2014
|
|
Jun 28, 2015
|
|
Jun 29, 2014
|
|
Jun 28, 2015
|
|
Jun 29, 2014
|
Americas(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
68
|
|
|
69
|
|
|
187
|
|
|
155
|
|
|
8,582
|
|
|
8,233
|
Licensed stores
|
|
|
103
|
|
|
80
|
|
|
192
|
|
|
264
|
|
|
5,988
|
|
|
5,679
|
Total Americas
|
|
|
171
|
|
|
149
|
|
|
379
|
|
|
419
|
|
|
14,570
|
|
|
13,912
|
EMEA(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
(9
|
)
|
|
(3
|
)
|
|
(33
|
)
|
|
1
|
|
|
784
|
|
|
827
|
Licensed stores
|
|
|
67
|
|
|
40
|
|
|
184
|
|
|
132
|
|
|
1,507
|
|
|
1,275
|
Total EMEA
|
|
|
58
|
|
|
37
|
|
|
151
|
|
|
133
|
|
|
2,291
|
|
|
2,102
|
China/Asia Pacific (3,4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
82
|
|
|
45
|
|
|
1,219
|
|
|
159
|
|
|
2,351
|
|
|
1,041
|
Licensed stores
|
|
|
123
|
|
|
115
|
|
|
(604
|
)
|
|
384
|
|
|
2,888
|
|
|
3,384
|
Total China/Asia Pacific
|
|
|
205
|
|
|
160
|
|
|
615
|
|
|
543
|
|
|
5,239
|
|
|
4,425
|
All Other Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
|
(1
|
)
|
|
10
|
|
|
9
|
|
|
21
|
|
|
378
|
|
|
378
|
Licensed stores
|
|
|
(2
|
)
|
|
(12
|
)
|
|
(1
|
)
|
|
(20
|
)
|
|
41
|
|
|
46
|
Total All Other Segments
|
|
|
(3
|
)
|
|
(2
|
)
|
|
8
|
|
|
1
|
|
|
419
|
|
|
424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
431
|
|
|
344
|
|
|
1,153
|
|
|
1,096
|
|
|
22,519
|
|
|
20,863
|
(1) Americas store data includes the closure of 132
Target Canada licensed stores in the second quarter of fiscal 2015.
|
(2) EMEA store data has been adjusted for the transfer
of certain company-operated stores to licensed stores in the
second and fourth quarters of fiscal 2014.
|
(3) China/Asia Pacific store data includes the transfer
of 1,009 Japan stores from licensed stores to company-operated as
a result of the acquisition of Starbucks Japan in the first
quarter of fiscal 2015.
|
(4) China/Asia Pacific store data has been adjusted for
the transfer of certain company-operated stores to licensed stores
in the fourth quarter of fiscal 2014.
|
|
Non-GAAP Disclosure
In addition to the GAAP results provided in this release, the company
provides consolidated non-GAAP earnings per share ("non-GAAP EPS") for
Q4 and full year fiscal 2014, consolidated non-GAAP operating income,
non-GAAP operating margin and non-GAAP EPS for Q3 fiscal 2015,
China/Asia Pacific (“CAP”) segment non-GAAP operating income and
non-GAAP operating margin for Q3 fiscal 2015, and projected consolidated
non-GAAP EPS for Q4 and full year fiscal 2015. These non-GAAP financial
measures are not in accordance with, or alternatives for, generally
accepted accounting principles in the United States. The GAAP measures
most directly comparable to non-GAAP operating income, non-GAAP
operating margin, and non-GAAP EPS are operating income, operating
margin, and diluted net earnings per share, respectively. 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.
The consolidated Q4 and full year fiscal 2014 non-GAAP EPS excludes the
net benefit from transactions in Q4 fiscal 2014. The consolidated full
year fiscal 2014 non-GAAP EPS also excludes the benefit recognized from
a Kraft related litigation credit in Q1 fiscal 2014. The net benefit
from transactions in Q4 fiscal 2014 includes a gain on the sale of our
Malaysia equity method investment, partially offset by a loss on the
sale of our Australia retail operations and transaction costs incurred
related to the acquisition of Starbucks Japan. Management excludes these
items because they believe the impacts do not reflect expected future
gains or 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.
The consolidated Q3 fiscal 2015 non-GAAP financial measures exclude
certain Starbucks Japan acquisition-related items, specifically
amortization expense from acquired intangible assets and transaction and
integration costs. The Q3 fiscal 2015 CAP segment non-GAAP financial
measures exclude the amortization expense from acquired intangible
assets related to the acquisition of Starbucks Japan. Management
excludes the acquisition-related transaction costs described above
because they believe these items 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. In addition, management believes it is useful to exclude
the integration costs and the amortization of the acquired intangible
assets when evaluating performance because they are not representative
of our core business operations. Although these items will affect
earnings per share beyond fiscal 2015, the majority of these costs will
be recognized over a finite period of time. More specifically, the
amounts of the acquired intangible assets are specific to the
transaction and the related amortization was fixed at the time of
acquisition and generally cannot subsequently be changed or influenced
by management in a future period. Therefore, these items do not
contribute to a meaningful evaluation of the company’s fiscal 2015
operating performance or comparisons of the company’s fiscal 2015
operating performance to the company’s past operating performance or,
with respect to the CAP segment, to a meaningful evaluation of the CAP
segment’s operating performance or comparisons to the CAP segment’s past
operating performance.
The projected consolidated non-GAAP EPS for Q4 and full year fiscal 2015
exclude certain Starbucks Japan acquisition-related items comprised of
projected amortization expense from acquired intangible assets and
transaction and integration costs, as well as certain losses and costs
related to the redemption of the company's $550 million of 6.250% 2017
Senior Notes in Q4 fiscal 2015. Losses and costs related to the
redemption are included as debt extinguishment-related items. The
projected consolidated non-GAAP EPS for full year fiscal 2015 also
excludes the gain in Q1 related to the fair value adjustment of
Starbucks 39.5% ownership in Starbucks Japan prior to the acquisition.
Management is excluding the Starbucks Japan acquisition-related items
from our projected non-GAAP measures for the same reasons described
above. Additionally, management is excluding the fair value gain and
debt extinguishment-related items because they believe these items do
not reflect future gains, losses or 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
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
Jun 28, 2015
|
|
Jun 29, 2014
|
|
Change
|
Consolidated
|
|
|
|
|
|
|
|
|
Operating income, as reported (GAAP)
|
|
|
|
$
|
938.6
|
|
|
$
|
768.5
|
|
|
22.1
|
%
|
Starbucks Japan acquisition-related items - other(1)
|
|
|
|
11.5
|
|
|
—
|
|
|
|
Non-GAAP operating income
|
|
|
|
$
|
950.1
|
|
|
$
|
768.5
|
|
|
23.6
|
%
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported (GAAP)
|
|
|
|
19.2
|
%
|
|
18.5
|
%
|
|
70
|
bps
|
Starbucks Japan acquisition-related items - other(1)
|
|
|
|
0.2
|
|
|
—
|
|
|
|
Non-GAAP operating margin
|
|
|
|
19.5
|
%
|
|
18.5
|
%
|
|
100
|
bps
|
|
|
|
|
|
|
|
|
|
Diluted net earnings per share, as reported (GAAP)
|
|
|
|
$
|
0.41
|
|
|
$
|
0.34
|
|
|
20.6
|
%
|
Starbucks Japan acquisition-related items - other(1)
|
|
|
|
0.01
|
|
|
—
|
|
|
|
Non-GAAP net earnings per share
|
|
|
|
$
|
0.42
|
|
|
$
|
0.34
|
|
|
23.5
|
%
|
|
|
|
|
|
|
|
|
|
China/Asia Pacific (CAP)
|
|
|
|
|
|
|
|
|
Operating income, as reported (GAAP)
|
|
|
|
$
|
150.0
|
|
|
$
|
100.8
|
|
|
48.8
|
%
|
Starbucks Japan amortization expense of acquired intangibles
|
|
|
|
11.0
|
|
|
—
|
|
|
|
Non-GAAP operating income
|
|
|
|
$
|
161.0
|
|
|
$
|
100.8
|
|
|
59.7
|
%
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported (GAAP)
|
|
|
|
23.0
|
%
|
|
35.0
|
%
|
|
(1,200
|
) bps
|
Starbucks Japan amortization expense of acquired intangibles
|
|
|
|
1.7
|
|
|
—
|
|
|
|
Non-GAAP operating margin
|
|
|
|
24.7
|
%
|
|
35.0
|
%
|
|
(1,030
|
) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes ongoing amortization expense of acquired
intangible assets and transaction and integration costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
|
Consolidated
|
|
|
|
(Projected)
|
|
(As Reported)
|
|
Change
|
Diluted net earnings per share (GAAP)
|
|
|
|
$0.38 - $0.39
|
|
|
$
|
0.39
|
|
|
(3
|
%) - 0%
|
Net benefit from transactions in Q4 2014(1)
|
|
|
|
—
|
|
|
(0.02
|
)
|
|
|
Starbucks Japan acquisition-related items - other(2)
|
|
|
|
0.01
|
|
|
—
|
|
|
|
Debt extinguishment-related items(3)
|
|
|
|
0.03
|
|
|
—
|
|
|
|
Non-GAAP net earnings per share
|
|
|
|
$0.42 - $0.43
|
|
|
$
|
0.37
|
|
|
14
|
% - 16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
Sep 27, 2015
|
|
Sep 28, 2014
|
|
|
Consolidated
|
|
|
|
(Projected)
|
|
(As Reported)
|
|
Change
|
Diluted net earnings per share (GAAP)
|
|
|
|
$1.77 - $1.78
|
|
|
$
|
1.35
|
|
|
31
|
% - 32%
|
Litigation credit
|
|
|
|
—
|
|
|
(0.01
|
)
|
|
|
Net benefit from transactions in Q4 2014(1)
|
|
|
|
—
|
|
|
(0.02
|
)
|
|
|
Starbucks Japan acquisition-related items - gain(4)
|
|
|
|
(0.26
|
)
|
|
—
|
|
|
|
Starbucks Japan acquisition-related items - other(2)
|
|
|
|
0.03
|
|
|
—
|
|
|
|
Debt extinguishment-related items(3)
|
|
|
|
0.03
|
|
|
—
|
|
|
|
Non-GAAP net earnings per share
|
|
|
|
$1.57 - $1.58
|
|
|
$
|
1.33
|
|
|
18
|
% - 19%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The net benefit from transactions in Q4 2014
relates primarily to a $0.02 gain on the sale of our Malaysia
equity method investment, partially offset by a loss on the sale
of our Australia retail operations and transaction costs incurred
in Q4 2014 related to the acquisition of Starbucks Japan.
|
(2) Includes ongoing amortization expense of acquired
intangible assets and transaction and integration costs.
|
(3) Represents the loss on extinguishment of debt
($61.1M), which is comprised of the cost of the optional
redemption provision, unamortized debt issuance costs, and
unamortized discount associated with the $550 million of 6.250%
2017 Senior Notes redeemed in Q4 2015, as well as the related
unamortized interest rate hedge loss ($2.0M), which will be
recorded in interest expense.
|
(4) Gain represents the fair value adjustment of
Starbucks preexisting 39.5% ownership interest in Starbucks Japan
upon acquisition.
|
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20150723006370/en/
Source: Starbucks Corporation
Starbucks
Investor Relations:
JoAnn DeGrande,
206-318-7118
investorrelations@starbucks.com
or
Media:
Alisha
Damodaran, 206-318-7100
press@starbucks.com