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