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Starbucks Reports Record Second Quarter Fiscal 2013 Results



  Starbucks Reports Record Second Quarter Fiscal 2013 Results

Continued Strong Comparable Store Sales Growth of 7% in the US and 6% Globally

Revenues Increase 11% to a Q2 Record $3.6 Billion; Operating Income Rises 26%

            Record Q2 EPS of $0.51 Includes $0.03 Non-Routine Gain

                     Company Raises Full Year EPS Target

Business Wire

SEATTLE -- April 25, 2013

Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its
13-week fiscal second quarter and 26-week fiscal year to date ended March 31,
2013.

Fiscal Second Quarter 2013 Highlights:

  * Total net revenues increased 11% to $3.6 billion
  * Global comparable store sales grew 6%, driven by a 4% increase in traffic
    and a 2% increase in average ticket, marking the 13th consecutive quarter
    of global comp growth greater than 5%
  * Operating margin expanded 180 basis points to a Q2 record 15.3%
  * Consolidated operating income grew 26% to $544 million
  * Record Q2 EPS of $0.51 per share included a $0.03 non-routine gain on the
    sale of the company's equity in the joint venture that operates Starbucks
    stores in Mexico; excluding this gain, EPS grew 20%
  * Dollars loaded on Starbucks Cards through both new card activations and
    reloads increased 32% over Q2 FY12
  * Starbucks added 590 net new stores globally, including 337 Teavana stores
  * The company has raised its full year earnings per share target range to
    $2.12 to $2.18 from the previous target range of $2.06 to $2.15

"Starbucks record operating performance in Q2 continues to demonstrate the
underlying strength and resilience of our expanding global business, and the
increasing relevance of the Starbucks brand to consumers all around the
world,” said Howard Schultz, chairman, president and chief executive officer.
“Innovation and an enhanced customer experience drove strong comp sales and
revenue growth, while a laser focus on improving efficiency and controlling
costs enabled us to deliver record margins and earnings. Starbucks has never
been better positioned to achieve the aspirational goal we have set of
becoming one of the world's most respected, admired and enduring brands.”

“Record second quarter results once again illustrate the power of the
Starbucks business and brand,” commented Troy Alstead, chief financial
officer. “Continued strength in our US operations, despite ongoing uncertainty
in the macro environment, has fueled our performance and allows us to pursue
long term strategic initiatives across our segments. Given our performance in
the first half of the year and the considerable momentum in the business as we
enter the second-half, we are raising our full year earnings growth target.”

 
Second Quarter Fiscal 2013 Summary
                                
                               Quarter Ended Mar 31, 2013
Comparable Store               Sales Growth       Change in          Change in
Sales^(1)                                         Transactions       Ticket
Consolidated                   6%                 4%                 2%
Americas                       6%                 5%                 2%
EMEA                           (2)%               (1)%               0%
CAP                            8%                 4%                 3%
^(1) Includes only Starbucks company-operated stores open 13 months or longer.
 
                                                                      
Operating Results              Quarter Ended
($ in millions,
except per share               Mar 31, 2013       Apr 1, 2012        Change
amounts)
Net New Stores^(1)             590                176                414
Revenues                       $3,555.9           $3,195.9           11%
Operating Income               $544.1             $430.4             26%
Operating Margin               15.3%              13.5%              180 bps
EPS                            $0.51              $0.40              28%
^(1) Includes 337 Teavana stores added in the second quarter of fiscal 2013.
 

Consolidated net revenues reached a Q2 record $3.6 billion in Q2 FY13, an
increase of 11% over Q2 FY12. The increase was due to a 6% increase in global
comparable store sales and incremental revenues from the opening of 1,448 net
new stores over the past 12 months, including the addition of 337 Teavana
stores.

Consolidated operating income increased 26% to a Q2 record $544.1 million,
compared to $430.4 million for the same period a year ago. Operating margin
expanded 180 basis points to 15.3% this quarter, compared to 13.5% in Q2 FY12.
The margin increase was primarily driven by sales leverage and lower coffee
costs.

                                                                    
Q2 Americas
Segment Results
                                                                       
                               Quarter Ended
($ in millions)                Mar 31,            Apr 1, 2012         Change
                               2013
Net New Stores^(1)             95                 72                  23
Revenues                       $2,604.1           $2,374.7            10%
Operating Income               $549.7             $449.5              22%
Operating Margin               21.1%              18.9%               220 bps
^(1) Americas store data has been adjusted to exclude Seattle's Best Coffee,
Evolution Fresh and Tazo Retail, which are now reported within All Other
Segments.
 

Net revenues for the Americas segment were $2.6 billion in Q2 FY13, an
increase of 10% over Q2 FY12. The increase was primarily due to a 6% increase
in comparable store sales, comprised of a 5% increase in the number of
transactions and a 2% increase in average ticket. Also contributing to the net
revenue increase was incremental revenues from 522 net new store openings over
the past 12 months.

Operating income increased to $549.7 million in Q2 FY13, representing growth
of 22% compared to $449.5 million for the same period a year ago. Operating
margin expanded 220 basis points to 21.1% in Q2 FY13 driven by sales leverage
and lower coffee costs.

                                                              
Q2 EMEA Segment Results
                                                                
                              Quarter Ended
($ in millions)               Mar 31, 2013     Apr 1, 2012     Change
Net New Stores                22               17              5
Revenues                      $273.2           $272.4          0%
Operating Income              $5.2             ($7.0)          nm
Operating Margin              1.9%             (2.6)%          450 bps
                                                                

Net revenues for the EMEA segment were $273.2 million in Q2 FY13, flat to Q2
FY12. Revenue growth of 48% in licensed stores, driven by the opening of 117
net new stores in the last 12 months, was offset by a decline in
company-operated revenue primarily driven by prior store portfolio
optimization activities.

Operating income of $5.2 million in Q2 FY13 grew $12.2 million from an
operating loss of $7.0 million in Q2 FY12. Operating margin increased 450
basis points to 1.9%. Margin expansion was primarily driven by a continued
focus on cost management and a shift in our store portfolio to more licensed
stores. Also contributing to the margin expansion was a reduction to the
estimated asset retirement obligations of our store leases in the region.

                                                                    
Q2 China/Asia Pacific Segment
Results
                                                                      
                                    Quarter Ended
($ in millions)                     Mar 31, 2013     Apr 1, 2012     Change
Net New Stores                      147              83              64
Revenues                            $213.6           $174.6          22%
Operating Income                    $68.3            $68.2           0%
Operating Margin                    32.0%            39.1%           (710) bps
                                                                      

Net revenues for the China/Asia Pacific segment were $213.6 million in Q2
FY13, an increase of 22% over Q2 FY12. The increase was primarily due to
incremental revenues from 516 net new store openings over the past 12 months
and an 8% increase in comparable store sales.

Operating income of $68.3 million in Q2 FY13 was flat to the prior-year
quarter. Operating margin decreased 710 basis points to 32.0% this quarter
compared to 39.1% in Q2 FY12. The margin contraction was primarily due to
investment spending to support continued growth in China and a shift in the
composition of our store portfolio from licensed to company-operated stores.
Also contributing to the margin contraction was the absence this year of
non-routine income included in income from equity investees in the prior year.

                                                                      
Q2 Channel Development Segment
Results
                                                                        
                                      Quarter Ended
($ in millions)                       Mar 31, 2013     Apr 1, 2012     Change
Revenues                              $343.5           $321.5          7%
Operating Income                      $94.1            $79.5           18%
Operating Margin                      27.4%            24.7%           270 bps
                                                                        

Channel Development net revenues were $343.5 million in Q2 FY13, an increase
of 7% over Q2 FY12, primarily driven by sales of Starbucks- and Tazo-branded
K-Cup® packs.

Operating income grew 18% to $94.1 million in Q2 FY13 compared to $79.5
million for the same period a year ago. Operating margin increased 270 basis
points to 27.4% in Q2 FY13 compared to 24.7% in the prior-year period. The
margin expansion was primarily due to lower coffee costs.

Segment Reporting Update

Beginning in Q2 FY13, we removed unallocated corporate expenses from Other.
Other is now referred to as All Other Segments and includes Teavana, Seattle's
Best Coffee, Evolution Fresh, Tazo Retail and Digital Ventures. Unallocated
corporate operating expenses, which pertain primarily to corporate
administrative functions that support the operating segments but are not
specifically attributable to or managed by any segment, are now a reconciling
item between total segment operating results and consolidated financial
results. While our consolidated results are not impacted, our historical
segment financial information has been revised to be consistent with the
current period presentation. A historical recast of results can be found on
the Investor Relations page on Starbucks.com.

                                                                    
Q2 All Other Segments Results
                                                                      
                                    Quarter Ended
($ in millions)                     Mar 31, 2013     Apr 1, 2012     Change
Net New Stores                      326              4               322
Revenues                            $121.5           $52.7           131%
Operating loss                      ($4.1)           ($6.7)          (39)%
                                                                      

Net revenues for All Other Segments were $121.5 million in Q2 FY13, an
increase of 131% over Q2 FY12, primarily driven by the addition of Teavana
retail store sales in the current quarter.

Operating loss was $4.1 million in Q2 FY13 compared to a loss of $6.7 million
for the same period a year ago. The $2.6 million improvement was primarily
driven by the acquisition of Teavana in Q2 FY13.

                             
Year to Date
Financial Results
                                
                               Two Quarters Ended Mar 31, 2013
Comparable Store               Sales Growth       Change in          Change in
Sales^(1)                                         Transactions       Ticket
Consolidated                   6%                 4%                 2%
Americas                       6%                 4%                 2%
EMEA                           (1)%               0%                 (2)%
CAP                            9%                 6%                 3%
^(1) Includes only Starbucks company-operated stores open 13 months or longer.
 
                                                                      
Operating Results              Two Quarters Ended
($ in millions,
except per share               Mar 31, 2013       Apr 1, 2012        Change
amounts)
Net New Stores^(1)             802                417                385
Revenues                       $7,355.4           $6,631.8           11%
Operating Income               $1,174.6           $986.4             19%
Operating Margin               16.0%              14.9%              110 bps
EPS                            $1.08              $0.90              20%
^(1) Includes 337 Teavana stores added in the second quarter of fiscal 2013.
 

Fiscal 2013 Targets

Starbucks reaffirms the following fiscal 2013 targets:

  * Revenue growth of approximately 10% - 13%
  * Mid single digit global comparable store sales growth
  * Full-year consolidated operating margin improvement of approximately 100
    basis points over FY12 results
  * Capital expenditures of approximately $1.2 billion for the full year

Starbucks has updated the following fiscal 2013 targets:

  * The company plans to open approximately 1,650 net new stores globally,
    reiterating the previous target of 1,300 Starbucks stores and including
    350 Teavana stores acquired and to be opened in the year
  * Starbucks has raised its full year earnings per share target to a range of
    $2.12 - $2.18 consisting of $0.50 - $0.53 in Q3 and $0.54 - $0.57 in Q4

Company Updates

  * Starbucks was recognized by Fortune magazine as the fifth “Most Admired
    Company” in the world and Ethisphere Magazine named Starbucks one of the
    World's Most Ethical Companies for the seventh year in a row.
  * The company opened its first store in Vietnam on January 31, an iconic
    flagship location in Ho Chi Minh City.
  * Starbucks® coffee K-cup® packs were recognized as the most successful CPG
    beverage product of 2012 by Information Resources, Inc. (IRI), a leading
    market research company.
  * As part of the ongoing evaluation of appropriate ownership structures in
    international markets, Starbucks sold its 18% equity in Mexico to long
    time trusted business partner, Alsea, S.A.B. de C.V.
  * Starbucks announced the expansion of its loyalty and rewards program with
    an industry-first innovation that will enable customers to earn rewards
    for grocery channel purchases that can be redeemed in Starbucks retail
    stores.
  * The company expanded its comprehensive ethical sourcing program with a new
    research and development center in Costa Rica; the 240-hectare farm will
    be converted into a global agronomy center and is part of Starbucks
    commitment to ethically sourcing 100 percent of its coffee by 2015.
  * Starbucks announced the appointment of two new members to its senior
    leadership team; Sharon Rothstein was named global chief marketing officer
    and Matthew Ryan will serve as global chief strategy officer.
  * The Board of Directors declared a cash dividend of $0.21 per share,
    payable on May 24, 2013, to shareholders of record as of May 9, 2013.
  * The company repurchased approximately 3 million shares of common stock in
    Q2 FY13; approximately 26 million shares remain available for purchase
    under previous authorizations.

Conference Call

Starbucks will be holding a conference call today at 2:00 p.m. Pacific Time,
which will be hosted by Howard Schultz, chairman, president and ceo, Troy
Alstead, cfo and Cliff Burrows, president, Americas. The call will be webcast
and can be accessed at http://investor.starbucks.com. A replay of the webcast
will be available through approximately 5:00 p.m. Pacific Time on Friday, May
24, 2013. A replay of the call will also be available via telephone through
9:00 p.m. Pacific Time on Saturday, April 27, 2013 by calling 1-855-859-2056,
reservation number 36849786.

The company’s consolidated statements of earnings, operating segment results,
and other additional information have been provided on the following pages in
accordance with current year classifications. This information should be
reviewed in conjunction with this press release. Please refer to the company’s
Annual Report on Form 10-K for the fiscal year ended September 30, 2012 for
additional information.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing
and roasting the highest quality arabica coffee in the world. Today, with
stores around the globe, the company is the premier roaster and retailer of
specialty coffee in the world. Through our unwavering commitment to excellence
and our guiding principles, we bring the unique Starbucks Experience to life
for every customer through every cup. To share in the experience, please visit
us in our stores or online at www.starbucks.com.

Forward-Looking Statements

This release contains forward-looking statements relating to certain company
initiatives, strategies and plans, as well as trends in or expectations
regarding our diversified business model, the strength, health and potential
of our business and brand, business momentum, growth and growth opportunities,
earnings per share, revenues, operating margins, profits, capital
expenditures, comparable store sales and store openings and closings. These
forward-looking statements are based on currently available operating,
financial and competitive information and are subject to a number of
significant risks and uncertainties. Actual future results may differ
materially depending on a variety of factors including, but not limited to,
coffee, dairy and other raw material prices and availability, costs associated
with, and the successful execution of, the company's initiatives, strategies
and plans, the acceptance of the company's products by our customers,
fluctuations in U.S. and international economies and currencies, the impact of
competition, the effect of legal proceedings, and other risks detailed in the
company filings with the Securities and Exchange Commission, including the
“Risk Factors” section of Starbucks Annual Report on Form 10-K for the fiscal
year ended September 30, 2012. 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
                       Mar 31,         Apr 1,          %           Mar 31,     Apr 1,
Fiscal Year            2013            2012            Change      2013        2012
Ended
                                                                   As a % of total
                                                                   net revenues
Net revenues:
Company-operated       $ 2,807.7       $ 2,521.2       11.4  %     79.0  %     78.9  %
stores
Licensed stores          322.1           290.3         11.0        9.1         9.1
CPG, foodservice         426.1           384.4         10.8        12.0        12.0   
and other
Total net                3,555.9         3,195.9       11.3        100.0       100.0
revenues
Cost of sales
including                1,530.4         1,411.9       8.4         43.0        44.2
occupancy costs
Store operating          1,038.4         956.5         8.6         29.2        29.9
expenses
Other operating          112.1           105.3         6.5         3.2         3.3
expenses
Depreciation and
amortization             153.1           137.1         11.7        4.3         4.3
expenses
General and
administrative           230.3           206.9         11.3        6.5         6.5    
expenses
Total Operating          3,064.3         2,817.7       8.8         86.2        88.2
Expenses
Income from              52.5            52.2          0.6         1.5         1.6    
equity investees
Operating income         544.1           430.4         26.4        15.3        13.5
Interest income          50.8            35.3          43.9        1.4         1.1
and other, net
Interest expense         (6.1    )       (8.8    )     (30.7 )     (0.2  )     (0.3  )
Earnings before          588.8           456.9         28.9        16.6        14.3
income taxes
Income taxes             198.1           146.8         34.9        5.6         4.6    
Net earnings
including                390.7           310.1         26.0        11.0        9.7
noncontrolling
interest
Net earnings
attributable to          0.3             0.2           50.0        —           —      
noncontrolling
interest
Net earnings
attributable to        $ 390.4         $ 309.9         26.0  %     11.0  %     9.7   %
Starbucks
                                                                                
Net earnings per
common share -         $ 0.51          $ 0.40          27.5  %
diluted
Weighted avg.
shares                   761.3           773.3
outstanding -
diluted
                                                                                
Cash dividends
declared per           $ 0.21          $ 0.17
share
                                                                                
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                      37.0  %     37.9  %
company-operated
stores revenue
Effective tax
rate including                                                     33.6  %     32.1  %
noncontrolling
interest
                                                                                

STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited, in millions, except per share data)
                                                                  
                       Two Quarters Ended                          Two Quarters Ended
                       Mar 31,         Apr 1,          %           Mar 31,     Apr 1,
Fiscal Year            2013            2012            Change      2013        2012
Ended
                                                                   As a % of total
                                                                   net revenues
Net revenues:
Company-operated       $ 5,797.3       $ 5,253.0       10.4  %     78.8  %     79.2  %
stores
Licensed stores          672.2           596.9         12.6        9.1         9.0
CPG, foodservice         885.9           781.9         13.3        12.0        11.8   
and other
Total net                7,355.4         6,631.8       10.9        100.0       100.0
revenues
Cost of sales
including                3,151.1         2,908.0       8.4         42.8        43.8
occupancy costs
Store operating          2,127.9         1,952.2       9.0         28.9        29.4
expenses
Other operating          244.6           212           15.4        3.3         3.2
expenses
Depreciation and
amortization             302.0           271.9         11.1        4.1         4.1
expenses
General and
administrative           462.2           398.4         16.0        6.3         6.0    
expenses
Total Operating          6,287.8         5,742.5       9.5         85.5        86.6
Expenses
Income from              107.0           97.1          10.2        1.5         1.5    
equity investees
Operating income         1,174.6         986.4         19.1        16.0        14.9
Interest income          48.0            58.5          (17.9 )     0.7         0.9
and other, net
Interest expense         (12.7   )       (17.4   )     (27.0 )     (0.2  )     (0.3  )
Earnings before          1,209.9         1,027.5       17.8        16.4        15.5
income taxes
Income taxes             386.8           335.2         15.4        5.3         5.1    
Net earnings
including                823.1           692.3         18.9        11.2        10.4
noncontrolling
interest
Net earnings
attributable to          0.6             0.4           50.0        —           —      
noncontrolling
interest
Net earnings
attributable to        $ 822.5         $ 691.9         18.9  %     11.2  %     10.4  %
Starbucks
                                                                                
Net earnings per
common share -         $ 1.08          $ 0.90          20.0  %
diluted
Weighted avg.
shares                   761.3           770.9
outstanding -
diluted
                                                                                
Cash dividends
declared per           $ 0.42          $ 0.34
share
                                                                                
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                      36.7  %     37.2  %
company-operated
stores revenue
Effective tax
rate including                                                     32.0  %     32.6  %
noncontrolling
interest
                                                                                

Segment Results

The tables below present reportable segment results net of intersegment
eliminations (in millions):

Americas                                                                  
                                                                            
                       Mar 31,       Apr 1,        %           Mar 31,     Apr 1,
                       2013          2012          Change      2013        2012
                                                               As a % of Americas
Quarter Ended                                                  total net revenues
Net revenues:
Company-operated       $ 2,376.2     $ 2,170.2     9.5   %     91.2  %     91.4  %
stores
Licensed stores          216.7         198.9       8.9         8.3         8.4
CPG, foodservice         11.2          5.6         100.0       0.4         0.2    
and other
Total net                2,604.1       2,374.7     9.7         100.0       100.0
revenues
Cost of sales
including                1,000.0       941.6       6.2         38.4        39.7
occupancy costs
Store operating          891.9         837.4       6.5         34.2        35.3
expenses
Other operating          21.2          18.7        13.4        0.8         0.8
expenses
Depreciation and
amortization             105.6         97.2        8.6         4.1         4.1
expenses
General and
administrative           38.1          32.4        17.6        1.5         1.4    
expenses
Total Operating          2,056.8       1,927.3     6.7         79.0        81.2
Expenses
Income from              2.4           2.1         14.3        0.1         0.1    
equity investees
Operating income       $ 549.7       $ 449.5       22.3  %     21.1  %     18.9  %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                  37.5  %     38.6  %
company-operated
stores revenue
                                                                            
Two Quarters
Ended
Net revenues:
Company-operated       $ 4,962.6     $ 4,526.3     9.6   %     91.1  %     91.4  %
stores
Licensed stores          455.8         415.3       9.8         8.4         8.4
CPG, foodservice         26.3          11.6        126.7       0.5         0.2    
and other
Total net                5,444.7       4,953.2     9.9         100.0       100.0
revenues
Cost of sales
including                2,092.5       1,948.3     7.4         38.4        39.3
occupancy costs
Store operating          1,851.7       1,712.2     8.1         34.0        34.6
expenses
Other operating          51.2          39.2        30.6        0.9         0.8
expenses
Depreciation and
amortization             211.0         194.3       8.6         3.9         3.9
expenses
General and
administrative           100.9         63.0        60.2        1.9         1.3    
expenses
Total Operating          4,307.3       3,957.0     8.9         79.1        79.9
Expenses
Income from              2.4           2.1         14.3        —           —      
equity investees
Operating income       $ 1,139.8     $ 998.3       14.2  %     20.9  %     20.2  %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                  37.3  %     37.8  %
company-operated
stores revenue
                                                                            

EMEA                                                                      
                                                                            
                       Mar 31,     Apr 1,        %             Mar 31,     Apr 1,
                       2013        2012          Change        2013        2012
                                                               As a % of EMEA
Quarter Ended                                                  total net revenues
Net revenues:
Company-operated       $ 219.0     $ 233.5       (6.2   )%     80.2  %     85.7  %
stores
Licensed stores          45.9        31.1        47.6          16.8        11.4
CPG, foodservice         8.3         7.8         6.4           3.0         2.9    
and other
Total net                273.2       272.4       0.3           100.0       100.0
revenues
Cost of sales
including                140.8       143.9       (2.2   )      51.5        52.8
occupancy costs
Store operating          83.2        91.9        (9.5   )      30.5        33.7
expenses
Other operating          10.7        8.9         20.2          3.9         3.3
expenses
Depreciation and
amortization             13.7        14.3        (4.2   )      5.0         5.2
expenses
General and
administrative           19.6        20.4        (3.9   )      7.2         7.5    
expenses
Total Operating          268.0       279.4       (4.1   )      98.1        102.6
Expenses
Income from              —           —           —             —           —      
equity investees
Operating              $ 5.2       $ (7.0  )     nm            1.9   %     (2.6  )%
income/(loss)
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                  38.0  %     39.4  %
company-operated
stores revenue
                                                                            
Two Quarters
Ended
Net revenues:
Company-operated       $ 471.7     $ 497.9       (5.3   )%     81.4  %     86.5  %
stores
Licensed stores          89.8        62.4        43.9          15.5        10.8
CPG, foodservice         17.8        15.3        16.3          3.1         2.7    
and other
Total net                579.3       575.6       0.6           100.0       100.0
revenues
Cost of sales
including                293.3       294.4       (0.4   )      50.6        51.1
occupancy costs
Store operating          173.5       185.7       (6.6   )      29.9        32.3
expenses
Other operating          19.1        17.6        8.5           3.3         3.1
expenses
Depreciation and
amortization             27.9        28.5        (2.1   )      4.8         5.0
expenses
General and
administrative           38.0        37.8        0.5           6.6         6.6    
expenses
Total Operating          551.8       564.0       (2.2   )      95.3        98.0
Expenses
Income from              —           0.3         (100.0 )      —           0.1    
equity investees
Operating income       $ 27.5      $ 11.9        131.1  %      4.7   %     2.1   %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                  36.8  %     37.3  %
company-operated
stores revenue
                                                                            

China / Asia                                                          
Pacific (CAP)
                                                                        
                        Mar 31,     Apr 1,      %          Mar 31,     Apr 1,
                        2013        2012        Change     2013        2012
                                                           As a % of CAP
Quarter Ended                                              total net revenues
Net revenues:
Company-operated        $ 156.5     $ 117.5     33.2 %     73.3  %     67.3  %
stores
Licensed stores           57.1        57.1      —          26.7        32.7   
Total net                 213.6       174.6     22.3       100.0       100.0
revenues
Cost of sales
including                 104.9       86.8      20.9       49.1        49.7
occupancy costs
Store operating           40.3        27.2      48.2       18.9        15.6
expenses
Other operating           11.5        9.7       18.6       5.4         5.6
expenses
Depreciation and
amortization              8.5         5.6       51.8       4.0         3.2
expenses
General and
administrative            10.9        10.0      9.0        5.1         5.7    
expenses
Total Operating           176.1       139.3     26.4       82.4        79.8
Expenses
Income from               30.8        32.9      (6.4 )     14.4        18.8   
equity investees
Operating income        $ 68.3      $ 68.2      0.1  %     32.0  %     39.1  %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                              25.8  %     23.1  %
company-operated
stores revenue
                                                                        
Two Quarters
Ended
Net revenues:
Company-operated        $ 307.0     $ 228.8     34.2 %     71.8  %     67.0  %
stores
Licensed stores           120.7       112.7     7.1        28.2        33.0   
Total net                 427.7       341.5     25.2       100.0       100.0
revenues
Cost of sales
including                 211.4       171.2     23.5       49.4        50.1
occupancy costs
Store operating           79.7        54.3      46.8       18.6        15.9
expenses
Other operating           21.7        21.1      2.8        5.1         6.2
expenses
Depreciation and
amortization              15.9        10.6      50.0       3.7         3.1
expenses
General and
administrative            23.5        19.2      22.4       5.5         5.6    
expenses
Total Operating           352.2       276.4     27.4       82.3        80.9
Expenses
Income from               64.9        60.5      7.3        15.2        17.7   
equity investees
Operating income        $ 140.4     $ 125.6     11.8 %     32.8  %     36.8  %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                              26.0  %     23.7  %
company-operated
stores revenue
                                                                        

Channel                                                               
Development
                                                                        
                       Mar 31,     Apr 1,      %           Mar 31,     Apr 1,
                       2013        2012        Change      2013        2012
                                                           As a % of
                                                           Channel Development
Quarter Ended                                              total net revenues
Net revenues:
CPG                    $ 254.6     $ 237.4     7.2   %     74.1  %     73.8  %
Foodservice              88.9        84.1      5.7         25.9        26.2   
Total net                343.5       321.5     6.8         100.0       100.0
revenues
Cost of sales            212.6       204.7     3.9         61.9        63.7
Other operating          49.3        49.3      —           14.4        15.3
expenses
Depreciation and
amortization             0.3         0.3       —           0.1         0.1
expenses
General and
administrative           6.5         4.9       32.7        1.9         1.5    
expenses
Total Operating          268.7       259.2     3.7         78.2        80.6
Expenses
Income from              19.3        17.2      12.2        5.6         5.3    
equity investees
Operating income       $ 94.1      $ 79.5      18.4  %     27.4  %     24.7  %
                                                                        
Two Quarters
Ended
Net revenues:
CPG                    $ 542.9     $ 484.5     12.1  %     75.0  %     73.7  %
Foodservice              180.5       172.8     4.5         25.0        26.3   
Total net                723.4       657.3     10.1        100.0       100.0
revenues
Cost of sales            447.8       425.3     5.3         61.9        64.7
Other operating          112.4       99.5      13.0        15.5        15.1
expenses
Depreciation and
amortization             0.6         0.7       (14.3 )     0.1         0.1
expenses
General and
administrative           11.3        8.7       29.9        1.6         1.3    
expenses
Total Operating          572.1       534.2     7.1         79.1        81.3
Expenses
Income from              39.7        34.2      16.1        5.5         5.2    
equity investees
Operating income       $ 191.0     $ 157.3     21.4  %     26.4  %     23.9  %
                                                                        

All Other Segments                                                   
                                                                       
                                          Mar 31,       Apr 1,        %
                                          2013          2012          Change
Quarter Ended
Net revenues:
Company-operated stores                   $ 56.0        $ —           100.0 %
Licensed stores                             2.4           3.2         (25.0 )
CPG, foodservice and other                  63.1          49.5        27.5
Total net revenues                          121.5         52.7        130.6
Cost of sales including occupancy           69.7          34.4        102.6
costs
Store operating expenses                    23.0          —           100.0
Other operating expenses                    19.4          18.7        3.7
Depreciation and amortization               3.4           0.6         466.7
expenses
General and administrative expenses         10.1          5.7         77.2
Total Operating Expenses                    125.6         59.4        111.4
Operating loss                            $ (4.1  )     $ (6.7  )     (38.8 )%
                                                                       
Two Quarters Ended
Net revenues:
Company-operated stores                   $ 56.0        $ —           100.0 %
Licensed stores                             5.9           6.5         (9.2  )
CPG, foodservice and other                  118.4         97.7        21.2
Total net revenues                          180.3         104.2       73.0
Cost of sales including occupancy           106.0         68.3        55.2
costs
Store operating expenses                    23.0          —           100.0
Other operating expenses                    40.2          34.6        16.2
Depreciation and amortization               4.3           1.0         330.0
expenses
General and administrative expenses         15.0          9.8         53.1
Total Operating Expenses                    188.5         113.7       65.8
Operating loss                            $ (8.2  )     $ (9.5  )     (13.7 )%
                                                                       

                           Supplemental Information

The following supplemental information is provided for historical and
comparative purposes.

Fiscal Second Quarter 2013 U.S. Supplemental Data
                                                                      
                                    Quarter Ended                   
($ in millions)                     Mar 31, 2013     Apr 1, 2012     Change
Comparable Store Sales Growth       7%               8%
Change in Transactions              5%               7%
Change in Ticket                    2%               1%
Revenues                            $2,312.9         $2,115.1        9%
Operating Income                    $543.2           $434.3          25%
Operating Margin                    23.5%            20.5%           300 bps
                                                                      

Fiscal Second Quarter 2013 Store Data

The company’s store data for the periods presented are as follows:

                           Net stores opened (closed) during                
                           the
                           period                                             
                           Quarter Ended       Two Quarters       Stores open as of
                                               Ended
                           Mar       Apr       Mar       Apr      Mar        Apr 1,
                           31,       1,        31,       1,       31,
                           2013      2012      2013      2012     2013       2012
Americas:
Company-operated^(1)       25        22        52        34       7,895      7,643
Licensed stores^(1)        70        50        130       134      5,100      4,830
                           95        72        182       168      12,995     12,473
EMEA:
Company-operated^(2)       (4  )     (3  )     (24 )     5        858        877
Licensed stores^(2)        26        20        53        37       1,040      923
                           22        17        29        42       1,898      1,800
CAP:
Company-operated           66        28        113       63       779        575
Licensed stores            81        55        159       141      2,787      2,475
                           147       83        272       204      3,566      3,050
All Other Segments:
Company-operated           306       3         309       2        323        16
Licensed stores            20        1         10        1        86         81
                           326       4         319       3        409        97
                                                                              
Total                      590       176       802       417      18,868     17,420
                                                                              

^(1) Americas store data has been adjusted to exclude Seattle's Best Coffee,
Evolution Fresh and Tazo Retail, which are now reported within All Other
Segments.

^(2) EMEA store data has been adjusted for the transfer of certain
company-operated stores to licensees in the fourth quarter of fiscal 2012.

© 2013 Starbucks Coffee Company. All rights reserved.

Contact:

Starbucks Corporation
Investor Relations:
JoAnn DeGrande / Greg Smith, 206-318-7118
investorrelations@starbucks.com
or
Media:
Jim Olson, 206-318-7100
press@starbucks.com
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