Q2 Comp Store Sales Up 3% Globally, Up 3% in U.S. and Up 7% in China
U.S. Comp Store Sales Accelerate Sequentially Through Q2; Reach 4% in
March and Accelerate Further in April
Consolidated Net Revenues Grow 6% to Q2 Record $5.3 Billion; Operating
Margin Expands to Q2 Record 17.7%
GAAP and Non-GAAP Earnings Per Share Up 15% to Q2 Record $0.45
SEATTLE--(BUSINESS WIRE)--
Starbucks Corporation (NASDAQ: SBUX) today reported financial results
for its 13-week fiscal second quarter and 26-week fiscal year to date
ended April 2, 2017. Fiscal 2017 and fiscal 2016 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.
Q2 Fiscal 2017 Highlights:
-
Global comparable store sales increased 3%
-
Americas comp store sales increased 3%
-
U.S. comp store sales increased 3% comprised of a 4% increase
in average ticket and a 2% decrease in transactions. Adjusting
for the estimated impact of order consolidation related to the
new Starbucks RewardsTM loyalty program, average
ticket grew 3% with transactions flat to prior year.
-
CAP comp store sales increased 3%
-
China comp store sales increased 7% driven by a 6% increase in
transactions
-
Consolidated net revenues grew 6% to a Q2 record $5.3 billion
-
Consolidated operating income increased 8% to a Q2 record $935 million
-
Consolidated operating margin expanded 40 basis points to a Q2 record
17.7%
-
GAAP and non-GAAP earnings per share grew 15% to a Q2 record $0.45 per
share
-
Active U.S. membership in Starbucks Rewards grew 11% year-over-year to
13.3 million members
-
Starbucks Rewards represented 36% of U.S. company-operated sales in
the quarter, with Mobile Payment reaching 29% of transactions and
Mobile Order and Pay growing to 8% of transactions
-
Total stores reached 26,161 in 75 countries globally, with the opening
of 427 net new stores in the quarter
“With our U.S. business accelerating throughout the quarter and strong
performance in China, we are poised to deliver strong revenue growth in
the second half and into the future,” said Kevin Johnson, Starbucks
president and ceo. “Our success in opening over 2,000 stores around the
world annually, delivering record AUV and profit, despite a very
difficult period for many brick-and-mortar retailers is a testament to
the 330,000 partners who proudly wear the green apron.”
“Starbucks U.S. comp sales accelerated sequentially through the quarter
- culminating with a 4% U.S. comp in March - and we’re seeing further
acceleration into April," said Scott Maw, Starbucks cfo. “Investments we
are making to increase throughput and further premiumize the Starbucks
brand are paying off. And increased capacity combined with accelerating
momentum and the beverage, food and technology innovation we will be
introducing in the months ahead gives us great confidence in our ability
to deliver strong comp sales and revenue growth in the back half of
fiscal 2017.”
“Starbucks Roasteries under design or construction in the iconic, global
cities of Shanghai, New York, Tokyo, Milan and Chicago will join our
Seattle Roastery in delivering an immersive, ultra-premium,
coffee-forward experience like none other anywhere in the world -
further elevating the Starbucks brand, enhancing our customer experience
and extending our global leadership around all-things-coffee,” said
Howard Schultz, Starbucks executive chairman. “Together our Roasteries,
Reserve stores and Reserve bars will broaden - and deepen - the enduring
emotional connection that exists between our customers and the Starbucks
brand everywhere.”
|
Second Quarter Fiscal 2017 Summary
|
|
|
|
|
|
|
|
Quarter Ended Apr 2, 2017
|
|
Comparable Store Sales(1)
|
|
Sales Growth
|
|
Change in Transactions
|
|
Change in Ticket
|
|
Consolidated
|
|
3%
|
|
(1)%
|
|
4%
|
|
Americas
|
|
3%
|
|
(1)%
|
|
4%
|
|
CAP
|
|
3%
|
|
1%
|
|
1%
|
|
EMEA
|
|
(1)%
|
|
0%
|
|
(1)%
|
|
(1)
|
|
Includes only Starbucks company-operated stores open 13 months or
longer. Comparable store sales exclude the effect of fluctuations in
foreign currency exchange rates.
|
|
|
|
|
|
|
|
Operating Results
|
|
Quarter Ended
|
|
Change
|
|
($ in millions, except per share amounts)
|
|
Apr 2, 2017
|
|
Mar 27, 2016
|
|
|
Net New Stores
|
|
427
|
|
350
|
|
77
|
|
Revenues
|
|
$5,294.0
|
|
$4,993.2
|
|
6%
|
|
Operating Income
|
|
$935.4
|
|
$864.2
|
|
8%
|
|
Operating Margin
|
|
17.7%
|
|
17.3%
|
|
40 bps
|
|
EPS
|
|
$0.45
|
|
$0.39
|
|
15%
|
Consolidated net revenues were $5.3 billion in Q2 FY17, an increase of
6% over Q2 FY16. The increase was primarily driven by incremental
revenues from the opening of 2,240 net new stores over the past 12
months and 3% growth in global comparable store sales.
Consolidated operating income grew 8% to $935.4 million in Q2 FY17, up
from $864.2 million in Q2 FY16. Consolidated operating margin expanded
40 basis points to 17.7% primarily due to sales leverage and was
partially offset by higher investments in our store partners
(employees), primarily in the Americas segment.
|
Q2 Americas Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
($ in millions)
|
|
Apr 2, 2017
|
|
Mar 27, 2016
|
|
|
Net New Stores
|
|
200
|
|
132
|
|
68
|
|
Revenues
|
|
$3,720.4
|
|
$3,455.6
|
|
8%
|
|
Operating Income
|
|
$826.1
|
|
$812.0
|
|
2%
|
|
Operating Margin
|
|
22.2%
|
|
23.5%
|
|
(130) bps
|
Net revenues for the Americas segment were $3.7 billion in Q2 FY17, an
increase of 8% over Q2 FY16. The increase was driven by incremental
revenues from 952 net new store openings over the past 12 months and 3%
growth in comparable store sales.
Operating income of $826.1 million in Q2 FY17 grew 2% versus $812.0
million in Q2 FY16. Operating margin of 22.2% declined 130 basis points
primarily due to higher investments in our store partners (employees)
and the impact of product sales mix. These decreases were partially
offset by sales leverage.
|
Q2 China/Asia Pacific Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
($ in millions)
|
|
Apr 2, 2017
|
|
Mar 27, 2016
|
|
|
Net New Stores
|
|
187
|
|
175
|
|
12
|
|
Revenues
|
|
$768.9
|
|
$677.9
|
|
13%
|
|
Operating Income
|
|
$175.9
|
|
$129.3
|
|
36%
|
|
Operating Margin
|
|
22.9%
|
|
19.1%
|
|
380 bps
|
Net revenues for the China/Asia Pacific segment grew 13% over Q2 FY16 to
$768.9 million in Q2 FY17. The increase was primarily driven by
incremental revenues from 1,015 net new store openings over the past 12
months and 3% growth in comparable store sales.
Q2 FY17 operating income of $175.9 million grew 36% over Q2 FY16
operating income of $129.3 million. Operating margin expanded 380 basis
points to 22.9% primarily driven by the transition to China's value
added tax structure in Q3 FY16 and sales leverage.
|
Q2 EMEA Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
($ in millions)
|
|
Apr 2, 2017
|
|
Mar 27, 2016
|
|
|
Net New Stores
|
|
46
|
|
47
|
|
(1)
|
|
Revenues
|
|
$231.7
|
|
$268.3
|
|
(14)%
|
|
Operating Income
|
|
$27.7
|
|
$27.6
|
|
0%
|
|
Operating Margin
|
|
12.0%
|
|
10.3%
|
|
170 bps
|
Net revenues for the EMEA segment were $231.7 million in Q2 FY17, a 14%
decrease versus Q2 FY16. The decrease was primarily driven by the
absence of revenue related to the sale of our Germany retail operations
in Q3 FY16 as part of the ongoing shift to more licensed stores in the
region as well as unfavorable foreign currency translation. Partially
offsetting these decreases were incremental revenues from the opening of
304 net new licensed stores over the past 12 months.
Operating income of $27.7 million in Q2 FY17 was nearly flat to
operating income of $27.6 million in Q2 FY16. Operating margin expanded
170 basis points to 12.0% primarily due to sales leverage driven by the
shift in the portfolio towards more licensed stores, primarily related
to the sale of our Germany retail operations in Q3 FY16. Partially
offsetting the margin expansion was unfavorable foreign currency
exchange and sales deleverage in certain company-operated stores.
|
Q2 Channel Development Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
($ in millions)
|
|
Apr 2, 2017
|
|
Mar 27, 2016
|
|
|
Revenues
|
|
$461.3
|
|
$461.2
|
|
0%
|
|
Operating Income
|
|
$193.6
|
|
$182.0
|
|
6%
|
|
Operating Margin
|
|
42.0%
|
|
39.5%
|
|
250 bps
|
Net revenues for the Channel Development segment of $461.3 million in Q2
FY17 were flat to Q2 FY16. Increased sales of packaged coffee as well as
higher international and foodservice sales were offset by an unfavorable
revenue deduction adjustment pertaining to prior periods of $20.6
million, an immaterial amount of which pertained to Q2 FY16. When
excluding this adjustment, revenue growth was approximately 5%.
Operating income of $193.6 million in Q2 FY17 increased 6% compared to
Q2 FY16. Operating margin expanded 250 basis points to 42.0% primarily
driven by lower coffee costs and leverage on cost of sales as well as
higher income from the North American Coffee Partnership. The margin
expansion was partially offset by the unfavorable revenue deduction
adjustment noted above.
|
Q2 All Other Segments Results
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Change
|
|
($ in millions)
|
|
Apr 2, 2017
|
|
Mar 27, 2016
|
|
|
Net New Stores
|
|
(6)
|
|
(4)
|
|
(2)
|
|
Revenues
|
|
$111.7
|
|
$130.2
|
|
(14)%
|
|
Operating Loss
|
|
$(25.5)
|
|
$(19.2)
|
|
33%
|
|
|
|
Year to Date Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
Two Quarters Ended
|
|
Comparable Store Sales(1)
|
|
Sales Growth
|
|
Change in Transactions
|
|
Change in Ticket
|
|
Consolidated
|
|
3%
|
|
(1)%
|
|
4%
|
|
Americas
|
|
3%
|
|
(1)%
|
|
4%
|
|
CAP
|
|
4%
|
|
2%
|
|
2%
|
|
EMEA
|
|
(1)%
|
|
(1)%
|
|
0%
|
|
(1)
|
|
Includes only Starbucks company-operated stores open 13 months or
longer. Comparable store sales exclude the effect of fluctuations in
foreign currency exchange rates.
|
|
|
|
|
|
|
|
|
|
Operating Results
|
|
Two Quarters Ended
|
|
Change
|
|
($ in millions, except per share amounts)
|
|
Apr 2, 2017
|
|
Mar 27, 2016
|
|
|
Net New Stores
|
|
1,076
|
|
878
|
|
198
|
|
Revenues
|
|
$11,027.0
|
|
$10,366.8
|
|
6%
|
|
Operating Income
|
|
$2,068.3
|
|
$1,922.3
|
|
8%
|
|
Operating Margin
|
|
18.8%
|
|
18.5%
|
|
30 bps
|
|
EPS
|
|
$0.96
|
|
$0.84
|
|
14%
|
|
|
|
|
|
|
|
|
Targets
The company's earnings press release will no longer contain forward
looking targets. The company will continue its practice of providing
detail regarding its business outlook during its regularly scheduled
quarterly earnings conference calls.
Company Updates
-
Starbucks held its 2017 Annual Meeting of Shareholders on March 22.
The company reiterated its intent to open 12,000 new stores globally
and 3,400 net new stores in the U.S. by Fiscal 2021. In addition,
Starbucks shareholders elected Rosalind Brewer, former President and
Chief Executive Officer of Sam's Club; Jørgen Vig Knudstorp, Executive
Chairman of the LEGO Brand Group; and Satya Nadella, CEO of Microsoft
Corporation, to the Starbucks Board of Directors, along with returning
directors.
-
In February, the company announced its fifth Starbucks Reserve™
Roastery location on Piazza Cordusio in Milan, Italy. Set to open in
late 2018, the Milan Roastery will be the first Starbucks Reserve
Roastery to open in the Europe, Middle East and Africa region.
-
In April, Starbucks announced plans to open its sixth Roastery in an
iconic building on Chicago’s Magnificent Mile in 2019, and confirmed
one of the first Starbucks Reserve® stores will be on the
West Loop, opening in 2018. In addition to new store experiences,
Starbucks launched the new Mercato lunch menu earlier this month,
which includes a selection of grab-and-go salads, hearty sandwiches
and sides, in more than 100 Starbucks stores in downtown Chicago.
-
Starbucks announced the offering of a critical illness insurance plan
for the parents of its eligible full-time partners (employees) in
company-operated stores across Mainland China beginning June 1. This
industry-leading investment will benefit over 10,000 parents of its
Chinese partners.
-
In February, Starbucks launched a new social gifting feature in
partnership with China’s leading mobile social communications service,
Weixin. “用星说” (Say it with Starbucks) is a pioneering
online-to-offline social gifting innovation that enables users to
instantly gift a Starbucks beverage or digital gift card. Starbucks is
the first retail brand to bring a locally-relevant social gifting
experience in China.
-
The company announced that it had closed an underwritten public
offering of senior notes, comprising the first global yen-denominated
Corporate Sustainability Bond issued in the Japanese market. The
company will use the net proceeds from the offering of 85 billion
Japanese Yen in 0.372% Senior Notes due 2024 to enhance its
sustainability programs around coffee supply chain management through
Eligible Sustainability Projects.
-
The company repurchased 11.3 million shares of common stock in Q2
FY17; 99 million shares remain available for purchase under current
authorizations.
-
The Board of Directors declared a cash dividend of $0.25 per share,
payable on May 26, 2017 to shareholders of record as May 11, 2017.
Conference Call
Starbucks will hold a conference call today at 2:00 p.m. Pacific Time,
which will be hosted by Kevin Johnson, president and ceo; Belinda Wong,
ceo, Starbucks China; Scott Maw, cfo; and Howard Schultz, executive
chairman. 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, May
27, 2017.
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, momentum and potential of our business, operations and
brand, our customer base, our innovation, growth and growth
opportunities and related investments, our Starbucks Reserve® Roasteries
and Starbucks Reserve® stores, return to shareholders, our strategic,
operational and digital moves, revenues, operating margins, comparable
store sales and transactions and net new stores and their performance.
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 incidents involving food or beverage-borne
illnesses, tampering, contamination or mislabeling, potential negative
effects of material breaches of our information technology systems to
the extent we experience a material breach, 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
October 2, 2016. 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
|
|
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
%
Change
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
|
|
|
|
|
|
|
|
|
|
As a % of total
net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
4,195.4
|
|
|
$
|
3,944.2
|
|
|
6.4
|
%
|
|
79.2
|
%
|
|
79.0
|
%
|
|
Licensed stores
|
|
546.7
|
|
|
493.1
|
|
|
10.9
|
|
|
10.3
|
|
|
9.9
|
|
|
CPG, foodservice and other(1)
|
|
551.9
|
|
|
555.9
|
|
|
(0.7
|
)
|
|
10.4
|
|
|
11.1
|
|
|
Total net revenues
|
|
5,294.0
|
|
|
4,993.2
|
|
|
6.0
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
2,141.2
|
|
|
2,010.3
|
|
|
6.5
|
|
|
40.4
|
|
|
40.3
|
|
|
Store operating expenses
|
|
1,586.4
|
|
|
1,466.4
|
|
|
8.2
|
|
|
30.0
|
|
|
29.4
|
|
|
Other operating expenses
|
|
134.7
|
|
|
139.6
|
|
|
(3.5
|
)
|
|
2.5
|
|
|
2.8
|
|
|
Depreciation and amortization expenses
|
|
253.6
|
|
|
247.8
|
|
|
2.3
|
|
|
4.8
|
|
|
5.0
|
|
|
General and administrative expenses
|
|
326.8
|
|
|
330.5
|
|
|
(1.1
|
)
|
|
6.2
|
|
|
6.6
|
|
|
Total operating expenses
|
|
4,442.7
|
|
|
4,194.6
|
|
|
5.9
|
|
|
83.9
|
|
|
84.0
|
|
|
Income from equity investees
|
|
84.1
|
|
|
65.6
|
|
|
28.2
|
|
|
1.6
|
|
|
1.3
|
|
|
Operating income
|
|
935.4
|
|
|
864.2
|
|
|
8.2
|
|
|
17.7
|
|
|
17.3
|
|
|
Interest income and other, net(2)
|
|
67.9
|
|
|
14.5
|
|
|
368.3
|
|
|
1.3
|
|
|
0.3
|
|
|
Interest expense
|
|
(22.9
|
)
|
|
(18.3
|
)
|
|
25.1
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
Earnings before income taxes
|
|
980.4
|
|
|
860.4
|
|
|
13.9
|
|
|
18.5
|
|
|
17.2
|
|
|
Income tax expense
|
|
327.6
|
|
|
285.4
|
|
|
14.8
|
|
|
6.2
|
|
|
5.7
|
|
|
Net earnings including noncontrolling interests
|
|
652.8
|
|
|
575.0
|
|
|
13.5
|
|
|
12.3
|
|
|
11.5
|
|
|
Net loss attributable to noncontrolling interests
|
|
—
|
|
|
(0.1
|
)
|
|
(100.0
|
)
|
|
—
|
|
|
—
|
|
|
Net earnings attributable to Starbucks
|
|
$
|
652.8
|
|
|
$
|
575.1
|
|
|
13.5
|
|
|
12.3
|
%
|
|
11.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share - diluted
|
|
$
|
0.45
|
|
|
$
|
0.39
|
|
|
15.4
|
%
|
|
|
|
|
|
Weighted avg. shares outstanding - diluted
|
|
1,464.8
|
|
|
1,486.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
$
|
0.25
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
|
|
37.8
|
%
|
|
37.2
|
%
|
|
Other operating expenses as a % of non-company-operated store
revenues
|
|
|
|
|
|
|
|
12.3
|
%
|
|
13.3
|
%
|
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
|
|
|
33.4
|
%
|
|
33.2
|
%
|
|
(1)
|
|
CPG revenues in Q2 FY17 included an unfavorable revenue deduction
adjustment pertaining to prior periods of $20.6 million.
|
|
(2)
|
|
Included in interest income and other, net is the gain on the sale
of our investment in Square, Inc. warrants of $40.5 million in Q2
FY17.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Quarters Ended
|
|
Two Quarters Ended
|
|
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
%
Change
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
|
|
|
|
|
|
|
|
|
|
As a % of total
net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
8,664.7
|
|
|
$
|
8,154.8
|
|
|
6.3
|
%
|
|
78.6
|
%
|
|
78.7
|
%
|
|
Licensed stores
|
|
1,149.1
|
|
|
1,033.8
|
|
|
11.2
|
|
|
10.4
|
|
|
10.0
|
|
|
CPG, foodservice and other(1)
|
|
1,213.2
|
|
|
1,178.2
|
|
|
3.0
|
|
|
11.0
|
|
|
11.4
|
|
|
Total net revenues
|
|
11,027.0
|
|
|
10,366.8
|
|
|
6.4
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
4,436.2
|
|
|
4,196.5
|
|
|
5.7
|
|
|
40.2
|
|
|
40.5
|
|
|
Store operating expenses
|
|
3,224.6
|
|
|
2,972.6
|
|
|
8.5
|
|
|
29.2
|
|
|
28.7
|
|
|
Other operating expenses
|
|
280.1
|
|
|
285.8
|
|
|
(2.0
|
)
|
|
2.5
|
|
|
2.8
|
|
|
Depreciation and amortization expenses
|
|
503.3
|
|
|
483.3
|
|
|
4.1
|
|
|
4.6
|
|
|
4.7
|
|
|
General and administrative expenses
|
|
683.1
|
|
|
636.0
|
|
|
7.4
|
|
|
6.2
|
|
|
6.1
|
|
|
Total operating expenses
|
|
9,127.3
|
|
|
8,574.2
|
|
|
6.5
|
|
|
82.8
|
|
|
82.7
|
|
|
Income from equity investees
|
|
168.6
|
|
|
129.7
|
|
|
30.0
|
|
|
1.5
|
|
|
1.3
|
|
|
Operating income
|
|
2,068.3
|
|
|
1,922.3
|
|
|
7.6
|
|
|
18.8
|
|
|
18.5
|
|
|
Interest income and other, net(2)
|
|
92.0
|
|
|
22.5
|
|
|
308.9
|
|
|
0.8
|
|
|
0.2
|
|
|
Interest expense
|
|
(46.7
|
)
|
|
(34.8
|
)
|
|
34.2
|
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
Earnings before income taxes
|
|
2,113.6
|
|
|
1,910.0
|
|
|
10.7
|
|
|
19.2
|
|
|
18.4
|
|
|
Income tax expense
|
|
709.0
|
|
|
647.4
|
|
|
9.5
|
|
|
6.4
|
|
|
6.2
|
|
|
Net earnings including noncontrolling interests
|
|
1,404.6
|
|
|
1,262.6
|
|
|
11.2
|
|
|
12.7
|
|
|
12.2
|
|
|
Net loss attributable to noncontrolling interests
|
|
|
(0.3
|
)
|
|
|
—
|
|
|
nm
|
|
|
—
|
|
|
—
|
|
|
Net earnings attributable to Starbucks
|
|
$
|
1,404.9
|
|
|
$
|
1,262.6
|
|
|
11.3
|
%
|
|
12.7
|
%
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share - diluted
|
|
$
|
0.96
|
|
|
$
|
0.84
|
|
|
14.3
|
%
|
|
|
|
|
|
Weighted avg. shares outstanding - diluted
|
|
1,467.7
|
|
|
1,495.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
$
|
0.50
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
|
|
37.2
|
%
|
|
36.5
|
%
|
|
Other operating expenses as a % of non-company-operated store
revenues
|
|
|
|
|
|
|
|
11.9
|
%
|
|
12.9
|
%
|
|
Effective tax rate including noncontrolling interests
|
|
|
|
|
|
|
|
33.5
|
%
|
|
33.9
|
%
|
|
(1)
|
|
CPG revenues in Q2 FY17 included an unfavorable revenue deduction
adjustment pertaining to prior periods of $20.6 million.
|
|
(2)
|
|
Included in interest income and other, net is the gain on the sale
of our investment in Square, Inc. warrants of $40.5 million in Q2
FY17.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Results (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
%
Change
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
Quarter Ended
|
|
|
|
|
|
|
|
As a % of Americas
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
3,334.9
|
|
|
$
|
3,097.5
|
|
|
7.7
|
%
|
|
89.6
|
%
|
|
89.6
|
%
|
|
Licensed stores
|
|
376.7
|
|
|
351.8
|
|
|
7.1
|
|
|
10.1
|
|
|
10.2
|
|
|
Foodservice and other
|
|
8.8
|
|
|
6.3
|
|
|
39.7
|
|
|
0.2
|
|
|
0.2
|
|
|
Total net revenues
|
|
3,720.4
|
|
|
3,455.6
|
|
|
7.7
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
1,354.9
|
|
|
1,230.0
|
|
|
10.2
|
|
|
36.4
|
|
|
35.6
|
|
|
Store operating expenses
|
|
1,299.1
|
|
|
1,186.7
|
|
|
9.5
|
|
|
34.9
|
|
|
34.3
|
|
|
Other operating expenses
|
|
31.5
|
|
|
27.7
|
|
|
13.7
|
|
|
0.8
|
|
|
0.8
|
|
|
Depreciation and amortization expenses
|
|
155.4
|
|
|
151.7
|
|
|
2.4
|
|
|
4.2
|
|
|
4.4
|
|
|
General and administrative expenses
|
|
53.4
|
|
|
47.5
|
|
|
12.4
|
|
|
1.4
|
|
|
1.4
|
|
|
Total operating expenses
|
|
2,894.3
|
|
|
2,643.6
|
|
|
9.5
|
|
|
77.8
|
|
|
76.5
|
|
|
Operating income
|
|
$
|
826.1
|
|
|
$
|
812.0
|
|
|
1.7
|
%
|
|
22.2
|
%
|
|
23.5
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
|
|
39.0
|
%
|
|
38.3
|
%
|
|
Other operating expenses as a % of non-company-operated store
revenues
|
|
|
|
|
|
|
|
8.2
|
%
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
6,895.9
|
|
|
$
|
6,428.2
|
|
|
7.3
|
%
|
|
89.4
|
%
|
|
89.5
|
%
|
|
Licensed stores
|
|
798.0
|
|
|
739.4
|
|
|
7.9
|
|
|
10.3
|
|
|
10.3
|
|
|
Foodservice and other
|
|
17.9
|
|
|
14.2
|
|
|
26.1
|
|
|
0.2
|
|
|
0.2
|
|
|
Total net revenues
|
|
7,711.8
|
|
|
7,181.8
|
|
|
7.4
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
2,795.2
|
|
|
2,576.9
|
|
|
8.5
|
|
|
36.2
|
|
|
35.9
|
|
|
Store operating expenses
|
|
2,655.5
|
|
|
2,413.5
|
|
|
10.0
|
|
|
34.4
|
|
|
33.6
|
|
|
Other operating expenses
|
|
63.4
|
|
|
60.4
|
|
|
5.0
|
|
|
0.8
|
|
|
0.8
|
|
|
Depreciation and amortization expenses
|
|
307.8
|
|
|
292.5
|
|
|
5.2
|
|
|
4.0
|
|
|
4.1
|
|
|
General and administrative expenses
|
|
105.3
|
|
|
92.0
|
|
|
14.5
|
|
|
1.4
|
|
|
1.3
|
|
|
Total operating expenses
|
|
5,927.2
|
|
|
5,435.3
|
|
|
9.1
|
|
|
76.9
|
|
|
75.7
|
|
|
Operating income
|
|
$
|
1,784.6
|
|
|
$
|
1,746.5
|
|
|
2.2
|
%
|
|
23.1
|
%
|
|
24.3
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
|
|
38.5
|
%
|
|
37.5
|
%
|
|
Other operating expenses as a % of non-company-operated store
revenues
|
|
|
|
|
|
|
|
7.8
|
%
|
|
8.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China/Asia Pacific (CAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
%
Change
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
Quarter Ended
|
|
|
|
|
|
|
|
As a % of CAP
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
687.8
|
|
|
$
|
608.5
|
|
|
13.0
|
%
|
|
89.5
|
%
|
|
89.8
|
%
|
|
Licensed stores
|
|
78.4
|
|
|
67.0
|
|
|
17.0
|
|
|
10.2
|
|
|
9.9
|
|
|
Foodservice and other
|
|
2.7
|
|
|
2.4
|
|
|
12.5
|
|
|
0.4
|
|
|
0.4
|
|
|
Total net revenues
|
|
768.9
|
|
|
677.9
|
|
|
13.4
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
333.5
|
|
|
307.2
|
|
|
8.6
|
|
|
43.4
|
|
|
45.3
|
|
|
Store operating expenses
|
|
202.5
|
|
|
182.3
|
|
|
11.1
|
|
|
26.3
|
|
|
26.9
|
|
|
Other operating expenses
|
|
17.6
|
|
|
17.2
|
|
|
2.3
|
|
|
2.3
|
|
|
2.5
|
|
|
Depreciation and amortization expenses
|
|
49.3
|
|
|
44.0
|
|
|
12.0
|
|
|
6.4
|
|
|
6.5
|
|
|
General and administrative expenses
|
|
34.2
|
|
|
30.6
|
|
|
11.8
|
|
|
4.4
|
|
|
4.5
|
|
|
Total operating expenses
|
|
637.1
|
|
|
581.3
|
|
|
9.6
|
|
|
82.9
|
|
|
85.8
|
|
|
Income from equity investees
|
|
44.1
|
|
|
32.7
|
|
|
34.9
|
|
|
5.7
|
|
|
4.8
|
|
|
Operating income
|
|
$
|
175.9
|
|
|
$
|
129.3
|
|
|
36.0
|
%
|
|
22.9
|
%
|
|
19.1
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
|
|
29.4
|
%
|
|
30.0
|
%
|
|
Other operating expenses as a % of non-company-operated store
revenues
|
|
|
|
|
|
|
|
21.7
|
%
|
|
24.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
1,379.2
|
|
|
$
|
1,188.6
|
|
|
16.0
|
%
|
|
89.6
|
%
|
|
89.3
|
%
|
|
Licensed stores
|
|
156.4
|
|
|
139.1
|
|
|
12.4
|
|
|
10.2
|
|
|
10.4
|
|
|
Foodservice and other
|
|
4.0
|
|
|
3.7
|
|
|
8.1
|
|
|
0.3
|
|
|
0.3
|
|
|
Total net revenues
|
|
1,539.6
|
|
|
1,331.4
|
|
|
15.6
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
670.8
|
|
|
602.3
|
|
|
11.4
|
|
|
43.6
|
|
|
45.2
|
|
|
Store operating expenses
|
|
406.8
|
|
|
357.6
|
|
|
13.8
|
|
|
26.4
|
|
|
26.9
|
|
|
Other operating expenses
|
|
36.7
|
|
|
32.1
|
|
|
14.3
|
|
|
2.4
|
|
|
2.4
|
|
|
Depreciation and amortization expenses
|
|
98.0
|
|
|
86.1
|
|
|
13.8
|
|
|
6.4
|
|
|
6.5
|
|
|
General and administrative expenses
|
|
74.8
|
|
|
61.1
|
|
|
22.4
|
|
|
4.9
|
|
|
4.6
|
|
|
Total operating expenses
|
|
1,287.1
|
|
|
1,139.2
|
|
|
13.0
|
|
|
83.6
|
|
|
85.6
|
|
|
Income from equity investees
|
|
86.6
|
|
|
63.9
|
|
|
35.5
|
|
|
5.6
|
|
|
4.8
|
|
|
Operating income
|
|
$
|
339.1
|
|
|
$
|
256.1
|
|
|
32.4
|
%
|
|
22.0
|
%
|
|
19.2
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
|
|
29.5
|
%
|
|
30.1
|
%
|
|
Other operating expenses as a % of non-company-operated store
revenues
|
|
|
|
|
|
|
|
22.9
|
%
|
|
22.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
%
Change
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
Quarter Ended
|
|
|
|
|
|
|
|
As a % of EMEA
total net revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
127.5
|
|
|
$
|
182.8
|
|
|
(30.3
|
)%
|
|
55.0
|
%
|
|
68.1
|
%
|
|
Licensed stores
|
|
90.9
|
|
|
73.3
|
|
|
24.0
|
|
|
39.2
|
|
|
27.3
|
|
|
Foodservice
|
|
13.3
|
|
|
12.2
|
|
|
9.0
|
|
|
5.7
|
|
|
4.5
|
|
|
Total net revenues
|
|
231.7
|
|
|
268.3
|
|
|
(13.6
|
)
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
122.6
|
|
|
136.6
|
|
|
(10.2
|
)
|
|
52.9
|
|
|
50.9
|
|
|
Store operating expenses
|
|
50.3
|
|
|
66.5
|
|
|
(24.4
|
)
|
|
21.7
|
|
|
24.8
|
|
|
Other operating expenses
|
|
14.1
|
|
|
13.9
|
|
|
1.4
|
|
|
6.1
|
|
|
5.2
|
|
|
Depreciation and amortization expenses
|
|
7.6
|
|
|
10.7
|
|
|
(29.0
|
)
|
|
3.3
|
|
|
4.0
|
|
|
General and administrative expenses
|
|
9.4
|
|
|
13.3
|
|
|
(29.3
|
)
|
|
4.1
|
|
|
5.0
|
|
|
Total operating expenses
|
|
204.0
|
|
|
241.0
|
|
|
(15.4
|
)
|
|
88.0
|
|
|
89.8
|
|
|
Income from equity investees
|
|
—
|
|
|
0.3
|
|
|
(100.0
|
)
|
|
—
|
|
|
0.1
|
|
|
Operating income
|
|
$
|
27.7
|
|
|
$
|
27.6
|
|
|
0.4
|
%
|
|
12.0
|
%
|
|
10.3
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
|
|
39.5
|
%
|
|
36.4
|
%
|
|
Other operating expenses as a % of non-company-operated store
revenues
|
|
|
|
|
|
|
|
13.5
|
%
|
|
16.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
273.4
|
|
|
$
|
401.7
|
|
|
(31.9
|
)%
|
|
55.4
|
%
|
|
69.1
|
%
|
|
Licensed stores
|
|
193.0
|
|
|
153.1
|
|
|
26.1
|
|
|
39.1
|
|
|
26.3
|
|
|
Foodservice
|
|
27.5
|
|
|
26.6
|
|
|
3.4
|
|
|
5.6
|
|
|
4.6
|
|
|
Total net revenues
|
|
493.9
|
|
|
581.4
|
|
|
(15.0
|
)
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales including occupancy costs
|
|
258.7
|
|
|
288.0
|
|
|
(10.2
|
)
|
|
52.4
|
|
|
49.5
|
|
|
Store operating expenses
|
|
97.1
|
|
|
140.4
|
|
|
(30.8
|
)
|
|
19.7
|
|
|
24.1
|
|
|
Other operating expenses
|
|
30.2
|
|
|
28.7
|
|
|
5.2
|
|
|
6.1
|
|
|
4.9
|
|
|
Depreciation and amortization expenses
|
|
15.2
|
|
|
22.2
|
|
|
(31.5
|
)
|
|
3.1
|
|
|
3.8
|
|
|
General and administrative expenses
|
|
21.1
|
|
|
27.8
|
|
|
(24.1
|
)
|
|
4.3
|
|
|
4.8
|
|
|
Total operating expenses
|
|
422.3
|
|
|
507.1
|
|
|
(16.7
|
)
|
|
85.5
|
|
|
87.2
|
|
|
Income from equity investees
|
|
—
|
|
|
1.5
|
|
|
(100.0
|
)
|
|
—
|
|
|
0.3
|
|
|
Operating income
|
|
$
|
71.6
|
|
|
$
|
75.8
|
|
|
(5.5
|
)%
|
|
14.5
|
%
|
|
13.0
|
%
|
|
Supplemental Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses as a % of company-operated store revenues
|
|
|
|
|
|
|
|
35.5
|
%
|
|
35.0
|
%
|
|
Other operating expenses as a % of non-company-operated store
revenues
|
|
|
|
|
|
|
|
13.7
|
%
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Channel Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
%
Change
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
Quarter Ended
|
|
|
|
|
|
|
|
As a % of
Channel Development
total net
revenues
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
CPG(1)
|
|
$
|
346.3
|
|
|
$
|
354.4
|
|
|
(2.3
|
)%
|
|
75.1
|
%
|
|
76.8
|
%
|
|
Foodservice
|
|
115.0
|
|
|
106.8
|
|
|
7.7
|
|
|
24.9
|
|
|
23.2
|
|
|
Total net revenues
|
|
461.3
|
|
|
461.2
|
|
|
—
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales
|
|
254.5
|
|
|
252.9
|
|
|
0.6
|
|
|
55.2
|
|
|
54.8
|
|
|
Other operating expenses
|
|
50.5
|
|
|
53.5
|
|
|
(5.6
|
)
|
|
10.9
|
|
|
11.6
|
|
|
Depreciation and amortization expenses
|
|
0.6
|
|
|
0.7
|
|
|
(14.3
|
)
|
|
0.1
|
|
|
0.2
|
|
|
General and administrative expenses
|
|
2.1
|
|
|
4.7
|
|
|
(55.3
|
)
|
|
0.5
|
|
|
1.0
|
|
|
Total operating expenses
|
|
307.7
|
|
|
311.8
|
|
|
(1.3
|
)
|
|
66.7
|
|
|
67.6
|
|
|
Income from equity investees
|
|
40.0
|
|
|
32.6
|
|
|
22.7
|
|
|
8.7
|
|
|
7.1
|
|
|
Operating income
|
|
$
|
193.6
|
|
|
$
|
182.0
|
|
|
6.4
|
%
|
|
42.0
|
%
|
|
39.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Two Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
|
|
|
|
CPG(1)
|
|
$
|
783.3
|
|
|
$
|
753.6
|
|
|
3.9
|
%
|
|
77.2
|
%
|
|
77.4
|
%
|
|
Foodservice
|
|
231.6
|
|
|
219.7
|
|
|
5.4
|
|
|
22.8
|
|
|
22.6
|
|
|
Total net revenues
|
|
1,014.9
|
|
|
973.3
|
|
|
4.3
|
|
|
100.0
|
|
|
100.0
|
|
|
Cost of sales
|
|
543.0
|
|
|
538.4
|
|
|
0.9
|
|
|
53.5
|
|
|
55.3
|
|
|
Other operating expenses
|
|
110.9
|
|
|
113.8
|
|
|
(2.5
|
)
|
|
10.9
|
|
|
11.7
|
|
|
Depreciation and amortization expenses
|
|
1.2
|
|
|
1.4
|
|
|
(14.3
|
)
|
|
0.1
|
|
|
0.1
|
|
|
General and administrative expenses
|
|
5.4
|
|
|
8.8
|
|
|
(38.6
|
)
|
|
0.5
|
|
|
0.9
|
|
|
Total operating expenses
|
|
660.5
|
|
|
662.4
|
|
|
(0.3
|
)
|
|
65.1
|
|
|
68.1
|
|
|
Income from equity investees
|
|
82.0
|
|
|
64.3
|
|
|
27.5
|
|
|
8.1
|
|
|
6.6
|
|
|
Operating income
|
|
$
|
436.4
|
|
|
$
|
375.2
|
|
|
16.3
|
%
|
|
43.0
|
%
|
|
38.5
|
%
|
|
|
|
(1) CPG revenues in Q2 FY17 included an
unfavorable revenue deduction adjustment pertaining to prior
periods of $20.6 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Segments
|
|
|
|
|
|
|
|
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
%
Change
|
|
Quarter Ended
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
45.2
|
|
|
$
|
55.4
|
|
|
(18.4
|
)%
|
|
Licensed stores
|
|
0.7
|
|
|
1.0
|
|
|
(30.0
|
)
|
|
CPG, foodservice and other
|
|
65.8
|
|
|
73.8
|
|
|
(10.8
|
)
|
|
Total net revenues
|
|
111.7
|
|
|
130.2
|
|
|
(14.2
|
)
|
|
Cost of sales including occupancy costs
|
|
74.1
|
|
|
83.0
|
|
|
(10.7
|
)
|
|
Store operating expenses
|
|
34.5
|
|
|
30.9
|
|
|
11.7
|
|
|
Other operating expenses
|
|
20.7
|
|
|
27.2
|
|
|
(23.9
|
)
|
|
Depreciation and amortization expenses
|
|
3.5
|
|
|
3.4
|
|
|
2.9
|
|
|
General and administrative expenses
|
|
4.4
|
|
|
4.9
|
|
|
(10.2
|
)
|
|
Total operating expenses
|
|
137.2
|
|
|
149.4
|
|
|
(8.2
|
)
|
|
Operating loss
|
|
$
|
(25.5
|
)
|
|
$
|
(19.2
|
)
|
|
32.8
|
%
|
|
|
|
|
|
|
|
|
|
Two Quarters Ended
|
|
|
|
|
|
|
|
Net revenues:
|
|
|
|
|
|
|
|
Company-operated stores
|
|
$
|
116.2
|
|
|
$
|
136.3
|
|
|
(14.7
|
)%
|
|
Licensed stores
|
|
1.7
|
|
|
2.2
|
|
|
(22.7
|
)
|
|
CPG, foodservice and other
|
|
148.9
|
|
|
160.4
|
|
|
(7.2
|
)
|
|
Total net revenues
|
|
266.8
|
|
|
298.9
|
|
|
(10.7
|
)
|
|
Cost of sales including occupancy costs
|
|
164.5
|
|
|
178.3
|
|
|
(7.7
|
)
|
|
Store operating expenses
|
|
65.2
|
|
|
61.1
|
|
|
6.7
|
|
|
Other operating expenses
|
|
38.2
|
|
|
50.8
|
|
|
(24.8
|
)
|
|
Depreciation and amortization expenses
|
|
6.3
|
|
|
7.0
|
|
|
(10.0
|
)
|
|
General and administrative expenses
|
|
8.0
|
|
|
14.8
|
|
|
(45.9
|
)
|
|
Total operating expenses
|
|
282.2
|
|
|
312.0
|
|
|
(9.6
|
)
|
|
Operating loss
|
|
$
|
(15.4
|
)
|
|
$
|
(13.1
|
)
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information
The following supplemental information is provided for historical and
comparative purposes.
|
U.S. Supplemental Data
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
($ in millions)
|
|
Apr 2, 2017
|
|
Mar 27, 2016
|
|
Change
|
|
Revenues
|
|
$3,417.0
|
|
$3,186.5
|
|
7%
|
|
Comparable Store Sales Growth(1)
|
|
3%
|
|
7%
|
|
|
|
Change in Transactions
|
|
(2)%
|
|
3%
|
|
|
|
Change in Ticket
|
|
4%
|
|
5%
|
|
|
|
(1)
|
|
Includes only Starbucks company-operated stores open 13 months or
longer. Comparable store sales exclude the effect of fluctuations in
foreign currency exchange rates.
|
|
|
|
Store Data
|
|
|
|
Net stores opened/(closed) and transferred during the period
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Two Quarters Ended
|
|
Stores open as of
|
|
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
82
|
|
|
38
|
|
|
157
|
|
|
119
|
|
|
9,176
|
|
|
8,790
|
|
Licensed stores
|
|
118
|
|
|
94
|
|
|
294
|
|
|
184
|
|
|
6,882
|
|
|
6,316
|
|
Total Americas
|
|
200
|
|
|
132
|
|
|
451
|
|
|
303
|
|
|
16,058
|
|
|
15,106
|
|
China/Asia Pacific:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
67
|
|
|
54
|
|
|
171
|
|
|
144
|
|
|
2,982
|
|
|
2,596
|
|
Licensed stores
|
|
120
|
|
|
121
|
|
|
319
|
|
|
312
|
|
|
3,951
|
|
|
3,322
|
|
Total China/Asia Pacific
|
|
187
|
|
|
175
|
|
|
490
|
|
|
456
|
|
|
6,933
|
|
|
5,918
|
|
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
—
|
|
|
(10
|
)
|
|
(18
|
)
|
|
(49
|
)
|
|
505
|
|
|
688
|
|
Licensed stores
|
|
46
|
|
|
57
|
|
|
159
|
|
|
175
|
|
|
2,278
|
|
|
1,800
|
|
Total EMEA
|
|
46
|
|
|
47
|
|
|
141
|
|
|
126
|
|
|
2,783
|
|
|
2,488
|
|
All Other Segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated stores
|
|
(7
|
)
|
|
(4
|
)
|
|
(9
|
)
|
|
(5
|
)
|
|
349
|
|
|
370
|
|
Licensed stores
|
|
1
|
|
|
—
|
|
|
3
|
|
|
(2
|
)
|
|
38
|
|
|
39
|
|
Total All Other Segments
|
|
(6
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
(7
|
)
|
|
387
|
|
|
409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
|
|
427
|
|
|
350
|
|
|
1,076
|
|
|
878
|
|
|
26,161
|
|
|
23,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Disclosure
In addition to the GAAP results provided in this release, the company
provides certain non-GAAP financial measures. Non-GAAP financial
measures are not in accordance with, or alternatives for, generally
accepted accounting principles in the United States. Our non-GAAP
financial measures of non-GAAP operating income, non-GAAP operating
margin and non-GAAP EPS exclude the below listed items. 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.
|
Non-GAAP Exclusion
|
|
Rationale
|
|
Starbucks Japan acquisition-related items
|
|
Management excludes Starbucks Japan acquisition-related transaction
costs as 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 excludes Starbucks Japan
integration costs and amortization of the acquired intangible assets
when evaluating performance because these expenses 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.
|
|
Sale of Germany retail operations
|
|
Management excludes the net gain, associated costs and changes in
estimated indemnifications related to the sale of our Germany retail
operations as these items do not reflect future gains, losses or tax
impacts and do not contribute to a meaningful evaluation of the
company's past or future operating performance.
|
|
Other tax matters
|
|
Management excludes incremental tax benefits in the U.S. as these
tax benefits do not contribute to a meaningful evaluation of the
company's past or future operating performance.
|
Non-GAAP operating income, non-GAAP operating margin and non-GAAP EPS
may have limitations as analytical tools. 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
|
|
|
|
|
|
Apr 2,
2017
|
|
Mar 27,
2016
|
|
Change
|
|
Consolidated
|
|
|
|
|
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
935.4
|
|
|
$
|
864.2
|
|
|
8.2%
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
13.8
|
|
|
13.9
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
949.2
|
|
|
$
|
878.1
|
|
|
8.1%
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported (GAAP)
|
|
17.7
|
%
|
|
17.3
|
%
|
|
40 bps
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
0.3
|
|
|
0.3
|
|
|
|
|
Non-GAAP operating margin
|
|
17.9
|
%
|
|
17.6
|
%
|
|
30 bps
|
|
|
|
|
|
|
|
|
|
Diluted net earnings per share, as reported (GAAP)
|
|
$
|
0.45
|
|
|
$
|
0.39
|
|
|
15.4%
|
|
Starbucks Japan acquisition-related items - other(1)
|
|
0.01
|
|
|
0.01
|
|
|
|
|
Sale of Germany retail operations(2)
|
|
(0.01
|
)
|
|
—
|
|
|
|
|
Income tax effect on Non-GAAP adjustments(3)
|
|
—
|
|
|
—
|
|
|
|
|
Non-GAAP net earnings per share
|
|
$
|
0.45
|
|
|
$
|
0.39
|
|
|
15.4%
|
|
|
|
|
|
|
|
|
|
China/Asia Pacific (CAP)
|
|
|
|
|
|
|
|
Operating income, as reported (GAAP)
|
|
$
|
175.9
|
|
|
$
|
129.3
|
|
|
36.0%
|
|
Starbucks Japan acquisition-related items(1)
|
|
13.7
|
|
|
13.1
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
189.6
|
|
|
$
|
142.4
|
|
|
33.1%
|
|
|
|
|
|
|
|
|
|
Operating margin, as reported (GAAP)
|
|
22.9
|
%
|
|
19.1
|
%
|
|
380 bps
|
|
Starbucks Japan acquisition-related items(1)
|
|
1.8
|
|
|
1.9
|
|
|
|
|
Non-GAAP operating margin
|
|
24.7
|
%
|
|
21.0
|
%
|
|
370 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 a Q2 FY17 adjustment associated with estimated
indemnifications related to the sale of our Germany retail
operations, which occurred in FY16.
|
|
(3)
|
|
Income tax effect on non-GAAP adjustments was determined based on
the nature of the underlying items and their relevant jurisdictional
tax rates.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170427006662/en/
Source: Starbucks Corporation