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Reaffirms Seven Strategies to Grow Market Cap to $100 Billion
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Previews New Delivery Options through “Green Apron” Delivery Service
to Debut in New York City; Announces Third-Party Delivery Through
Agreement with Postmates
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Continues to Double Down on Investments in its People, Including $233
Million in Healthcare Benefits and $210 Million in Bean Stock
in FY14
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Announces Commitment to Hire 10,000 Opportunity Youth in the Next
Three Years; Reaffirms its Commitment to Hire 10,000 Veterans and
Active Duty Military Spouses Over the Next Five Years; Aims to
Graduate 25,000 U.S. partners by 2025 Through the Starbucks College
Achievement Plan
SEATTLE--(BUSINESS WIRE)--Mar. 18, 2015--
Starbucks Corporation (NASDAQ:SBUX) today kicked off its 23rd
Annual Meeting of Shareholders, with more than 2,800 partners,
shareholders, invited guests and board members in attendance. Together
with the Starbucks leadership team, Howard Schultz, chairman and ceo of
Starbucks, will honor the accomplishments of the company over the past
year of delivering record financial results as the company heads toward
achieving a $100 billion market cap.
“When I look back at the last 23 years of our public life or Starbucks
44-year history, so much of our success is deeply rooted in the values,
culture and guiding principles of who we are, who we’ve been and who we
are striving to be as a company,” said Howard Schultz, chairman and ceo
of Starbucks Corporation. “The long history of Starbucks is steeped in
trying to build a different type of business proposition from Day One:
one that achieves the balance between profitability and a social
conscience. And to continually ask ourselves what it takes to build a
great enduring company. Even as our share price hits new all-time highs,
we have never lost sight of this vision, and our goal of bringing our
people along with us on the journey and sharing our success.”
FY14 Financial Highlights / Achievements
Starbucks has reported record revenues of $16.4 billion (11 percent
growth) and record non-GAAP earnings per share of $2.661 (21
percent growth on a non-GAAP basis1) in fiscal 2014; $3.1
billion in non-GAAP operating income2 (25 percent growth on a
non-GAAP basis2) in fiscal 2014 ; and $1.6 billion returned
to shareholders in the form of dividends and share repurchases.
Starbucks also invested $233 million in healthcare benefits and $210
million in Bean Stock in FY14.
New Game-Changing Advances in Digital Customer Experience
As Starbucks continues to find opportunities to meet customers where
they are in their day while providing both convenience and brand
engagement, the company will elaborate on plans to roll out Mobile Order
& Pay. A mobile ordering feature integrated into Starbucks world-class
mobile app and My Starbucks Rewards loyalty program, Mobile Order & Pay
officially launched in the Pacific Northwest this week and Starbucks
remains on track for a full national roll-out in 2015. This expansion
will also lay the groundwork for Starbucks to begin testing various food
and beverage delivery options in the coming year.
In an effort to integrate service solutions that meet the “on demand”
customer, Starbucks will unveil two complementary delivery models
including:
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A strategic collaboration with Postmates, a leading on-demand delivery
service, which will allow customers to order their food and beverage
items via the Starbucks® mobile app and receive on-demand delivery
within defined areas. This rapidly growing organization – operating in
22 markets with more than 1.5 million deliveries to date – brings
robust logistics technology, courier-enabled delivery and quality of
service expertise. This Starbucks delivery pilot will begin in Seattle
in the second half of 2015.
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A “Green Apron” barista delivery option enabling customers within
specified office-buildings to order food and beverages for convenient
delivery by Starbucks baristas. Supported by its world class
real-estate capabilities, this model allows Starbucks to identify
targeted solutions for environments that can benefit from an
integrated service model. This Starbucks delivery test will begin in
New York the second half of 2015.
Starbucks has the unique ability to leverage its store platforms, suite
of digital offerings and mobile commerce innovation to provide delivery
options as a natural extension of the Starbucks Experience.
Leading Innovation in Coffee and Tea, From Bean to Cup
Starbucks will outline its plans to continue to build its leadership
position in coffee including the sourcing, roasting, brewing and serving
of its handcrafted beverages. In addition to providing its customers
with a portfolio of products that reflect its core espresso craft like
the Flat White, the company remains committed to expanding its line of
super-premium, small lot Starbucks Reserve® coffee. Starbucks plans to
open its next Roastery location in Asia in 2016 and is actively looking
for real estate for its second Roastery in the United States.
Additionally, Starbucks will announce its achievement of ethically
sourcing 99 percent of its coffee in FY15 supported by its 15 year
relationship with Conservation International.
In addition to coffee, Starbucks will unveil its strategy to grow and
develop the Teavana® brand and will announce plans to offer Teavana teas
in Starbucks stores in China/Asia Pacific in 2016. Teavana Shaken Iced
Teas, Teavana Oprah Chai and Teavana hot brewed teas in Starbucks stores
have already shown strong revenue contribution, and tea remains the
fastest growing beverage category within Starbucks North America
business.
Creating a Pathway for Opportunity by Building a Purpose-Driven
Workforce
Starbucks will also outline its commitment to attracting and retaining
people who share in the company’s mission to nurture and inspire the
human spirit, by investing in partners who will deliver a superior
customer experience.
As part of this, Starbucks has committed to hiring 10,000 veterans and
military spouses and today will announce that it has already placed more
than 3,300 in jobs to leverage their leadership and dedication to
operational excellence. Starbucks will also outline its opportunity to
address unemployment in young people by committing to hire at least
10,000 over the next three years where Starbucks will focus on creating
new career opportunities for young adults. And, Starbucks will today
outline its ambitious plans to have at least 25,000 college graduates by
2025 through the Starbucks College Achievement Plan program, and
announced that nearly 2,000 partners have already enrolled in the
program. The company’s hope is that a large number of these graduates
will be “Opportunity Youth:” young people between the ages of 16-24 who
are not enrolled in school or are out of the workforce.
Meaningful employment and a top-notch education is the foundation
through which Starbucks can help create a sustainable future for its
partners whether they build on a rewarding career with Starbucks or if
their aspirations take them on a different journey.
A Conversation About Race Relations in America
In the second half of the Annual Meeting of Shareholders, Schultz plans
to address the subject of race relations in America and unconscious bias
through a personal reflection of his time spent with more than 2,000
partners during Partner Open Forums in Seattle, St. Louis, Oakland, New
York, Los Angeles, and Chicago. Schultz plans to announce that Starbucks
and USA TODAY will jointly publish national inserts called “Race
Together,” and launch a digital hub at racetogether.usatoday.com,
which will all serve as learning tools and conversation starters for
Starbucks customers, partners and the nation to encourage a greater
understanding, empathy, and compassion toward one another. More than 2
million of these inserts will be available across the country in USA
TODAY newspapers, and special standalone "Race Together" inserts will
also be available in Starbucks® company-operated stores
beginning on Friday, March 20.
Joining Schultz on stage will be Starbucks board member Mellody Hobson,
who will deliver her acclaimed speech, entitled "Color Blind or Color
Brave.” This is expected to be one of the signature moments of the
meeting, and will demonstrate the commitment the company has to equal
and respectful opportunity for all.
“Doing what is right for society and what is right for business cannot
be mutually exclusive endeavors. Today more than ever, companies such as
Starbucks must use their resources to create opportunities for their
people as well as for the communities they serve,” said Schultz. “Last
year on this very stage, I posed the question: ‘What is the role and
responsibility of a for-profit, public company in today’s society?’ This
year, I hope that we have answered that question and showcased how
Starbucks can truly use our scale for good and play a role in changing
the narrative and national conversation to create opportunities for all.”
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 www.starbucks.com
and find images, b-roll and a LIVE blog of the Annual Meeting of
Shareholders at http://news.starbucks.com.
Forward-Looking Statements
Certain statements contained herein are not based on historical fact and
are "forward-looking statements" within the meaning of the applicable
securities laws and regulations. Generally, these statements can be
identified by the use of words such as "anticipate," "believe," "could,"
"estimate," "expect," "feel," "forecast," "intend," "may," "plan,"
"potential," "project," "should," "will," "would," and similar
expressions intended to identify forward-looking statements, although
not all forward-looking statements contain these identifying words.
These statements are based on information available to Starbucks as of
the date hereof, and Starbucks actual results or performance could
differ materially from those stated or implied, due to risks and
uncertainties associated with its business. These risks and
uncertainties include: 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, 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.
1 Non-GAAP. FY14 GAAP EPS of $2.71 includes a $0.02 per share
litigation credit related to the arbitration with Kraft Foods Global,
Inc. and a $0.03 net benefit from transactions in Q4 FY14. The net
benefit from transactions in Q4 FY14 relates primarily to a $0.05 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 FY14 related to the planned acquisition of
Starbucks Japan. The FY14 EPS growth rate is calculated over FY13
non-GAAP EPS of $2.19. FY13 GAAP EPS of $0.01 includes a $2.25 per share
litigation charge resulting from the conclusion of the arbitration with
Kraft Foods Global, Inc., a $0.03 gain on sale of our Mexico joint
venture and a $0.03 gain on sale of our Chile and Argentina joint
ventures.
2 Non-GAAP. FY14 GAAP operating income of $3,081.1 million
includes a pre-tax credit of $20.2 million related to the arbitration
with Kraft Foods Global, Inc. and $2.4 million of costs from
transactions in Q4 FY14. The FY14 operating income growth rate is
calculated over FY13 non-GAAP operating income of $2,458.7. FY13 GAAP
operating loss of $325.4 million includes a pre-tax charge of $2,784.1
million resulting from the conclusion of the arbitration with Kraft
Foods Global, Inc.
Source: Starbucks Corporation
Starbucks Corporation
Investor Relations:
JoAnn
DeGrande, 206-318-7118
investorrelations@starbucks.com
or
Media:
Linda
Mills, 206-318-7100
press@starbucks.com