Q4 Comparable Store Sales Up 5% in Americas, 4% in the U.S., 6% in China
and 4% Globally
Q4 GAAP EPS Up 26% to a Record $0.54; Record Non-GAAP EPS of $0.56
Includes $0.06 for Extra Week
New Stores Opened in the U.S. and China in FY16 Deliver Record AUV's,
ROI and Profitability
Company Issues Strong Outlook for Fiscal 2017
Board of Directors Approves 25% Increase in Quarterly Dividend to $0.25
Per Share
SEATTLE--(BUSINESS WIRE)--
Starbucks Corporation (NASDAQ: SBUX) today reported financial results
for its 14-week fiscal fourth quarter and 53-week fiscal year ended
October 2, 2016. Fiscal 2016 and fiscal 2015 GAAP results include items
which are excluded from non-GAAP results. Please refer to the
reconciliation of GAAP measures to non-GAAP measures at the end of this
release for more information.
Q4 Fiscal 2016 Highlights:
-
U.S. comparable store sales increase of 4% was comprised of 6%
increase in average ticket and 1% decrease in traffic. After adjusting
for the estimated impact of order consolidation related to the new
Starbucks Rewards™ loyalty program, average ticket grew 4% and traffic
grew 1%.
-
Consolidated net revenues grew 16% to $5.7 billion
-
Consolidated operating income increased 27% to $1.2 billion
-
Consolidated operating margin expanded 180 basis points to 21.5%
-
GAAP EPS increased 26% to $0.54 per share and included $0.06 related
to the extra week in Q4 FY16
-
Non-GAAP EPS of $0.56 included $0.06 related to the extra week in
Q4 FY16. Excluding the extra week, non-GAAP EPS of $0.50 grew 16%
over Q4 FY15 non-GAAP EPS
-
The company opened 690 net new stores in the quarter, bringing total
stores to 25,085 in 75 countries worldwide
-
Mobile Order and Pay represented 6% of U.S. transactions in the
quarter, up from 5% in the prior quarter
Fiscal Year 2016 Highlights:
-
Global comparable store sales increased 5%, comprised of a 6% increase
in the Americas segment and a 3% increase in the China/Asia Pacific
segment. Comparable store sales in the EMEA segment were flat.
-
Consolidated net revenues grew 11% to $21.3 billion
-
Consolidated operating income increased 16% to $4.2 billion
-
Consolidated operating margin expanded 80 basis points to 19.6%
-
Company reports record 53- and 52-week, GAAP and non-GAAP revenue,
operating income and operating margin
-
GAAP EPS increased 4% to $1.90 per share and included $0.06 related to
the extra week in Q4 FY16
-
Non-GAAP EPS of $1.91 included $0.06 related to the extra week in
Q4 FY16. Excluding the extra week, non-GAAP EPS of $1.85 grew 17%
over FY15 non-GAAP EPS
-
The company opened 2,042 net new stores globally in fiscal 2016,
including the first Starbucks stores in Cambodia, Kazakhstan,
Luxembourg, Andorra, South Africa, Slovakia, and Trinidad and Tobago
“Starbucks record Q4 and fiscal 2016 financial and operating results in
the face of ongoing economic, consumer and geopolitical headwinds, and
the significant investments we continue to make in our people and our
business, once again demonstrate the power, relevance and resilience of
the Starbucks business and brand,” said Howard Schultz, Starbucks
chairman and ceo. “The trust and confidence our customers have in the
Starbucks brand - and in our store partners - is propelling our business
forward in markets and channels around the world as never before.”
"Starbucks Q4 of fiscal 2016 was the most profitable quarter - capping
off the most profitable year - in our more than 24 years as a public
company," said Scott Maw, cfo. "The strength and health of our business
enables us to both fund profitable growth and return significant cash
back to shareholders - a record $3.2 billion in fiscal 2016 alone."
Fourth Quarter Fiscal 2016 Summary
|
|
|
Quarter Ended Oct 2, 2016
|
|
Comparable Store Sales(1)
|
|
Sales Growth
|
|
Change in Transactions
|
|
Change in Ticket
|
|
Consolidated(2)
|
|
4%
|
|
(1)%
|
|
5%
|
|
Americas
|
|
5%
|
|
(1)%
|
|
6%
|
|
CAP(2)
|
|
1%
|
|
0%
|
|
2%
|
|
EMEA
|
|
(1)%
|
|
0%
|
|
(1)%
|
|
(1)
|
|
Includes only Starbucks company-operated stores open 13 months or
longer. For fiscal 2016, comparable store sales percentages were
calculated excluding the 53rd week.
|
|
(2)
|
|
Beginning in December of fiscal 2016, comparable store sales include
the results of the 1,009 company-operated stores acquired as part of
the acquisition of Starbucks Japan in the first quarter of fiscal
2015.
|
|
|
|
Quarter Ended
|
|
Change
|
|
Operating Results
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|
|
($ in millions, except per share amounts)
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
Net New Stores
|
|
690
|
|
524
|
|
166
|
|
Revenues
|
|
$5,711.2
|
|
$4,914.8
|
|
16%
|
|
Operating Income
|
|
$1,227.5
|
|
$969.4
|
|
27%
|
|
Operating Margin
|
|
21.5%
|
|
19.7%
|
|
180 bps
|
|
EPS
|
|
$0.54
|
|
$0.43
|
|
26%
|
Consolidated net revenues were $5.7 billion in Q4 FY16, an increase of
16% over Q4 FY15. The increase was primarily driven by the impact of the
53rd week in Q4 FY16, incremental revenues from the opening of 2,042 net
new stores over the past 12 months, and a 4% increase in global
comparable store sales.
Consolidated operating income grew 27% to $1,227.5 million in Q4 FY16,
up from $969.4 million in Q4 FY15. Consolidated operating margin
expanded 180 basis points to 21.5% primarily due to sales leverage, the
impact of the 53rd week in Q4 FY16, and lower commodity costs, primarily
coffee. These increases were partially offset by higher salaries and
benefits and investments in our partners (employees) and digital
platforms.
Q4 Americas Segment Results
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|
|
($ in millions)
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
Net New Stores
|
|
307
|
|
233
|
|
74
|
|
Revenues
|
|
$3,968.1
|
|
$3,383.8
|
|
17%
|
|
Operating Income
|
|
$1,096.9
|
|
$840.6
|
|
30%
|
|
Operating Margin
|
|
27.6%
|
|
24.8%
|
|
280 bps
|
Net revenues for the Americas segment were $4.0 billion in Q4 FY16, an
increase of 17% over Q4 FY15. The increase was driven by the impact of
the 53rd week in Q4 FY16, a 5% increase in comparable store sales, and
incremental revenues from 804 net new store openings over the past 12
months.
Operating income of $1,096.9 million in Q4 FY16 grew 30% versus $840.6
million in Q4 FY15. Operating margin of 27.6% expanded 280 basis points
primarily due to sales leverage and the impact of the 53rd week in Q4
FY16. Partially offsetting this expansion were increased investments in
our store partners (employees).
Q4 China/Asia Pacific Segment Results
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|
|
($ in millions)
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
Net New Stores
|
|
316
|
|
223
|
|
93
|
|
Revenues
|
|
$839.2
|
|
$652.2
|
|
29%
|
|
Operating Income
|
|
$192.4
|
|
$129.8
|
|
48%
|
|
Operating Margin
|
|
22.9%
|
|
19.9%
|
|
300 bps
|
Net revenues for the China/Asia Pacific segment grew 29% over Q4 FY15 to
$839.2 million in Q4 FY16. The increase was primarily driven by
incremental revenues from 981 net new store openings over the past 12
months, the impact of the 53rd week in Q4 FY16, and favorable foreign
currency translation.
Operating income grew 48% over Q4 FY15 to $192.4 million in Q4 FY16.
Operating margin expanded 300 basis points to 22.9% primarily driven by
changes to business tax structures in certain markets, sales leverage,
higher income from our joint venture operations, and the impact of the
53rd week in Q4 FY16. Partially offsetting this expansion was the impact
of foreign currency translation.
Q4 EMEA Segment Results
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|
|
($ in millions)
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
Net New Stores
|
|
77
|
|
71
|
|
6
|
|
Revenues
|
|
$270.2
|
|
$308.3
|
|
(12)%
|
|
Operating Income
|
|
$45.8
|
|
$53.1
|
|
(14)%
|
|
Operating Margin
|
|
17.0%
|
|
17.2%
|
|
(20) bps
|
Net revenues for the EMEA segment were $270.2 million in Q4 FY16, a 12%
decrease versus Q4 FY15. The decrease was primarily driven by the shift
to more licensed stores in the region, which includes the absence of
revenue related to the sale of our Germany retail operations in Q3 FY16
and the conversion of certain stores to licensed. Partially offsetting
the decrease were incremental revenues from the opening of 294 net new
licensed stores over the past 12 months.
Operating income decreased 14% to $45.8 million in Q4 FY16, down from
$53.1 million in Q4 FY15. Operating margin declined 20 basis points to
17.0%, primarily due to unfavorable foreign currency exchange and sales
deleverage in certain company-operated stores. The margin decline was
partially offset by sales leverage driven by the shift in the portfolio
towards more licensed stores and the impact of the 53rd week in Q4 FY16.
Q4 Channel Development Segment Results
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|
|
($ in millions)
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
Revenues
|
|
$518.5
|
|
$456.7
|
|
14%
|
|
Operating Income
|
|
$244.3
|
|
$197.3
|
|
24%
|
|
Operating Margin
|
|
47.1%
|
|
43.2%
|
|
390 bps
|
Net revenues for the Channel Development segment grew 14% over Q4 FY15
to $518.5 million in Q4 FY16, primarily driven by the impact of the 53rd
week in Q4 FY16 and increased sales of premium single-serve products.
Operating income of $244.3 million in Q4 FY16 increased 24% compared to
Q4 FY15. Operating margin increased 390 basis points to 47.1%, primarily
driven by lower coffee costs and higher income from the North American
Coffee Partnership.
Q4 All Other Segments Results
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|
|
($ in millions)
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
Net New Stores
|
|
(10)
|
|
(3)
|
|
(7)
|
|
Revenues
|
|
$115.2
|
|
$113.8
|
|
1%
|
|
Operating Loss
|
|
$(10.1)
|
|
$(17.7)
|
|
(43)%
|
|
|
|
|
|
|
|
|
Year to Date Financial Results
|
|
|
|
|
|
|
|
|
|
|
Year Ended Oct 2, 2016
|
|
Comparable Store Sales(1)
|
|
Sales Growth
|
|
Change in Transactions
|
|
Change in Ticket
|
|
Consolidated(2)
|
|
5%
|
|
1%
|
|
4%
|
|
Americas
|
|
6%
|
|
1%
|
|
5%
|
|
CAP(2)
|
|
3%
|
|
1%
|
|
2%
|
|
EMEA
|
|
0%
|
|
1%
|
|
0%
|
|
(1)
|
|
Includes only Starbucks company-operated stores open 13 months or
longer. For fiscal 2016, comparable store sales percentages were
calculated excluding the 53rd week.
|
|
(2)
|
|
Beginning in December of fiscal 2016, comparable store sales include
the results of the 1,009 company-operated stores acquired as part of
the acquisition of Starbucks Japan in the first quarter of fiscal
2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Change
|
|
Operating Results
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|
|
($ in millions, except per share amounts)
|
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
Net New Stores(1)
|
|
2,042
|
|
1,677
|
|
365
|
|
Revenues
|
|
$21,315.9
|
|
$19,162.7
|
|
11%
|
|
Operating Income
|
|
$4,171.9
|
|
$3,601.0
|
|
16%
|
|
Operating Margin
|
|
19.6%
|
|
18.8%
|
|
80 bps
|
|
EPS
|
|
$1.90
|
|
$1.82
|
|
4%
|
|
(1)
|
|
Fiscal 2015 net new stores include the closure of 132 Target Canada
licensed stores.
|
|
|
|
|
Fiscal 2017 Targets
The company issues the following full year FY17 targets; year over year
growth is based on prior year 52-week non-GAAP results. Please refer to
the reconciliation of GAAP measures to non-GAAP measures at the end of
this release.
-
Approximately 2,100 net new stores globally
-
Mid-single digit comparable store sales growth globally
-
Consolidated revenue growth in the double digits
-
GAAP EPS range of $2.09 to $2.11, non-GAAP EPS range of $2.12 to $2.14
The company will continue its practice of providing detail regarding its
business outlook during its regularly scheduled quarterly earnings
conference calls, including select quarterly and segment information.
The company's earnings press release will contain select full year
consolidated targets only, as outlined above.
Company Updates
-
Starbucks announced it will open its fourth Starbucks Reserve Roastery
and Tasting Room in Japan in 2018. In addition to Seattle, the Tokyo
location will join Roasteries in Shanghai in 2017 and New York in
2018, and will be designed in collaboration with world-renowned
architect Kengo Kuma.
-
The company entered its 75th country globally in Q4, opening its first
store in the country of Trinidad and Tobago in partnership with
Prestige Holdings Ltd. The company also opened its 1,000th Starbucks
store in Latin America in Q4, in the Colombian city of Medellin.
-
Effective in October, the company promoted Belinda Wong from president
to chief executive officer of Starbucks China. Wong has been
instrumental in Starbucks unprecedented growth in China – from 400
stores in 2011 to over 2,400 stores today. In this role, Wong will
oversee Starbucks plans to open and operate 5,000 stores in China by
2021.
-
In addition to bringing handcrafted flavor to cold coffee, Starbucks
recently became the largest retailer to offer Nitro Cold Brew, an
innovative new cold coffee beverage infused with nitrogen to create an
ultra-creamy texture that has been enthusiastically embraced by
Starbucks customers. More than 500 Starbucks stores in coffee-forward
markets across the US are now including Starbucks Nitro Cold Brew on
menus.
-
In September, Starbucks debuted "Upstanders," an original series
sharing real stories of humanity which aims to inspire acts of
compassion, citizenship and civility. Multi-platform distribution
channels were utilized, including Starbucks Mobile App and Starbucks
online and in-store digital network.
-
The company repurchased 7.3 million shares of common stock in Q4 FY16;
118 million shares remain available for purchase under current
authorizations.
-
The Board of Directors declared a cash dividend of $0.25 per share, a
25% increase, payable on December 2, 2016 to shareholders of record as
of November 17, 2016.
Conference Call
Starbucks will hold 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 until end of day Saturday,
December 3, 2016.
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,
resilience and potential of our business, operations and brand, our
innovation, growth and growth opportunities and related investments,
return to shareholders, our strategic, operational and digital moves,
our outlook for fiscal 2017, our long term financial targets, earnings
per share, revenues, operating margins, capital expenditures, tax rate,
anticipated costs related to the integration of Starbucks Japan,
comparable store sales and transactions, 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 to
the extent we experience a material breach, potential negative effects
of incidents involving food-borne illnesses, food tampering, food
contamination or mislabeling, material failures of our information
technology systems, costs associated with, and the successful execution
of, the company’s initiatives and plans, including the integration of
Starbucks Japan, the acceptance of the company’s products by our
customers, the impact of competition, coffee, dairy and other raw
materials 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 27, 2015.
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
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
|
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
As a % of total
net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
4,507.8
|
|
|
$
|
3,886.6
|
|
|
16.0
|
%
|
|
78.9
|
%
|
|
79.1
|
%
|
|
Licensed stores
|
|
593.2
|
|
|
481.4
|
|
|
23.2
|
|
|
10.4
|
|
|
9.8
|
|
|
CPG, foodservice and other
|
|
610.2
|
|
|
546.8
|
|
|
11.6
|
|
|
10.7
|
|
|
11.1
|
|
|
Total net revenues
|
|
5,711.2
|
|
|
4,914.8
|
|
|
16.2
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
2,254.2
|
|
|
1,982.6
|
|
|
13.7
|
|
|
39.5
|
|
|
40.3
|
|
|
Store operating expenses
|
|
1,562.3
|
|
|
1,378.6
|
|
|
13.3
|
|
|
27.4
|
|
|
28.0
|
|
|
Other operating expenses
|
|
122.1
|
|
|
127.9
|
|
|
(4.5
|
)
|
|
2.1
|
|
|
2.6
|
|
|
Depreciation and amortization expenses
|
|
249.9
|
|
|
234.3
|
|
|
6.7
|
|
|
4.4
|
|
|
4.8
|
|
|
General and administrative expenses
|
|
401.2
|
|
|
303.9
|
|
|
32.0
|
|
|
7.0
|
|
|
6.2
|
|
|
Total operating expenses
|
|
4,589.7
|
|
|
4,027.3
|
|
|
14.0
|
|
|
80.4
|
|
|
81.9
|
|
|
Income from equity investees
|
|
106.0
|
|
|
81.9
|
|
|
29.4
|
|
|
1.9
|
|
|
1.7
|
|
|
Operating income
|
|
1,227.5
|
|
|
969.4
|
|
|
26.6
|
|
|
21.5
|
|
|
19.7
|
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
(61.1
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
(1.2
|
)
|
|
Interest income and other, net
|
|
12.5
|
|
|
6.4
|
|
|
95.3
|
|
|
0.2
|
|
|
0.1
|
|
|
Interest expense
|
|
(24.7
|
)
|
|
(18.2
|
)
|
|
35.7
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
Earnings before income taxes
|
|
1,215.3
|
|
|
896.5
|
|
|
35.6
|
|
|
21.3
|
|
|
18.2
|
|
|
Income tax expense
|
|
413.5
|
|
|
244.0
|
|
|
69.5
|
|
|
7.2
|
|
|
5.0
|
|
|
Net earnings including noncontrolling interests
|
|
801.8
|
|
|
652.5
|
|
|
22.9
|
|
|
14.0
|
|
|
13.3
|
|
|
Net earnings attributable to noncontrolling interests
|
|
0.8
|
|
|
—
|
|
|
nm
|
|
—
|
|
|
—
|
|
|
Net earnings attributable to Starbucks
|
|
$
|
801.0
|
|
|
$
|
652.5
|
|
|
22.8
|
|
|
14.0
|
%
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share - diluted
|
|
$
|
0.54
|
|
|
$
|
0.43
|
|
|
25.6
|
%
|
|
|
|
|
|
Weighted avg. shares outstanding - diluted
|
|
1,478.4
|
|
|
1,504.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
$
|
0.25
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
34.7
|
%
|
|
35.5
|
%
|
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
|
|
|
34.0
|
%
|
|
27.2
|
%
|
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
|
|
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
As a % of total
net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
16,844.1
|
|
|
$
|
15,197.3
|
|
|
10.8
|
%
|
|
79.0
|
%
|
|
79.3
|
%
|
|
Licensed stores
|
|
2,154.2
|
|
|
1,861.9
|
|
|
15.7
|
|
|
10.1
|
|
|
9.7
|
|
|
CPG, foodservice and other
|
|
2,317.6
|
|
|
2,103.5
|
|
|
10.2
|
|
|
10.9
|
|
|
11.0
|
|
|
Total net revenues
|
|
21,315.9
|
|
|
19,162.7
|
|
|
11.2
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
8,511.1
|
|
|
7,787.5
|
|
|
9.3
|
|
|
39.9
|
|
|
40.6
|
|
|
Store operating expenses
|
|
6,064.3
|
|
|
5,411.1
|
|
|
12.1
|
|
|
28.4
|
|
|
28.2
|
|
|
Other operating expenses
|
|
545.4
|
|
|
522.4
|
|
|
4.4
|
|
|
2.6
|
|
|
2.7
|
|
|
Depreciation and amortization expenses
|
|
980.8
|
|
|
893.9
|
|
|
9.7
|
|
|
4.6
|
|
|
4.7
|
|
|
General and administrative expenses
|
|
1,360.6
|
|
|
1,196.7
|
|
|
13.7
|
|
|
6.4
|
|
|
6.2
|
|
|
Total operating expenses
|
|
17,462.2
|
|
|
15,811.6
|
|
|
10.4
|
|
|
81.9
|
|
|
82.5
|
|
|
Income from equity investees
|
|
318.2
|
|
|
249.9
|
|
|
27.3
|
|
|
1.5
|
|
|
1.3
|
|
|
Operating income
|
|
4,171.9
|
|
|
3,601.0
|
|
|
15.9
|
|
|
19.6
|
|
|
18.8
|
|
|
Gain resulting from acquisition of joint venture
|
|
—
|
|
|
390.6
|
|
|
(100.0
|
)
|
|
—
|
|
|
2.0
|
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
(61.1
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
Interest income and other, net
|
|
108.0
|
|
|
43.0
|
|
|
151.2
|
|
|
0.5
|
|
|
0.2
|
|
|
Interest expense
|
|
(81.3
|
)
|
|
(70.5
|
)
|
|
15.3
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
Earnings before income taxes
|
|
4,198.6
|
|
|
3,903.0
|
|
|
7.6
|
|
|
19.7
|
|
|
20.4
|
|
|
Income tax expense
|
|
1,379.7
|
|
|
1,143.7
|
|
|
20.6
|
|
|
6.5
|
|
|
6.0
|
|
|
Net earnings including noncontrolling interests
|
|
2,818.9
|
|
|
2,759.3
|
|
|
2.2
|
|
|
13.2
|
|
|
14.4
|
|
|
Net earnings attributable to noncontrolling interests
|
|
1.2
|
|
|
1.9
|
|
|
(36.8
|
)
|
|
—
|
|
|
—
|
|
|
Net earnings attributable to Starbucks
|
|
$
|
2,817.7
|
|
|
$
|
2,757.4
|
|
|
2.2
|
%
|
|
13.2
|
%
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share - diluted
|
|
$
|
1.90
|
|
|
$
|
1.82
|
|
|
4.4
|
%
|
|
|
|
|
|
Weighted avg. shares outstanding - diluted
|
|
1,486.7
|
|
|
1,513.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
$
|
0.85
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
36.0
|
%
|
|
35.6
|
%
|
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
|
|
|
32.9
|
%
|
|
29.3
|
%
|
|
|
|
Segment Results (in millions)
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
|
Quarter Ended
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
As a % of Americas
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
3,550.1
|
|
|
$
|
3,035.0
|
|
|
17.0
|
%
|
|
89.5
|
%
|
|
89.7
|
%
|
|
Licensed stores
|
|
410.5
|
|
|
341.4
|
|
|
20.2
|
|
|
10.3
|
|
|
10.1
|
|
|
Foodservice and other
|
|
7.5
|
|
|
7.4
|
|
|
1.4
|
|
|
0.2
|
|
|
0.2
|
|
|
Total net revenues
|
|
3,968.1
|
|
|
3,383.8
|
|
|
17.3
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
1,406.0
|
|
|
1,220.6
|
|
|
15.2
|
|
|
35.4
|
|
|
36.1
|
|
|
Store operating expenses
|
|
1,259.7
|
|
|
1,111.8
|
|
|
13.3
|
|
|
31.7
|
|
|
32.9
|
|
|
Other operating expenses
|
|
10.2
|
|
|
29.4
|
|
|
(65.3
|
)
|
|
0.3
|
|
|
0.9
|
|
|
Depreciation and amortization expenses
|
|
148.5
|
|
|
135.8
|
|
|
9.4
|
|
|
3.7
|
|
|
4.0
|
|
|
General and administrative expenses
|
|
46.8
|
|
|
45.6
|
|
|
2.6
|
|
|
1.2
|
|
|
1.3
|
|
|
Total operating expenses
|
|
2,871.2
|
|
|
2,543.2
|
|
|
12.9
|
|
|
72.4
|
|
|
75.2
|
|
|
Operating income
|
|
$
|
1,096.9
|
|
|
$
|
840.6
|
|
|
30.5
|
%
|
|
27.6
|
%
|
|
24.8
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
35.5
|
%
|
|
36.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
|
|
Year Ended
|
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
As a % of Americas
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
13,247.4
|
|
|
$
|
11,925.6
|
|
|
11.1
|
%
|
|
89.5
|
%
|
|
89.7
|
%
|
|
Licensed stores
|
|
1,518.5
|
|
|
1,334.4
|
|
|
13.8
|
|
|
10.3
|
|
|
10.0
|
|
|
Foodservice and other
|
|
29.5
|
|
|
33.4
|
|
|
(11.7
|
)
|
|
0.2
|
|
|
0.3
|
|
|
Total net revenues
|
|
14,795.4
|
|
|
13,293.4
|
|
|
11.3
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
5,271.9
|
|
|
4,845.0
|
|
|
8.8
|
|
|
35.6
|
|
|
36.4
|
|
|
Store operating expenses
|
|
4,909.3
|
|
|
4,387.9
|
|
|
11.9
|
|
|
33.2
|
|
|
33.0
|
|
|
Other operating expenses
|
|
96.0
|
|
|
122.8
|
|
|
(21.8
|
)
|
|
0.6
|
|
|
0.9
|
|
|
Depreciation and amortization expenses
|
|
590.1
|
|
|
522.3
|
|
|
13.0
|
|
|
4.0
|
|
|
3.9
|
|
|
General and administrative expenses
|
|
186.1
|
|
|
192.1
|
|
|
(3.1
|
)
|
|
1.3
|
|
|
1.4
|
|
|
Total operating expenses
|
|
11,053.4
|
|
|
10,070.1
|
|
|
9.8
|
|
|
74.7
|
|
|
75.8
|
|
|
Operating income
|
|
$
|
3,742.0
|
|
|
$
|
3,223.3
|
|
|
16.1
|
%
|
|
25.3
|
%
|
|
24.2
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
37.1
|
%
|
|
36.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China/Asia Pacific (CAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
|
Quarter Ended
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
As a % of CAP
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
756.4
|
|
|
$
|
584.8
|
|
|
29.3
|
%
|
|
90.1
|
%
|
|
89.7
|
%
|
|
Licensed stores
|
|
81.6
|
|
|
66.7
|
|
|
22.3
|
|
|
9.7
|
|
|
10.2
|
|
|
Foodservice and other
|
|
1.2
|
|
|
0.7
|
|
|
71.4
|
|
|
0.1
|
|
|
0.1
|
|
|
Total net revenues
|
|
839.2
|
|
|
652.2
|
|
|
28.7
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
363.2
|
|
|
286.7
|
|
|
26.7
|
|
|
43.3
|
|
|
44.0
|
|
|
Store operating expenses
|
|
221.4
|
|
|
173.8
|
|
|
27.4
|
|
|
26.4
|
|
|
26.6
|
|
|
Other operating expenses
|
|
22.1
|
|
|
18.8
|
|
|
17.6
|
|
|
2.6
|
|
|
2.9
|
|
|
Depreciation and amortization expenses
|
|
48.9
|
|
|
44.4
|
|
|
10.1
|
|
|
5.8
|
|
|
6.8
|
|
|
General and administrative expenses
|
|
37.2
|
|
|
32.4
|
|
|
14.8
|
|
|
4.4
|
|
|
5.0
|
|
|
Total operating expenses
|
|
692.8
|
|
|
556.1
|
|
|
24.6
|
|
|
82.6
|
|
|
85.3
|
|
|
Income from equity investees
|
|
46.0
|
|
|
33.7
|
|
|
36.5
|
|
|
5.5
|
|
|
5.2
|
|
|
Operating income
|
|
$
|
192.4
|
|
|
$
|
129.8
|
|
|
48.2
|
%
|
|
22.9
|
%
|
|
19.9
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
29.3
|
%
|
|
29.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
|
|
Year Ended
|
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
As a % of CAP
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
2,640.4
|
|
|
$
|
2,127.3
|
|
|
24.1
|
%
|
|
89.8
|
%
|
|
88.8
|
%
|
|
Licensed stores
|
|
292.3
|
|
|
264.4
|
|
|
10.6
|
|
|
9.9
|
|
|
11.0
|
|
|
Foodservice and other
|
|
6.1
|
|
|
4.2
|
|
|
45.2
|
|
|
0.2
|
|
|
0.2
|
|
|
Total net revenues
|
|
2,938.8
|
|
|
2,395.9
|
|
|
22.7
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
1,296.7
|
|
|
1,071.5
|
|
|
21.0
|
|
|
44.1
|
|
|
44.7
|
|
|
Store operating expenses
|
|
779.4
|
|
|
609.8
|
|
|
27.8
|
|
|
26.5
|
|
|
25.5
|
|
|
Other operating expenses
|
|
70.3
|
|
|
62.2
|
|
|
13.0
|
|
|
2.4
|
|
|
2.6
|
|
|
Depreciation and amortization expenses
|
|
180.6
|
|
|
150.7
|
|
|
19.8
|
|
|
6.1
|
|
|
6.3
|
|
|
General and administrative expenses
|
|
130.3
|
|
|
120.8
|
|
|
7.9
|
|
|
4.4
|
|
|
5.0
|
|
|
Total operating expenses
|
|
2,457.3
|
|
|
2,015.0
|
|
|
22.0
|
|
|
83.6
|
|
|
84.1
|
|
|
Income from equity investees
|
|
150.1
|
|
|
119.6
|
|
|
25.5
|
|
|
5.1
|
|
|
5.0
|
|
|
Operating income
|
|
$
|
631.6
|
|
|
$
|
500.5
|
|
|
26.2
|
%
|
|
21.5
|
%
|
|
20.9
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
29.5
|
%
|
|
28.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
|
Quarter Ended
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
As a % of EMEA
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
156.0
|
|
|
$
|
223.2
|
|
|
(30.1
|
)%
|
|
57.7
|
%
|
|
72.4
|
%
|
|
Licensed stores
|
|
100.2
|
|
|
71.8
|
|
|
39.6
|
|
|
37.1
|
|
|
23.3
|
|
|
Foodservice
|
|
14.0
|
|
|
13.3
|
|
|
5.3
|
|
|
5.2
|
|
|
4.3
|
|
|
Total net revenues
|
|
270.2
|
|
|
308.3
|
|
|
(12.4
|
)
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
137.7
|
|
|
148.1
|
|
|
(7.0
|
)
|
|
51.0
|
|
|
48.0
|
|
|
Store operating expenses
|
|
51.2
|
|
|
68.3
|
|
|
(25.0
|
)
|
|
18.9
|
|
|
22.2
|
|
|
Other operating expenses
|
|
15.0
|
|
|
11.8
|
|
|
27.1
|
|
|
5.6
|
|
|
3.8
|
|
|
Depreciation and amortization expenses
|
|
8.4
|
|
|
13.1
|
|
|
(35.9
|
)
|
|
3.1
|
|
|
4.2
|
|
|
General and administrative expenses
|
|
12.1
|
|
|
15.0
|
|
|
(19.3
|
)
|
|
4.5
|
|
|
4.9
|
|
|
Total operating expenses
|
|
224.4
|
|
|
256.3
|
|
|
(12.4
|
)
|
|
83.0
|
|
|
83.1
|
|
|
Income from equity investees
|
|
—
|
|
|
1.1
|
|
|
(100.0
|
)
|
|
—
|
|
|
0.4
|
|
|
Operating income
|
|
$
|
45.8
|
|
|
$
|
53.1
|
|
|
(13.7
|
)%
|
|
17.0
|
%
|
|
17.2
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
32.8
|
%
|
|
30.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Oct 2,
2016
|
|
|
|
|
|
Year Ended
|
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
As a % of EMEA
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
732.0
|
|
|
$
|
911.2
|
|
|
(19.7
|
)%
|
|
65.1
|
%
|
|
74.9
|
%
|
|
Licensed stores
|
|
339.5
|
|
|
257.2
|
|
|
32.0
|
|
|
30.2
|
|
|
21.1
|
|
|
Foodservice
|
|
53.4
|
|
|
48.3
|
|
|
10.6
|
|
|
4.7
|
|
|
4.0
|
|
|
Total net revenues
|
|
1,124.9
|
|
|
1,216.7
|
|
|
(7.5
|
)
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
565.0
|
|
|
582.5
|
|
|
(3.0
|
)
|
|
50.2
|
|
|
47.9
|
|
|
Store operating expenses
|
|
260.6
|
|
|
308.7
|
|
|
(15.6
|
)
|
|
23.2
|
|
|
25.4
|
|
|
Other operating expenses
|
|
57.0
|
|
|
51.8
|
|
|
10.0
|
|
|
5.1
|
|
|
4.3
|
|
|
Depreciation and amortization expenses
|
|
40.8
|
|
|
52.0
|
|
|
(21.5
|
)
|
|
3.6
|
|
|
4.3
|
|
|
General and administrative expenses
|
|
51.4
|
|
|
56.6
|
|
|
(9.2
|
)
|
|
4.6
|
|
|
4.7
|
|
|
Total operating expenses
|
|
974.8
|
|
|
1,051.6
|
|
|
(7.3
|
)
|
|
86.7
|
|
|
86.4
|
|
|
Income from equity investees
|
|
1.5
|
|
|
3.1
|
|
|
(51.6
|
)
|
|
0.1
|
|
|
0.3
|
|
|
Operating income
|
|
$
|
151.6
|
|
|
$
|
168.2
|
|
|
(9.9
|
)%
|
|
13.5
|
%
|
|
13.8
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a percentage of company-operated store
revenues
|
|
|
|
|
|
|
|
35.6
|
%
|
|
33.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Channel Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
|
Quarter Ended
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
|
As a % of
Channel Development
total net
revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
CPG
|
|
$
|
401.7
|
|
|
$
|
353.2
|
|
|
13.7
|
%
|
|
77.5
|
%
|
|
77.3
|
%
|
|
Foodservice
|
|
116.8
|
|
|
103.5
|
|
|
12.9
|
|
|
22.5
|
|
|
22.7
|
|
|
Total net revenues
|
|
518.5
|
|
|
456.7
|
|
|
13.5
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales
|
|
271.9
|
|
|
252.6
|
|
|
7.6
|
|
|
52.4
|
|
|
55.3
|
|
|
Other operating expenses
|
|
56.7
|
|
|
49.6
|
|
|
14.3
|
|
|
10.9
|
|
|
10.9
|
|
|
Depreciation and amortization expenses
|
|
0.7
|
|
|
0.7
|
|
|
—
|
|
|
0.1
|
|
|
0.2
|
|
|
General and administrative expenses
|
|
4.9
|
|
|
3.6
|
|
|
36.1
|
|
|
0.9
|
|
|
0.8
|
|
|
Total operating expenses
|
|
334.2
|
|
|
306.5
|
|
|
9.0
|
|
|
64.5
|
|
|
67.1
|
|
|
Income from equity investees
|
|
60.0
|
|
|
47.1
|
|
|
27.4
|
|
|
11.6
|
|
|
10.3
|
|
|
Operating income
|
|
$
|
244.3
|
|
|
$
|
197.3
|
|
|
23.8
|
%
|
|
47.1
|
%
|
|
43.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
|
|
|
|
|
|
Year Ended
|
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
As a % of
Channel Development
total net
revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
CPG
|
|
$
|
1,488.2
|
|
|
$
|
1,329.0
|
|
|
12.0
|
%
|
|
77.0
|
%
|
|
76.8
|
%
|
|
Foodservice
|
|
444.3
|
|
|
401.9
|
|
|
10.5
|
|
|
23.0
|
|
|
23.2
|
|
|
Total net revenues
|
|
1,932.5
|
|
|
1,730.9
|
|
|
11.6
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales
|
|
1,042.6
|
|
|
974.8
|
|
|
7.0
|
|
|
54.0
|
|
|
56.3
|
|
|
Other operating expenses
|
|
228.5
|
|
|
210.5
|
|
|
8.6
|
|
|
11.8
|
|
|
12.2
|
|
|
Depreciation and amortization expenses
|
|
2.8
|
|
|
2.7
|
|
|
3.7
|
|
|
0.1
|
|
|
0.2
|
|
|
General and administrative expenses
|
|
17.9
|
|
|
16.2
|
|
|
10.5
|
|
|
0.9
|
|
|
0.9
|
|
|
Total operating expenses
|
|
1,291.8
|
|
|
1,204.2
|
|
|
7.3
|
|
|
66.8
|
|
|
69.6
|
|
|
Income from equity investees
|
|
166.6
|
|
|
127.2
|
|
|
31.0
|
|
|
8.6
|
|
|
7.3
|
|
|
Operating income
|
|
$
|
807.3
|
|
|
$
|
653.9
|
|
|
23.5
|
%
|
|
41.8
|
%
|
|
37.8
|
%
|
|
|
|
|
|
|
|
|
|
All Other Segments
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
|
|
|
|
|
Quarter Ended
|
|
(14 Weeks
Ended)
|
|
(13 Weeks
Ended)
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
45.3
|
|
|
$
|
43.6
|
|
|
3.9
|
%
|
|
Licensed stores
|
|
0.9
|
|
|
1.5
|
|
|
(40.0
|
)
|
|
CPG, foodservice and other
|
|
69.0
|
|
|
68.7
|
|
|
0.4
|
|
|
Total net revenues
|
|
115.2
|
|
|
113.8
|
|
|
1.2
|
|
|
Cost of sales including occupancy costs
|
|
69.9
|
|
|
74.0
|
|
|
(5.5
|
)
|
|
Store operating expenses
|
|
30.0
|
|
|
24.7
|
|
|
21.5
|
|
|
Other operating expenses
|
|
16.1
|
|
|
19.3
|
|
|
(16.6
|
)
|
|
Depreciation and amortization expenses
|
|
3.1
|
|
|
4.2
|
|
|
(26.2
|
)
|
|
General and administrative expenses
|
|
6.2
|
|
|
9.3
|
|
|
(33.3
|
)
|
|
Total operating expenses
|
|
125.3
|
|
|
131.5
|
|
|
(4.7
|
)
|
|
Operating loss
|
|
$
|
(10.1
|
)
|
|
$
|
(17.7
|
)
|
|
(42.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
%
Change
|
|
|
|
|
|
|
Year Ended
|
|
(53 Weeks
Ended)
|
|
(52 Weeks
Ended)
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
224.3
|
|
|
$
|
233.2
|
|
|
(3.8
|
)%
|
|
Licensed stores
|
|
3.9
|
|
|
5.9
|
|
|
(33.9
|
)
|
|
CPG, foodservice and other
|
|
296.1
|
|
|
286.7
|
|
|
3.3
|
|
|
Total net revenues
|
|
524.3
|
|
|
525.8
|
|
|
(0.3
|
)
|
|
Cost of sales including occupancy costs
|
|
316.5
|
|
|
316.5
|
|
|
—
|
|
|
Store operating expenses
|
|
115.0
|
|
|
104.7
|
|
|
9.8
|
|
|
Other operating expenses
|
|
91.4
|
|
|
76.5
|
|
|
19.5
|
|
|
Depreciation and amortization expenses
|
|
13.3
|
|
|
16.3
|
|
|
(18.4
|
)
|
|
General and administrative expenses
|
|
26.5
|
|
|
36.6
|
|
|
(27.6
|
)
|
|
Total operating expenses
|
|
562.7
|
|
|
550.6
|
|
|
2.2
|
|
|
Operating loss
|
|
$
|
(38.4
|
)
|
|
$
|
(24.8
|
)
|
|
54.8
|
%
|
|
|
|
STARBUCKS CORPORATION
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in millions, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,128.8
|
|
|
$
|
1,530.1
|
|
|
Short-term investments
|
|
134.4
|
|
|
81.3
|
|
|
Accounts receivable, net
|
|
768.8
|
|
|
719.0
|
|
|
Inventories
|
|
1,378.5
|
|
|
1,306.4
|
|
|
Prepaid expenses and other current assets
|
|
350.0
|
|
|
334.2
|
|
|
Total current assets
|
|
4,760.5
|
|
|
3,971.0
|
|
|
Long-term investments
|
|
1,141.7
|
|
|
312.5
|
|
|
Equity and cost investments
|
|
354.5
|
|
|
352.0
|
|
|
Property, plant and equipment, net
|
|
4,533.8
|
|
|
4,088.3
|
|
|
Deferred income taxes, net
|
|
885.4
|
|
|
1,180.8
|
|
|
Other long-term assets
|
|
417.7
|
|
|
415.9
|
|
|
Other intangible assets
|
|
516.3
|
|
|
520.4
|
|
|
Goodwill
|
|
1,719.6
|
|
|
1,575.4
|
|
|
TOTAL ASSETS
|
|
$
|
14,329.5
|
|
|
$
|
12,416.3
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
730.6
|
|
|
$
|
684.2
|
|
|
Accrued liabilities
|
|
1,999.1
|
|
|
1,755.3
|
|
|
Insurance reserves
|
|
246.0
|
|
|
224.8
|
|
|
Stored value card liability
|
|
1,171.2
|
|
|
983.8
|
|
|
Current portion of long-term debt
|
|
400.0
|
|
|
—
|
|
|
Total current liabilities
|
|
4,546.9
|
|
|
3,648.1
|
|
|
Long-term debt
|
|
3,202.2
|
|
|
2,347.5
|
|
|
Other long-term liabilities
|
|
689.7
|
|
|
600.9
|
|
|
Total liabilities
|
|
8,438.8
|
|
|
6,596.5
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued
and outstanding, 1,460.5 and 1,485.1 shares, respectively
|
|
1.5
|
|
|
1.5
|
|
|
Additional paid-in capital
|
|
41.1
|
|
|
41.1
|
|
|
Retained earnings
|
|
5,949.8
|
|
|
5,974.8
|
|
|
Accumulated other comprehensive loss
|
|
(108.4
|
)
|
|
(199.4
|
)
|
|
Total shareholders’ equity
|
|
5,884.0
|
|
|
5,818.0
|
|
|
Noncontrolling interests
|
|
6.7
|
|
|
1.8
|
|
|
Total equity
|
|
5,890.7
|
|
|
5,819.8
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
14,329.5
|
|
|
$
|
12,416.3
|
|
|
|
|
STARBUCKS CORPORATION
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited and in millions)
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
Sep 28,
2014
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net earnings including noncontrolling interests
|
|
$
|
2,818.9
|
|
|
$
|
2,759.3
|
|
|
$
|
2,067.7
|
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
1,030.1
|
|
|
933.8
|
|
|
748.4
|
|
|
Deferred income taxes, net
|
|
265.7
|
|
|
21.2
|
|
|
10.2
|
|
|
Income earned from equity method investees
|
|
(250.2
|
)
|
|
(190.2
|
)
|
|
(182.7
|
)
|
|
Distributions received from equity method investees
|
|
223.3
|
|
|
148.2
|
|
|
139.2
|
|
|
Gain resulting from acquisition/sale of equity in joint ventures and
certain retail operations
|
|
(6.1
|
)
|
|
(394.3
|
)
|
|
(70.2
|
)
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
61.1
|
|
|
—
|
|
|
Stock-based compensation
|
|
218.1
|
|
|
209.8
|
|
|
183.2
|
|
|
Excess tax benefit on share-based awards
|
|
(122.8
|
)
|
|
(132.4
|
)
|
|
(114.4
|
)
|
|
Other
|
|
45.1
|
|
|
53.8
|
|
|
36.2
|
|
|
Cash provided by changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(55.6
|
)
|
|
(82.8
|
)
|
|
(79.7
|
)
|
|
Inventories
|
|
(67.5
|
)
|
|
(207.9
|
)
|
|
14.3
|
|
|
Accounts payable
|
|
46.9
|
|
|
137.7
|
|
|
60.4
|
|
|
Accrued litigation charge
|
|
—
|
|
|
—
|
|
|
(2,763.9
|
)
|
|
Stored value card liability
|
|
180.4
|
|
|
170.3
|
|
|
140.8
|
|
|
Other operating assets and liabilities
|
|
248.8
|
|
|
261.5
|
|
|
418.3
|
|
|
Net cash provided by operating activities
|
|
4,575.1
|
|
|
3,749.1
|
|
|
607.8
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of investments
|
|
(1,585.7
|
)
|
|
(567.4
|
)
|
|
(1,652.5
|
)
|
|
Sales of investments
|
|
680.7
|
|
|
600.6
|
|
|
1,454.8
|
|
|
Maturities and calls of investments
|
|
27.9
|
|
|
18.8
|
|
|
456.1
|
|
|
Acquisitions, net of cash acquired
|
|
—
|
|
|
(284.3
|
)
|
|
—
|
|
|
Additions to property, plant and equipment
|
|
(1,440.3
|
)
|
|
(1,303.7
|
)
|
|
(1,160.9
|
)
|
|
Net proceeds from sale of equity in joint ventures and certain
retail operations
|
|
69.6
|
|
|
8.9
|
|
|
103.9
|
|
|
Other
|
|
24.9
|
|
|
6.8
|
|
|
(19.1
|
)
|
|
Net cash used by investing activities
|
|
(2,222.9
|
)
|
|
(1,520.3
|
)
|
|
(817.7
|
)
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
1,254.5
|
|
|
848.5
|
|
|
748.5
|
|
|
Repayments of long-term debt
|
|
—
|
|
|
(610.1
|
)
|
|
—
|
|
|
Cash used for purchase of non-controlling interest
|
|
—
|
|
|
(360.8
|
)
|
|
—
|
|
|
Proceeds from issuance of common stock
|
|
160.7
|
|
|
191.8
|
|
|
139.7
|
|
|
Excess tax benefit on share-based awards
|
|
122.8
|
|
|
132.4
|
|
|
114.4
|
|
|
Cash dividends paid
|
|
(1,178.0
|
)
|
|
(928.6
|
)
|
|
(783.1
|
)
|
|
Repurchase of common stock
|
|
(1,995.6
|
)
|
|
(1,436.1
|
)
|
|
(758.6
|
)
|
|
Minimum tax withholdings on share-based awards
|
|
(106.0
|
)
|
|
(75.5
|
)
|
|
(77.3
|
)
|
|
Other
|
|
(8.4
|
)
|
|
(18.1
|
)
|
|
(6.9
|
)
|
|
Net cash used by financing activities
|
|
(1,750.0
|
)
|
|
(2,256.5
|
)
|
|
(623.3
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(3.5
|
)
|
|
(150.6
|
)
|
|
(34.1
|
)
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
598.7
|
|
|
(178.3
|
)
|
|
(867.3
|
)
|
|
CASH AND CASH EQUIVALENTS:
|
|
|
|
|
|
|
|
Beginning of period
|
|
1,530.1
|
|
|
1,708.4
|
|
|
2,575.7
|
|
|
End of period
|
|
$
|
2,128.8
|
|
|
$
|
1,530.1
|
|
|
$
|
1,708.4
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
|
|
Interest, net of capitalized interest
|
|
$
|
74.7
|
|
|
$
|
69.5
|
|
|
$
|
56.2
|
|
|
Income taxes, net of refunds
|
|
$
|
878.7
|
|
|
$
|
1,072.2
|
|
|
$
|
766.3
|
|
Supplemental Information
The following supplemental information is provided for historical and
comparative purposes.
|
U.S. Supplemental Data
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
($ in millions)
|
|
Oct 2, 2016
|
|
Sep 27, 2015
|
|
Change
|
|
Revenues(1)
|
|
$3,615.5
|
|
$3,073.0
|
|
18%
|
|
Comparable Store Sales Growth(2)
|
|
4%
|
|
9%
|
|
|
|
Change in Transactions
|
|
(1)%
|
|
4%
|
|
|
|
Change in Ticket
|
|
6%
|
|
5%
|
|
|
|
(1)
|
|
The fiscal year ended on October 2, 2016 included 53 weeks, with the
53rd week falling in our fourth fiscal quarter.
|
|
(2)
|
|
Includes only Starbucks company-operated stores open 13 months or
longer. For fiscal 2016, comparable store sales percentages were
calculated excluding the 53rd week.
|
|
|
|
|
|
|
|
|
Store Data
|
|
|
|
|
|
|
|
Net stores opened/(closed) and transferred during the period
|
|
|
|
|
|
|
Quarter Ended
|
|
Year Ended
|
|
Stores open as of
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
|
(14 Weeks Ended)
|
|
(13 Weeks Ended)
|
|
(53 Weeks Ended)
|
|
(52 Weeks Ended)
|
|
|
|
Americas(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
144
|
|
|
89
|
|
|
348
|
|
|
276
|
|
|
9,019
|
|
|
8,671
|
|
Licensed stores
|
163
|
|
|
144
|
|
|
456
|
|
|
336
|
|
|
6,588
|
|
|
6,132
|
|
Total Americas
|
307
|
|
|
233
|
|
|
804
|
|
|
612
|
|
|
15,607
|
|
|
14,803
|
|
China/Asia Pacific(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
136
|
|
|
101
|
|
|
359
|
|
|
1,320
|
|
|
2,811
|
|
|
2,452
|
|
Licensed stores
|
180
|
|
|
122
|
|
|
622
|
|
|
(482
|
)
|
|
3,632
|
|
|
3,010
|
|
Total China/Asia Pacific
|
316
|
|
|
223
|
|
|
981
|
|
|
838
|
|
|
6,443
|
|
|
5,462
|
|
EMEA(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
(18
|
)
|
|
(47
|
)
|
|
(214
|
)
|
|
(80
|
)
|
|
523
|
|
|
737
|
|
Licensed stores
|
95
|
|
|
118
|
|
|
494
|
|
|
302
|
|
|
2,119
|
|
|
1,625
|
|
Total EMEA
|
77
|
|
|
71
|
|
|
280
|
|
|
222
|
|
|
2,642
|
|
|
2,362
|
|
All Other Segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
(7
|
)
|
|
(3
|
)
|
|
(17
|
)
|
|
6
|
|
|
358
|
|
|
375
|
|
Licensed stores
|
(3
|
)
|
|
—
|
|
|
(6
|
)
|
|
(1
|
)
|
|
35
|
|
|
41
|
|
Total All Other Segments
|
(10
|
)
|
|
(3
|
)
|
|
(23
|
)
|
|
5
|
|
|
393
|
|
|
416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
690
|
|
|
524
|
|
|
2,042
|
|
|
1,677
|
|
|
25,085
|
|
|
23,043
|
|
(1)
|
|
Americas store data includes the closure of 132 Target Canada
licensed stores in the second quarter of fiscal 2015.
|
|
(2)
|
|
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.
|
|
(3)
|
|
EMEA store data includes the transfer of 144 Germany
company-operated retail stores to licensed stores as a result of the
sale to AmRest Holdings SE in the third quarter of fiscal 2016.
|
|
|
|
|
Non-GAAP Disclosure
In addition to the GAAP results provided in this release, the company
provides consolidated non-GAAP operating income and consolidated
non-GAAP operating margin for Q4 fiscal 2016 and fiscal 2015 as well as
full year fiscal 2016 and fiscal 2015; consolidated non-GAAP earnings
per share ("non-GAAP EPS") for Q4 fiscal 2016 on a 14- and 13-week basis
and full year fiscal 2016 on a 53- and 52-week basis; non-GAAP EPS for
Q4 fiscal 2015 and full year fiscal 2015; China/Asia Pacific (“CAP”)
segment non-GAAP operating income and non-GAAP operating margin for Q4
fiscal 2016 and fiscal 2015 as well as full year fiscal 2016 and 2015;
Europe, Middle East, and Africa (“EMEA”) segment non-GAAP operating
income and non-GAAP operating margin for full year fiscal 2016 and
fiscal 2015; and projected consolidated non-GAAP EPS for full year
fiscal 2017. 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 fiscal 2016 and 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 consolidated full year fiscal 2016 non-GAAP
operating income and non-GAAP operating margin financial measures also
exclude costs related to the sale of the German retail operations. The
consolidated Q4 fiscal 2016 non-GAAP EPS financial measure also excludes
costs incurred related to the sale of the German retail operations, and
the consolidated full year fiscal 2016 non-GAAP EPS financial measure
also excludes a gain on sale of the German retail operations, which is
net of related costs, and an incremental tax benefit related to prior
fiscal years for a U.S. manufacturing deduction. The Q4 and full year
fiscal 2016 non-GAAP EPS figures on a 52-week basis also exclude the
impact of the extra week in Q4 fiscal 2016. The fiscal 2016 and fiscal
2015 CAP segment non-GAAP financial measures exclude the amortization
expense from acquired intangible assets related to the acquisition of
Starbucks Japan. The Q4 and full year fiscal 2016 CAP segment non-GAAP
financial measures also exclude integration costs, such as incremental
information technology and compensation-related costs associated with
the acquisition. The full year fiscal 2016 EMEA segment non-GAAP
financial measures exclude costs related to the sale of the German
retail operations. The consolidated Q4 and full year fiscal 2015
non-GAAP EPS financial measures also exclude losses and costs related to
the redemption of the company's $550 million of 6.250% 2017 Senior Notes
and an incremental tax benefit related to a U.S. manufacturing
deduction. Losses and costs related to the redemption of the company's
$550 million of 6.250% 2017 Senior Notes are included as debt
extinguishment-related items. The consolidated full year fiscal 2015
non-GAAP EPS financial measure also excludes a gain resulting from a
fair value adjustment of Starbucks preexisting 39.5% ownership interest
in Starbucks Japan prior to the acquisition. Management excludes the
acquisition and sale 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 Starbucks Japan 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 the current fiscal year, the
majority of these costs will be recognized over a finite period of time.
More specifically, integration costs are expected to be concentrated in
the first several years post-acquisition. Additionally, the amounts of
the acquired intangible assets are specific to the transaction and the
related future amortization was fixed at the time of acquisition and
generally cannot subsequently be changed or influenced by management.
Management excludes the Starbucks Japan fair value gain, debt
extinguishment-related items, gain on sale of the German retail
operations and related costs, and the incremental tax benefits because
they believe these items do not reflect future gains, losses, costs or
tax benefits and do not contribute to a meaningful evaluation of the
company’s fiscal 2016 or fiscal 2015 operating performance or
comparisons of the company’s fiscal 2016 or fiscal 2015 operating
performance to the company’s past or future operating performance.
Management excludes the impact of the extra week in Q4 fiscal 2016 and
full year fiscal 2016 non-GAAP EPS because it is not a regular
occurrence in the company’s fiscal calendar and they believe it provides
a more relative non-GAAP EPS comparison of the Company’s 2016
performance when compared to Q4 and full year fiscal 2015 performance,
which did not have the extra week, as well comparison to full year
projected fiscal 2017, which will not have the extra week.
The projected consolidated non-GAAP EPS for full year fiscal 2017
financial measures exclude certain Starbucks Japan acquisition-related
items comprised of projected amortization expense from acquired
intangible assets and integration costs. Management is excluding these
items from our projected non-GAAP financial measures for the same
reasons described above.
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
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
Change
|
|
|
|
(14 Weeks
Ended)
|
|
(13 Weeks
Ended)
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
1,227.5
|
|
|
$
|
969.4
|
|
|
26.6%
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
16.7
|
|
|
11.9
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
1,244.2
|
|
|
$
|
981.3
|
|
|
26.8%
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported (GAAP)
|
|
21.5
|
%
|
|
19.7
|
%
|
|
180 bps
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
0.3
|
|
|
0.2
|
|
|
|
|
Non-GAAP operating margin
|
|
21.8
|
%
|
|
20.0
|
%
|
|
180 bps
|
|
|
|
|
|
|
|
|
|
Diluted net earnings per share, as reported (GAAP)
|
|
$
|
0.54
|
|
|
$
|
0.43
|
|
|
25.6%
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
0.01
|
|
|
0.01
|
|
|
|
|
Debt extinguishment-related items(2)
|
|
—
|
|
|
0.04
|
|
|
|
|
Costs incurred on sale of Germany retail operations(3)
|
|
0.02
|
|
|
—
|
|
|
|
|
Income tax effect on Non-GAAP adjustments(4)
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
|
|
Other tax matters(5)
|
|
—
|
|
|
(0.04
|
)
|
|
|
|
Non-GAAP net earnings per share
|
|
$
|
0.56
|
|
|
$
|
0.43
|
|
|
30.2%
|
|
Impact of the extra week- Q4 FY16
|
|
(0.09
|
)
|
|
—
|
|
|
|
|
Income tax effect on the impact of the extra week- Q4 FY16(4)
|
|
0.03
|
|
|
—
|
|
|
|
|
Non-GAAP net earnings per share (13-week basis)
|
|
$
|
0.50
|
|
|
$
|
0.43
|
|
|
16.3%
|
|
|
|
|
|
|
|
|
|
China/Asia Pacific (CAP)
|
|
|
|
|
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
192.4
|
|
|
$
|
129.8
|
|
|
48.2%
|
|
Starbucks Japan acquisition-related items(6)
|
|
14.3
|
|
|
11.0
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
206.7
|
|
|
$
|
140.8
|
|
|
46.8%
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported (GAAP)
|
|
22.9
|
%
|
|
19.9
|
%
|
|
300 bps
|
|
Starbucks Japan acquisition-related items(6)
|
|
1.7
|
|
|
1.7
|
|
|
|
|
Non-GAAP operating margin
|
|
24.6
|
%
|
|
21.6
|
%
|
|
300 bps
|
|
(1)
|
|
Includes ongoing amortization expense of acquired intangible assets
and transaction and integration costs, such as incremental
information technology ("IT") and compensation-related costs
associated with the acquisition.
|
|
(2)
|
|
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
FY15, as well as the related unamortized interest rate hedge loss
($2.0M), which was recorded in interest expense.
|
|
(3)
|
|
Includes additional costs incurred in Q4 FY16 associated with the
sale of Germany retail operations.
|
|
(4)
|
|
Income tax effect on non-GAAP adjustments was determined based on
the nature of the underlying items and their relevant jurisdictional
tax rates.
|
|
(5)
|
|
Other tax matters include the incremental benefit from additional
domestic manufacturing deductions claimed in our U.S. consolidated
tax returns for periods prior to Q4 FY15.
|
|
(6)
|
|
Includes ongoing amortization expense of acquired intangible assets
associated with the acquisition; Q4 FY16 also includes
post-acquisition integration costs, such as compensation-related
costs.
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
Oct 2,
2016
|
|
Sep 27,
2015
|
|
Change
|
|
|
|
(53 Weeks
Ended)
|
|
(52 Weeks
Ended)
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
4,171.9
|
|
|
$
|
3,601.0
|
|
|
15.9%
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
57.4
|
|
|
54.6
|
|
|
|
|
Costs incurred on sale of Germany retail operations(2)
|
|
2.8
|
|
|
—
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
4,232.1
|
|
|
$
|
3,655.6
|
|
|
15.8%
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported (GAAP)
|
|
19.6
|
%
|
|
18.8
|
%
|
|
80 bps
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
0.3
|
|
|
0.3
|
|
|
|
|
Costs incurred on sale of Germany retail operations(2)
|
|
—
|
|
|
—
|
|
|
|
|
Non-GAAP operating margin
|
|
19.9
|
%
|
|
19.1
|
%
|
|
80 bps
|
|
|
|
|
|
|
|
|
|
Diluted net earnings per share, as reported (GAAP)
|
|
$
|
1.90
|
|
|
$
|
1.82
|
|
|
4.4%
|
|
Starbucks Japan acquisition-related items - gain(3)
|
|
—
|
|
|
(0.26
|
)
|
|
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
0.04
|
|
|
0.04
|
|
|
|
|
Debt extinguishment-related items(4)
|
|
—
|
|
|
0.04
|
|
|
|
|
Gain on sale of Germany retail operations(2)
|
|
—
|
|
|
—
|
|
|
|
|
Income tax effect on Non-GAAP adjustments(5)
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
|
|
Other tax matters(6)
|
|
(0.01
|
)
|
|
(0.04
|
)
|
|
|
|
Non-GAAP net earnings per share
|
|
$
|
1.91
|
|
|
$
|
1.58
|
|
|
20.9%
|
|
Impact of the extra week- Q4 FY16
|
|
(0.09
|
)
|
|
—
|
|
|
|
|
Income tax effect on the impact of the extra week- Q4 FY16(5)
|
|
0.03
|
|
|
—
|
|
|
|
|
Non-GAAP net earnings per share (52-week basis)
|
|
$
|
1.85
|
|
|
$
|
1.58
|
|
|
17.1%
|
|
|
|
|
|
|
|
|
|
China/Asia Pacific (CAP)
|
|
|
|
|
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
631.6
|
|
|
$
|
500.5
|
|
|
26.2%
|
|
Starbucks Japan acquisition-related items(7)
|
|
53.3
|
|
|
41.0
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
684.9
|
|
|
$
|
541.5
|
|
|
26.5%
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported (GAAP)
|
|
21.5
|
%
|
|
20.9
|
%
|
|
60 bps
|
|
Starbucks Japan acquisition-related items(7)
|
|
1.8
|
|
|
1.7
|
|
|
|
|
Non-GAAP operating margin
|
|
23.3
|
%
|
|
22.6
|
%
|
|
70 bps
|
|
|
|
|
|
|
|
|
|
EMEA
|
|
|
|
|
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
151.6
|
|
|
$
|
168.2
|
|
|
(9.9)%
|
|
Costs incurred on sale of Germany retail operations(2)
|
|
2.8
|
|
|
—
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
154.4
|
|
|
$
|
168.2
|
|
|
(8.2)%
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported (GAAP)
|
|
13.5
|
%
|
|
13.8
|
%
|
|
(30) bps
|
|
Costs incurred on sale of Germany retail operations(2)
|
|
0.2
|
|
|
—
|
|
|
|
|
Non-GAAP operating margin
|
|
13.7
|
%
|
|
13.8
|
%
|
|
(10) bps
|
|
(1)
|
|
Includes ongoing amortization expense of acquired intangible assets
and transaction and integration costs, such as incremental
information technology ("IT") and compensation-related costs
associated with the acquisition.
|
|
(2)
|
|
Gain on sale of Germany retail operations is net of certain costs
incurred in both Q3 and Q4 FY16 associated with the transfer of
these stores to licensed stores. Costs that impacted our operating
results are adjusted for in Consolidated and EMEA non-GAAP operating
income and operating margin.
|
|
(3)
|
|
Gain represents the fair value adjustment of Starbucks preexisting
39.5% ownership interest in Starbucks Japan upon acquisition.
|
|
(4)
|
|
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
FY15, as well as the related unamortized interest rate hedge loss
($2.0M), which was recorded in interest expense.
|
|
(5)
|
|
Income tax effect on non-GAAP adjustments was determined based on
the nature of the underlying items and their relevant jurisdictional
tax rates.
|
|
(6)
|
|
Other tax matters include the incremental benefit from additional
domestic manufacturing deductions claimed in our U.S. consolidated
tax returns for periods prior to the years presented.
|
|
(7)
|
|
Includes ongoing amortization expense of acquired intangible assets
associated with the acquisition; FY16 also includes post-acquisition
integration costs, including incremental IT and compensation-related
costs.
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
Oct 1,
2017
|
|
Oct 2,
2016
|
|
|
|
Consolidated
|
|
(Projected
52 Weeks Ended)
|
|
(As Reported,
53 Weeks Ended)
|
|
Change
|
|
Diluted net earnings per share (GAAP)
|
|
$2.09 - $2.11
|
|
$
|
1.90
|
|
|
10% - 11%
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
0.05
|
|
|
0.04
|
|
|
|
|
Sale of Germany retail operations(2)
|
|
—
|
|
|
—
|
|
|
|
|
Income tax effect on Non-GAAP adjustments(3)
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
|
|
Other tax matters(4)
|
|
—
|
|
|
(0.01
|
)
|
|
|
|
Non-GAAP net earnings per share
|
|
$2.12 - $2.14
|
|
$
|
1.91
|
|
|
11% - 12%
|
|
Impact of the extra week- Q4 FY16
|
|
—
|
|
|
(0.09
|
)
|
|
|
|
Income tax effect on the impact of the extra week- Q4 FY16(3)
|
|
—
|
|
|
0.03
|
|
|
|
|
Non-GAAP net earnings per share (52-week basis)
|
|
$2.12 - $2.14
|
|
$
|
1.85
|
|
|
15% - 16%
|
|
(1)
|
|
Includes ongoing amortization expense of acquired intangible assets
and transaction and integration costs, such as incremental IT and
compensation-related costs associated with the acquisition.
|
|
(2)
|
|
The sale of Germany retail operations includes certain costs
associated with the transfer of these stores to licensed stores.
|
|
(3)
|
|
Income tax effect on non-GAAP adjustments was determined based on
the nature of the underlying items and their relevant jurisdictional
tax rates.
|
|
(4)
|
|
Other tax matters include incremental benefit from additional
domestic manufacturing deductions claimed in our U.S. consolidated
tax returns for periods prior to the years presented.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161103006530/en/
Source: Starbucks Corporation