Starbucks Reports Record Q2 Results and Reaffirms FY14 Growth Targets

  Starbucks Reports Record Q2 Results and Reaffirms FY14 Growth Targets

       6% global comp growth drives record Q2 revenues of $3.9 billion

 Strong comp growth in the U.S. and continued comp acceleration in China and
                                     EMEA

               Robust 10% revenue growth in Channel Development

   Operating income increases 18%; Operating margin expands in all segments

EPS increases to a Q2 record $0.56, up 17% excluding non-routine gain in prior
                                     year

Business Wire

SEATTLE -- April 24, 2014

Starbucks Corporation (NASDAQ:SBUX) today reported financial results for its
13-week fiscal second quarter and 26-week fiscal year to date ended March30,
2014.

Q2 Fiscal 2014 Highlights:

  *Global comparable store sales increased 6%

       *Americas and U.S. comp growth of 6%
       *EMEA comp growth of 6%, representing the highest growth in EMEA in 14
         quarters
       *China/Asia Pacific comp growth of 7%, driven by strong traffic

  *Consolidated net revenues increased 9% to a Q2 record $3.9 billion
  *Channel Development revenues grew 10%
  *Consolidated operating income increased 18%, or $100 million, to a Q2
    record $644 million
  *All reportable segments contributed to an operating margin increase of 130
    basis points to a Q2 record 16.6%
  *Earnings per share grew to $0.56, up 17% excluding a $0.03 non-routine
    gain in the prior year Q2 related to the sale of the company's equity in
    its Mexico joint venture
  *The company opened 335 net new stores globally, including the 20,000^th
    Starbucks store. Total company store count across all brands grew to
    20,519.

“Starbucks record operating performance in Q2 demonstrates that our focus on
building a different kind of company - performance driven, through the lens of
humanity - continues to drive profits and shareholder value,” said Howard
Schultz, chairman, president and ceo of Starbucks Coffee Company. “The
innovation we are bringing to market through reinvention of our Teavana
business and partnership with Oprah Winfrey, our reimagination of the
Starbucks Experience through next-generation payment and loyalty programs and
our continued investments in the over 200,000 Starbucks partners who wear the
green apron every day continues to build equity in the Starbucks brand and
strengthen our connection to customers in every market in which we operate.”

“Starbucks strong second quarter performance demonstrates the success of our
ongoing efforts to drive industry-leading growth,” said Scott Maw, Starbucks
cfo. “While global comparable store sales growth of 6% was impressive, and
squarely in line with our targets, even more significant is the fact that we
delivered strong, and balanced, revenue and profit growth across all of our
reportable segments.The strong momentum we have created in the first half of
the year, combined with our robust pipeline of innovation, give us confidence
in our ability to meet our fiscal 2014 growth targets.”

Second Quarter Fiscal 2014
Summary
                           
                           Quarter Ended Mar 30, 2014
Comparable Store Sales^(1) Sales Growth     Change in           Change in
                                             Transactions         Ticket
Consolidated               6%               3%                  3%
Americas                   6%                2%                   3%
EMEA                       6%                5%                   1%
CAP                        7%               7%                  0%
^(1) Includes only Starbucks company-operated stores open 13 months or longer.


                                                                  
Operating Results         Quarter Ended                        
($ in millions, except    Mar 30, 2014        Mar 31, 2013        Change
per share amounts)
Net New Stores^(1)        335                 590                  (255)
Revenues^(2)              $3,873.8             $3,549.6             9%
Operating Income          $644.1               $544.1               18%
Operating Margin^(2)      16.6%                15.3%                130 bps
EPS                       $0.56               $0.51               10%
^(1) Includes 337 Teavana stores added in the second quarter of fiscal 2013.
^(2) Prior period results have been corrected to reflect an immaterial
reclassification of certain fees related to our foodservice operations; for
full revised FY12 and FY13 results, refer to http://investor.starbucks.com.


Consolidated net revenues were $3.9 billion in Q2 FY14, an increase of 9% over
Q2 FY13, driven primarily by 6% growth in global comparable store sales and
incremental revenues from 1,651 net new store openings over the past 12
months.

Consolidated operating income increased 18% to $644.1 million, compared to
$544.1 million for the same period a year ago. Operating margin expanded 130
basis points to 16.6%, primarily driven by lower commodity costs and sales
leverage.

Q2 Americas Segment Results                            
                                                      
                            Quarter Ended
($ in millions)             Mar 30, 2014  Mar 31, 2013  Change
Net New Stores              128            95             33
Revenues                    $2,808.8       $2,604.1       8%
Operating Income            $605.6         $549.7         10%
Operating Margin            21.6%         21.1%         50 bps
                                                          

Net revenues for the Americas segment were $2.8 billion in Q2 FY14, an
increase of 8% over Q2 FY13. The increase was driven by 6% growth in
comparable store sales and incremental revenues from 768 net new store
openings over the past 12 months.

Operating income of $605.6 million in Q2 FY14 increased 10% from $549.7
million for the same period a year ago. Operating margin expanded 50 basis
points to 21.6% primarily due to lower commodity costs.

Q2 EMEA Segment Results                            
                                                  
                        Quarter Ended
($ in millions)         Mar 30, 2014  Mar 31, 2013  Change
Net New Stores          32             22             10
Revenues                $309.9         $273.2         13%
Operating Income        $17.7          $5.2           240%
Operating Margin        5.7%          1.9%          380 bps
                                                      

Net revenues for the EMEA segment were $309.9 million in Q2 FY14, an increase
of 13% over Q2 FY13. The growth was primarily due to favorable foreign
currency exchange and a 6% increase in comparable store sales. Incremental
revenues from 167 net new store openings over the past 12 months also
contributed.

Operating income increased 240% to $17.7 million in Q2 FY14, from $5.2 million
in the prior year quarter. Operating margin expanded 380 basis points to 5.7%
primarily driven by sales leverage and continued cost management.

Q2 China/Asia Pacific Segment Results                            
                                                                
                                      Quarter Ended
($ in millions)                       Mar 30, 2014  Mar 31, 2013  Change
Net New Stores                        174            147            27
Revenues                              $265.3         $213.6         24%
Operating Income                      $87.0          $68.3          27%
Operating Margin                      32.8%         32.0%         80 bps
                                                                    

Net revenues for the China/Asia Pacific segment were $265.3 million in Q2
FY14, an increase of 24% over Q2 FY13. The increase was driven primarily by
incremental revenues from 699 net new store openings over the past 12 months.
A 7% increase in comparable store sales, driven by strong traffic, also
contributed to the net revenue growth.

Operating income of $87.0 million in Q2 FY14 increased 27% compared to the
same period a year ago. Operating margin increased 80 basis points to 32.8%
driven primarily by sales leverage.

Q2 Channel Development                                         
Segment Results
                                                                 
                            Quarter Ended
($ in millions)             Mar 30, 2014        Mar 31, 2013       Change
Revenues^(1)                $370.4               $338.1              10%
Operating Income            $127.3               $94.1               35%
Operating Margin^(1)        34.4%               27.8%              660 bps
^(1) Prior period results have been corrected to reflect an immaterial
reclassification of certain fees related to our foodservice operations; for
full revised FY12 and FY13 results, refer to http://investor.starbucks.com.


Net revenues for the Channel Development segment were $370.4 million in Q2
FY14, an increase of 10% over Q2 FY13, primarily driven by increased sales of
premium single serve products.

Operating income grew 35% to $127.3 million in Q2 FY14 compared to $94.1
million for the same period a year ago. Operating margin increased 660 basis
points to 34.4% in Q2 FY14 primarily due to lower coffee costs, with sales
leverage also contributing.

Q2 All Other Segments                                          
Results
                                                                 
                          Quarter Ended
($ in millions)           Mar 30, 2014         Mar 31, 2013        Change
Net New Stores^(1)        1                     326                  (325)
Revenues^(2)              $119.4                $120.6               (1)%
Operating Loss            ($7.8)               ($4.1)              90%
^(1) Includes 337 Teavana stores added in the second quarter of fiscal 2013.
^(2) Prior period results have been corrected to reflect an immaterial
reclassification of certain fees related to our foodservice operations; for
full revised FY12 and FY13 results, refer to http://investor.starbucks.com.


Net revenues for All Other Segments were $119.4 million in Q2 FY14, a decrease
of 1% compared to Q2 FY13, resulting from lower Seattle's Best Coffee revenues
mostly offset by growth in emerging businesses, including Teavana and
Evolution Fresh.

Q2 FY14 operating loss increased to $7.8 million compared to a loss of $4.1
million for the same period a year ago driven by investments to support growth
in our emerging businesses.

Year to Date Financial                                           
Results
                                                                
                         Two Quarters Ended Mar 30, 2014
Comparable Store         Sales Growth    Change in Transactions   Change in
Sales^(1)                                                           Ticket
Consolidated             6%               3%                        2%
Americas                 5%               3%                        2%
EMEA                     5%               4%                        1%
CAP                      7%              7%                       1%
^(1) Includes only Starbucks company-operated stores open 13 months or longer.


                                                                
Operating Results         Two Quarters Ended                   
($ in millions, except    Mar 30, 2014        Mar 31, 2013        Change
per share amounts)
Net New Stores^(1)        752                 802                  (50)
Revenues^(2)              $8,113.4             $7,342.7             10%
Operating Income          $1,457.7             $1,174.6             24%
Operating Margin^(2)      18.0%                16.0%                200 bps
EPS                       $1.26               $1.08               17%
^(1) Includes 337 Teavana stores added in the second quarter of fiscal 2013.
^(2) Prior period results have been corrected to reflect an immaterial
reclassification of certain fees related to our foodservice operations; for
full revised FY12 and FY13 results, refer to http://investor.starbucks.com.


Fiscal 2014 Targets

The company reaffirms and updates the following fiscal 2014 targets:

  *Revenue growth of 10% or greater
  *Global comparable store sales growth in the mid single digits
  *Consolidated operating margin improvement now targeted at 175 to 200 basis
    points over FY13:

       *Americas: moderate improvement over FY13
       *EMEA: operating margin improving toward the high single digits
       *CAP: operating margin percentage moving toward the low 30's
       *Channel Development: now targeting approximately 500 basis point
         improvement over FY13

  *Consolidated tax rate of approximately 34%
  *Earnings per share now expected to be in the range of $2.62 to $2.68:

       *Q3 EPS in the range of $0.64 to $0.66
       *Q4 EPS in the range of $0.71 to $0.75

  *Approximately 1,500 net new stores:

       *Americas: approximately 600
       *EMEA: approximately 150
       *CAP: approximately 750

  *Capital expenditures of approximately $1.2 billion

Company Updates

  *In January, Starbucks implemented a new senior leadership structure to
    bolster its Financial and Operating organization globally. Ceo Howard
    Schultz expanded his focus on innovation and next generation retailing and
    payments initiatives; cfo Troy Alstead was promoted to chief operating
    officer; svp of Corporate Finance Scott Maw was promoted to executive vice
    president and cfo; Craig Russell was promoted to executive vice president,
    Global Coffee.
  *Starbucks held its 2014 Annual Meeting of Shareholders in March, where
    Oprah Winfrey and Starbucks announced a unique collaboration to co-create
    Teavana® Oprah Chai Tea. Beginning April 29, Teavana Oprah Chai will be
    sold in participating Starbucks and Teavana stores across the U.S. and
    Canada, with Starbucks making a donation for each product sold to the
    Oprah Winfrey Leadership Academy Foundation to benefit educational
    opportunities for youth.
  *In March, Starbucks introduced an enhanced mobile app which includes
    digital tipping, digital receipts and a streamlined user experience.
  *The company opened its first store in Brunei and now operates in 64
    countries worldwide. It also opened its first store in Downtown Disney,
    offering a unique experience to millions of guests at Disneyland Resort.
  *The company repurchased 3.5 million shares of common stock in Q2 FY14;
    approximately 22 million shares remain available for purchase under
    previous authorizations.
  *The Board of Directors declared a cash dividend of $0.26 per share,
    payable on May 23, 2014 to shareholders of record as of May 8, 2014.

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, coo, and Scott Maw, cfo. The call will be webcast and can be accessed
at http://investor.starbucks.com. A replay of the webcast will be available
through approximately 9:00 p.m. Pacific Time on Thursday, May 22, 2014.

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 September29, 2013 for
additional information.

About Starbucks

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

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, operations and brand, business momentum, our ability to meet
our targets, the benefits to our business from the shift to online shopping,
our ability to leverage our assets, including our brand, and our mobile,
social and digital technologies, growth and growth opportunities, including in
our tea and Channel Development businesses, earnings per share, revenues,
operating margins, profits, capital expenditures, tax rates, 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 September29, 2013. 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 30,           Mar 31,        %         Mar 30,   Mar 31,
                  2014             2013                    2014     2013
                                                   Change
                                                           As a % of total
                                                             net revenues ^(1)
Net revenues:                                                        
Company-operated  $  3,068.0        $  2,807.7     9.3   %   79.2  %   79.1  %
stores
Licensed stores   356.2             322.1          10.6      9.2       9.1
CPG, foodservice  449.6            419.8         7.1       11.6     11.8  
and other^(1)
Total net         3,873.8           3,549.6        9.1       100.0     100.0
revenues
Cost of sales
including         1,629.2           1,530.4        6.5       42.1      43.1
occupancy costs
Store operating   1,134.5           1,038.4        9.3       29.3      29.3
expenses
Other operating   110.9             105.8          4.8       2.9       3.0
expenses^(1)
Depreciation and
amortization      174.4             153.1          13.9      4.5       4.3
expenses
General and
administrative    240.6            230.3         4.5       6.2      6.5   
expenses
Total operating   3,289.6           3,058.0        7.6       84.9      86.2
expenses
Income from       59.9             52.5          14.1      1.5      1.5   
equity investees
Operating income  644.1             544.1          18.4      16.6      15.3
Interest income   17.8              50.8           (65.0 )   0.5       1.4
and other, net
Interest expense  (16.7       )     (6.1       )   173.8     (0.4  )   (0.2  )
Earnings before   645.2             588.8          9.6       16.7      16.6
income taxes
Income taxes      218.3            198.1         10.2      5.6      5.6   
Net earnings
including         426.9             390.7          9.3       11.0      11.0
noncontrolling
interests
Net earnings
attributable to   (0.1        )     0.3           nm        —        —     
noncontrolling
interests
Net earnings
attributable to   $  427.0         $  390.4      9.4   %   11.0  %   11.0  %
Starbucks
                                                                             
Net earnings per
common share -    $  0.56          $  0.51       9.8   %
diluted
Weighted avg.
shares            764.6             761.3
outstanding -
diluted
                                                                             
Cash dividends
declared per      $  0.26           $  0.21
share
                                                                             
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                37.0  %   37.0  %
company-operated
stores revenue
Effective tax
rate including                                               33.8  %   33.6  %
noncontrolling
interests
                                                                             
^(1) Prior period results have been corrected to reflect an immaterial
reclassification of certain fees related to our foodservice operations; for
full revised FY12 and FY13 results, refer to http://investor.starbucks.com.


                                                           
                  Two Quarters Ended                         Two Quarters
                                                             Ended
                  Mar 30,           Mar 31,       %          Mar 30,   Mar 31,
                  2014             2013                    2014     2013
                                                  Change
                                                           As a % of total
                                                             net revenues ^(1)
Net revenues:                                                        
Company-operated  $  6,411.8        $ 5,797.3     10.6   %   79.0  %   79.0  %
stores
Licensed stores   758.0             672.2         12.8       9.3       9.2
CPG, foodservice  943.6            873.2        8.1        11.6     11.9  
and other^(1)
Total net         8,113.4           7,342.7       10.5       100.0     100.0
revenues
Cost of sales
including         3,424.2           3,151.1       8.7        42.2      42.9
occupancy costs
Store operating   2,309.6           2,127.9       8.5        28.5      29.0
expenses
Other operating   225.8             231.9         (2.6   )   2.8       3.2
expenses^(1)
Depreciation and
amortization      344.1             302.0         13.9       4.2       4.1
expenses
General and
administrative    483.2             462.2         4.5        6.0       6.3
expenses
Litigation        (20.2       )     —            nm         (0.2  )   —     
charge/(credit)
Total operating   6,766.7           6,275.1       7.8        83.4      85.5
expenses
Income from       111.0            107.0        3.7        1.4      1.5   
equity investees
Operating income  1,457.7           1,174.6       24.1       18.0      16.0
Interest income   37.6              48.0          (21.7  )   0.5       0.7
and other, net
Interest expense  (31.3       )     (12.7     )   146.5      (0.4  )   (0.2  )
Earnings before   1,464.0           1,209.9       21.0       18.0      16.5
income taxes
Income taxes      496.4            386.8        28.3       6.1      5.3   
Net earnings
including         967.6             823.1         17.6       11.9      11.2
noncontrolling
interests
Net earnings
attributable to   —                0.6          (100.0 )   —        —     
noncontrolling
interests
Net earnings
attributable to   $  967.6         $ 822.5      17.6   %   11.9  %   11.2  %
Starbucks
                                                                             
Net earnings per
common share -    $  1.26          $ 1.08       16.7   %
diluted
Weighted avg.
shares            765.4             761.3
outstanding -
diluted
                                                                             
Cash dividends
declared per      $  0.52           $ 0.42
share
                                                                             
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                36.0  %   36.7  %
company-operated
stores revenue
Effective tax
rate including                                               33.9  %   32.0  %
noncontrolling
interests
                                                                             
^(1) Prior period results have been corrected to reflect an immaterial
reclassification of certain fees related to our foodservice operations; for
full revised FY12 and FY13 results, refer to http://investor.starbucks.com.


                                                                  
Segment Results
(in millions)
                                                                            
Americas
                                                                  
                   Mar 30,         Mar 31,         %            Mar 30,     Mar 31,
                   2014           2013                        2014       2013
                                                 Change                 
                                                                As a % of Americas
Quarter Ended                                                   total net revenues
Net revenues:
Company-operated   $ 2,561.3       $ 2,376.2       7.8    %     91.2  %     91.2  %
stores
Licensed stores    237.8           216.7           9.7          8.5         8.3
CPG, foodservice   9.7            11.2           (13.4  )     0.3        0.4   
and other
Total net          2,808.8         2,604.1         7.9          100.0       100.0
revenues
Cost of sales
including          1,059.6         1,000.0         6.0          37.7        38.4
occupancy costs
Store operating    963.9           891.9           8.1          34.3        34.2
expenses
Other operating    23.7            21.2            11.8         0.8         0.8
expenses
Depreciation and
amortization       114.8           105.6           8.7          4.1         4.1
expenses
General and
administrative     41.2           38.1           8.1          1.5        1.5   
expenses
Total operating    2,203.2         2,056.8         7.1          78.4        79.0
expenses
Income from        —              2.4            (100.0 )     —          0.1   
equity investees
Operating income   $ 605.6        $ 549.7        10.2   %     21.6  %     21.1  %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                   37.6  %     37.5  %
company-operated
stores revenue
                                                                                  
Two Quarters
Ended
Net revenues:
Company-operated   $ 5,348.2       $ 4,962.6       7.8    %     90.9  %     91.1  %
stores
Licensed stores    512.1           455.8           12.4         8.7         8.4
CPG, foodservice   21.4           26.3           (18.6  )     0.4        0.5   
and other
Total net          5,881.7         5,444.7         8.0          100.0       100.0
revenues
Cost of sales
including          2,223.8         2,092.5         6.3          37.8        38.4
occupancy costs
Store operating    1,963.5         1,851.7         6.0          33.4        34.0
expenses
Other operating    49.0            51.2            (4.3   )     0.8         0.9
expenses
Depreciation and
amortization       227.1           211.0           7.6          3.9         3.9
expenses
General and
administrative     80.7           100.9          (20.0  )     1.4        1.9   
expenses
Total operating    4,544.1         4,307.3         5.5          77.3        79.1
expenses
Income from        —              2.4            (100.0 )     —          —     
equity investees
Operating income   $ 1,337.6      $ 1,139.8      17.4   %     22.7  %     20.9  %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                                   36.7  %     37.3  %
company-operated
stores revenue
                                                                                  

                                                             
EMEA
                                                             
                   Mar 30,       Mar 31,       %           Mar 30,     Mar 31,
                   2014         2013                     2014       2013
                                             Change                
                                                           As a % of EMEA
Quarter Ended                                              total net revenues
Net revenues:
Company-operated   $ 245.5       $ 219.0       12.1  %     79.2  %     80.2  %
stores
Licensed stores    54.4          45.9          18.5        17.6        16.8
CPG, foodservice   10.0         8.3          20.5        3.2        3.0   
and other
Total net          309.9         273.2         13.4        100.0       100.0
revenues
Cost of sales
including          158.3         140.8         12.4        51.1        51.5
occupancy costs
Store operating    92.4          83.2          11.1        29.8        30.5
expenses
Other operating    11.8          10.7          10.3        3.8         3.9
expenses
Depreciation and
amortization       14.8          13.7          8.0         4.8         5.0
expenses
General and
administrative     16.0         19.6         (18.4 )     5.2        7.2   
expenses
Total operating    293.3         268.0         9.4         94.6        98.1
expenses
Income from        1.1          —            nm          0.4        —     
equity investees
Operating income   $ 17.7       $ 5.2        240.4 %     5.7   %     1.9   %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                              37.6  %     38.0  %
company-operated
stores revenue
                                                                             
Two Quarters
Ended
Net revenues:
Company-operated   $ 514.5       $ 471.7       9.1   %     79.2  %     81.4  %
stores
Licensed stores    115.0         89.8          28.1        17.7        15.5
CPG, foodservice   20.0         17.8         12.4        3.1        3.1   
and other
Total net          649.5         579.3         12.1        100.0       100.0
revenues
Cost of sales
including          326.5         293.3         11.3        50.3        50.6
occupancy costs
Store operating    188.8         173.5         8.8         29.1        29.9
expenses
Other operating    23.4          19.1          22.5        3.6         3.3
expenses
Depreciation and
amortization       29.4          27.9          5.4         4.5         4.8
expenses
General and
administrative     32.1         38.0         (15.5 )     4.9        6.6   
expenses
Total operating    600.2         551.8         8.8         92.4        95.3
expenses
Income from        1.9          —            nm          0.3        —     
equity investees
Operating income   $ 51.2       $ 27.5       86.2  %     7.9   %     4.7   %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                              36.7  %     36.8  %
company-operated
stores revenue
                                                                             

                                                             
China / Asia
Pacific (CAP)
                                                             
                    Mar 30,       Mar 31,       %          Mar 30,     Mar 31,
                    2014         2013                    2014       2013
                                              Change               
                                                           As a % of CAP
Quarter Ended                                              total net revenues
Net revenues:
Company-operated    $ 202.5       $ 156.5       29.4 %     76.3  %     73.3  %
stores
Licensed stores     62.8         57.1         10.0       23.7       26.7  
Total net           265.3         213.6         24.2       100.0       100.0
revenues
Cost of sales
including           127.4         104.9         21.4       48.0        49.1
occupancy costs
Store operating     52.4          40.3          30.0       19.8        18.9
expenses
Other operating     11.1          11.5          (3.5 )     4.2         5.4
expenses
Depreciation and
amortization        11.8          8.5           38.8       4.4         4.0
expenses
General and
administrative      13.0         10.9         19.3       4.9        5.1   
expenses
Total operating     215.7         176.1         22.5       81.3        82.4
expenses
Income from         37.4         30.8         21.4       14.1       14.4  
equity investees
Operating income    $ 87.0       $ 68.3       27.4 %     32.8  %     32.0  %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                              25.9  %     25.8  %
company-operated
stores revenue
                                                                             
Two Quarters
Ended
Net revenues:
Company-operated    $ 404.1       $ 307.0       31.6 %     75.9  %     71.8  %
stores
Licensed stores     128.1        120.7        6.1        24.1       28.2  
Total net           532.2         427.7         24.4       100.0       100.0
revenues
Cost of sales
including           260.2         211.4         23.1       48.9        49.4
occupancy costs
Store operating     103.7         79.7          30.1       19.5        18.6
expenses
Other operating     21.7          21.7          —          4.1         5.1
expenses
Depreciation and
amortization        22.0          15.9          38.4       4.1         3.7
expenses
General and
administrative      27.1         23.5         15.3       5.1        5.5   
expenses
Total operating     434.7         352.2         23.4       81.7        82.3
expenses
Income from         70.5         64.9         8.6        13.2       15.2  
equity investees
Operating income    $ 168.0      $ 140.4      19.7 %     31.6  %     32.8  %
Supplemental
Ratios:
Store operating
expenses as a
percentage of                                              25.7  %     26.0  %
company-operated
stores revenue
                                                                             

                                                                  
Channel
Development
                                                                
                 Mar 30,         Mar 31,         %           Mar 30,   Mar 31,
                 2014           2013                       2014     2013
                                                 Change
                                                             As a % of
                                                             Channel
                                                             Development
Quarter Ended                                                total net
                                                             revenues ^(1)
Net revenues:
CPG              $  282.1        $  254.6        10.8   %    76.2  %   75.3  %
Foodservice^(1)  88.3           83.5           5.7         23.8     24.7  
Total net        370.4           338.1           9.6         100.0     100.0
revenues
Cost of sales    213.6           212.6           0.5         57.7      62.9
Other operating  46.6            43.9            6.2         12.6      13.0
expenses^(1)
Depreciation and
amortization     0.4             0.3             33.3        0.1       0.1
expenses
General and
administrative   3.9            6.5            (40.0  )    1.1      1.9   
expenses
Total operating  264.5           263.3           0.5         71.4      77.9
expenses
Income from      21.4           19.3           10.9        5.8      5.7   
equity investees
Operating income $  127.3       $  94.1        35.3   %    34.4  %   27.8  %
                                                                             
Two Quarters
Ended
Net revenues:
CPG              $  588.5        $  542.9        8.4    %    76.3  %   76.2  %
Foodservice^(1)  183.0          169.6          7.9         23.7     23.8  
Total net        771.5           712.5           8.3         100.0     100.0
revenues
Cost of sales    459.2           447.8           2.5         59.5      62.8
Other operating  94.6            101.5           (6.8   )    12.3      14.2
expenses^(1)
Depreciation and
amortization     0.8             0.6             33.3        0.1       0.1
expenses
General and
administrative   9.3            11.3           (17.7  )    1.2      1.6   
expenses
Total operating  563.9           561.2           0.5         73.1      78.8
expenses
Income from      38.6           39.7           (2.8   )    5.0      5.6   
equity investees
Operating income $  246.2       $  191.0       28.9   %    31.9  %   26.8  %
                                                                             
^(1) Prior period results have been corrected to reflect an immaterial
reclassification of certain fees related to our foodservice operations; for
full revised FY12 and FY13 results, refer to http://investor.starbucks.com.
                                                                             

                                                              
All Other Segments
                                                               
                            Mar 30,             Mar 31,            %
                            2014               2013           
                                                                   Change
Quarter Ended
Net revenues:
Company-operated stores     $   58.7            $   56.0           4.8     %
Licensed stores             1.2                 2.4                (50.0   )
CPG, foodservice and        59.5               62.2              (4.3    )
other^(1)
Total net revenues          119.4               120.6              (1.0    )
Cost of sales including     68.8                69.7               (1.3    )
occupancy costs
Store operating expenses    25.8                23.0               12.2
Other operating             18.0                18.5               (2.7    )
expenses^(1)
Depreciation and            3.7                 3.4                8.8
amortization expenses
General and administrative  10.9               10.1              7.9
expenses
Total operating expenses    127.2              124.7             2.0
Operating loss              $   (7.8    )       $   (4.1   )       90.2    %
                                                                           
Two Quarters Ended
Net revenues:
Company-operated stores     $   145.0           $   56.0           158.9   %
Licensed stores             2.8                 5.9                (52.5   )
CPG, foodservice and        130.7              116.6             12.1
other^(1)
Total net revenues          278.5               178.5              56.0
Cost of sales including     151.3               106.0              42.7
occupancy costs
Store operating expenses    53.6                23.0               133.0
Other operating             37.6                38.4               (2.1    )
expenses^(1)
Depreciation and            7.3                 4.3                69.8
amortization expenses
General and administrative  22.6               15.0              50.7
expenses
Total operating expenses    272.4              186.7             45.9
Operating income/(loss)     $   6.1            $   (8.2   )       nm
                                                                   
^(1) Prior period results have been corrected to reflect an immaterial
reclassification of certain fees related to our foodservice operations; for
full revised FY12 and FY13 results, refer to http://investor.starbucks.com.
                                                                   

                           Supplemental Information

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

Fiscal Second Quarter 2014 U.S.                                     
Supplemental Data
                                                                    
                                  Quarter Ended
($ in millions)                   Mar 30, 2014    Mar 31, 2013    Change
Revenues                          $2,520.4        $2,312.9           9%
Comparable Store Sales Growth^(1) 6%                 7%
Change in Transactions            2%                 5%
Change in Ticket                  3%              2%              
^(1) Includes only Starbucks company-operated stores open 13 months or longer


                                                                     
Store Data:
                                                                        
                  Net stores opened (closed) during the              
                  period
                  Quarter Ended        Two Quarters Ended   Stores open as of
                  Mar 30,   Mar 31,    Mar 30,   Mar 31,   Mar 30,    Mar
                                                                        31,
                  2014       2013       2014       2013      2014       2013
Americas
Company-operated  59         24         86         50        8,164      7,852
stores
Licensed stores   69        71        184       132      5,599     5,143
                  128       95        270       182      13,763    12,995
EMEA^(1)
Company-operated  1          (4   )     4          (24  )    842        843
stores
Licensed stores   31        26        92        53       1,223     1,055
                  32        22        96        29       2,065     1,898
CAP
Company-operated  53         66         114        113       1,020      779
stores
Licensed stores   121       81        269       159      3,245     2,787
                  174       147       383       272      4,265     3,566
All Other
Segments^(2)
Company-operated  4          306        11         309       368        323
stores
Licensed stores   (3   )     20        (8   )     10       58        86
                  1         326       3         319      426       409
                                                              
Total Company     335       590       752       802      20,519    18,868
                                                                        
^(1) EMEA store data has been adjusted for the transfer of certain
company-operated stores to licensed stores in the second quarter of fiscal
2014.
^(2) Includes 337 Teavana stores added in the second quarter of fiscal 2013.

Contact:

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