Starbucks Revenues Increase 11%; Earnings Per Share Surge 22% to a Q3 Record $0.67

  Starbucks Revenues Increase 11%; Earnings Per Share Surge 22% to a Q3 Record   $0.67    Strong comp store sales increases of 6% globally and 7% in the U.S. drive                       record Q3 revenues of $4.2 billion                    Channel Development revenues increase 13%            Consolidated operating margin expands to a Q3 record 18.5%     Company reiterates strong growth outlook; introduces initial FY15 growth                                    targets  Business Wire  SEATTLE -- July 24, 2014  Starbucks Corporation (NASDAQ:SBUX) today reported financial results for its 13-week fiscal third quarter and 39-week fiscal year to date ended June29, 2014.  Q3 Fiscal 2014 Highlights:    *Consolidated net revenue growth accelerated to 11%; net revenues totaled a     Q3 record $4.2 billion   *Global comparable store sales increased 6%, marking the 18th consecutive     quarter of global comp growth of 5% or greater         *Americas comp sales increased 6%; U.S. comp sales increased 7%        *EMEA comp sales increased 3%        *China/Asia Pacific comp sales increased 7%    *Consolidated operating income increased 25%, to a Q3 record $769 million   *Consolidated operating margin expanded 200 bps, to a Q3 record 18.5%,     primarily driven by sales leverage   *Channel Development revenues increased 13%; operating margin expanded 800     bps to 37.1%   *Earnings per share increased 22% to a Q3 record $0.67 per share   *The Company opened 344 net new stores globally, ending the quarter with     20,863 stores across 64 countries  Updated Fiscal 2014 Targets  Following the strong performance year-to-date, the company is updating the following fiscal 2014 targets:    *Consolidated operating margin improvement now targeted at 200 bps over     FY13, when excluding the Kraft litigation charge in fiscal 2013         *Channel Development now targeting approximately 600 bps improvement          over FY13    *Earnings per share now expected to be in the range of $2.70 to $2.72; or     $2.65 to $2.67 when excluding an estimated net benefit of $0.05 for     certain FY14 non-GAAP adjustments. Please refer to the GAAP to non-GAAP     reconciliation at the end of this release:         *Q4 EPS now in the range of $0.76 to $0.78; or $0.73 to $0.75 when          excluding a $0.03 estimated net benefit as described in the above          referenced reconciliation    *Net new stores now expected to be approximately 1,550         *Americas: increased from 600 to 650  Fiscal 2015 Targets  The company introduces initial fiscal 2015 targets as follows:    *Revenue growth of 10% or greater   *Global comparable store sales growth in the mid single digits   *An additional 1,600 net new stores globally   *Earnings per share growth of 15%-20% over FY14 calculated based on     Non-GAAP earnings per share  “Starbucks Q3 represents another quarter of outstanding operating performance in which each of our segments contributed to record results,” said Howard Schultz, chairman, president and ceo of Starbucks Coffee Company. “The increasing power of the Starbucks brand, the success of our best-in-class mobile, social and digital technologies and our greatest asset - over 300,000 partners who deliver the Starbucks Experience to over 70 million customers around the world each week - position us to continue growing our business around the world and into the future.”  “Starbucks record Q3 results demonstrate both the power of our innovation and the opportunities for growth, globally and in the U.S., that lie ahead. Importantly, record revenues and operating margin reflect an acceleration of top-line growth and meaningful contributions from all operating regions and our Channel Development segment,” said Scott Maw, Starbucks cfo. “Our Q3 results give us confidence in our ability to deliver on our full year fiscal 2014 targets and support the strong 2015 revenue and profit growth targets we introduced today, despite continued challenging economic and consumer headwinds in many of the global markets in which we operate.”  Third Quarter Fiscal 2014 Summary                                                  Quarter Ended Jun 29, 2014 Comparable Store        Sales Growth      Change in            Change in Sales^(1)                                   Transactions           Ticket Consolidated            6%                2%                   4% Americas                6%                  2%                     4% EMEA                    3%                  2%                     2% CAP                     7%                6%                   1% ^(1) Includes only Starbucks company-operated stores open 13 months or longer.                                                                     Operating Results              Quarter Ended                      ($ in millions, except        Jun 29, 2014      Jun 30, 2013      Change per share amounts) Net New Stores                 344               341                3 Revenues^(1)                   $4,153.7           $3,735.3           11% Operating Income               $768.5             $615.2             25% Operating Margin^(1)           18.5%              16.5%              200 bps EPS                           $0.67             $0.55             22% ^(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.  Consolidated net revenues were $4.2 billion in Q3 FY14, an increase of 11% over Q3 FY13, driven primarily by 6% growth in global comparable store sales and incremental revenues from 1,654 net new store openings over the past 12 months.  Consolidated operating income increased 25% to $768.5 million, compared to $615.2 million for the same period a year ago. Operating margin expanded 200 basis points to 18.5%, primarily driven by sales leverage and lower commodity costs.  Q3 Americas Segment Results                                                                                                                                                                                                   Quarter Ended ($ in millions)             Jun 29, 2014     Jun 30, 2013     Change Net New Stores              149                  158                  (9) Revenues                    $3,057.7             $2,776.5             10% Operating Income            $728.5               $619.3               18% Operating Margin            23.8%            22.3%            150 bps                                                                         Net revenues for the Americas segment were $3.1 billion in Q3 FY14, an increase of 10% over Q3 FY13. The increase was driven by 6% growth in comparable store sales and incremental revenues from 759 net new store openings over the past 12 months.  Operating income of $728.5 million in Q3 FY14 increased 18% from $619.3 million for the same period a year ago. Operating margin expanded 150 basis points to 23.8%, primarily due to sales leverage.  Q3 EMEA Segment Results                                                                                                                                                                                       Quarter Ended ($ in millions)         Jun 29, 2014     Jun 30, 2013     Change Net New Stores          37                   43                   (6) Revenues                $323.5               $287.2               13% Operating Income        $29.2                $9.3                 214% Operating Margin        9.0%             3.2%             580 bps                                                                     Net revenues for the EMEA segment were $323.5 million in Q3 FY14, an increase of 13% over Q3 FY13. The growth was primarily due to favorable foreign currency exchange and a 3% increase in comparable store sales. Incremental revenues from 161 net new store openings over the past 12 months also contributed.  Operating income increased 214% to $29.2 million in Q3 FY14, from $9.3 million in the prior year quarter. Operating margin expanded 580 basis points to 9.0%, primarily driven by sales leverage and continued cost management.  Q3 China/Asia Pacific                                        Segment Results                                                                                                                                                              Quarter Ended ($ in millions)            Jun 29, 2014     Jun 30, 2013     Change Net New Stores             160                  119                  41 Revenues                   $287.6               $233.7               23% Operating Income           $100.8               $84.7                19% Operating Margin           35.0%            36.2%            (120) bps                                                                        Net revenues for the China/Asia Pacific segment were $287.6 million in Q3 FY14, an increase of 23% over Q3 FY13. The increase was primarily driven by incremental revenues from 740 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 $100.8 million in Q3 FY14 increased 19% compared to the same period a year ago. Operating margin declined 120 basis points to 35.0%, driven by the portfolio shift to more company-operated stores and unfavorable foreign currency exchange, partially offset by sales leverage.  Q3 Channel Development                                        Segment Results                                                                                                                                                                        Quarter Ended ($ in millions)                 Jun 29, 2014       Jun 30,       Change                                                      2013 Revenues^(1)                     $375.3              $331.0         13% Operating Income                 $139.3              $96.3          45% Operating Margin^(1)            37.1%              29.1%         800 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 $375.3 million in Q3 FY14, an increase of 13% over Q3 FY13, primarily driven by increased sales of premium single serve products and higher sales volumes of packaged coffee in the U.S.  Operating income grew 45% to $139.3 million in Q3 FY14 compared to $96.3 million for the same period a year ago. Operating margin increased 800 basis points to 37.1% in Q3 FY14, primarily due to lower coffee costs and improved inventory management compared to the prior year.  Q3 All Other Segments                                         Results                                                                                                                                                                      Quarter Ended ($ in millions)             Jun 29, 2014          Jun 30,         Change                                                     2013 Net New Stores               (2)                    21               (23) Revenues^(1)                 $109.6                 $106.9           3% Operating Loss              ($18.9)               ($9.4)          101% ^(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 All Other Segments were $109.6 million in Q3 FY14, an increase of 3% compared to Q3 FY13, primarily driven by increased sales in our emerging businesses.  Q3 FY14 operating loss increased to $18.9 million compared to a loss of $9.4 million for the same period a year ago, driven by investments to support growth in our emerging businesses.  Year to Date Financial                                         Results                                                                                                                                                               Three Quarters Ended Jun 29, 2014 Comparable Store          Sales Growth      Change in           Change in Sales^(1)                                     Transactions          Ticket Consolidated              6%                  3%                    3% Americas                  6%                  3%                    3% EMEA                      5%                  3%                    1% CAP                       7%                6%                  1% ^(1) Includes only Starbucks company-operated stores open 13 months or longer.                                                                   Operating Results              Three Quarters Ended               ($ in millions, except        Jun 29, 2014      Jun 30, 2013      Change per share amounts) Net New Stores^(1)             1,096             1,143              (47) Revenues^(2)                   $12,267.1          $11,078.1          11% Operating Income               $2,226.3           $1,789.9           24% Operating Margin^(2)           18.1%              16.2%              190 bps EPS                           $1.94             $1.63             19% ^(1) Net new stores for the three quarters ended June 30, 2013 includes 337 Teavana stores acquired 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.  Company Updates    *In June, Starbucks introduced new Fizzio^TM handcrafted sodas and Teavana®     Shaken Iced Teas in the U.S. to further extend its Refreshment offerings.     The Fizzio^TM soda machine is a breakthrough in carbonation technology     with the ability to deliver an unmatched soda experience. Fizzio^TM sodas     are available in over one third of U.S. company-operated retail stores.   *Starbucks opened its first company-operated Starbucks® store at Walt     Disney World Resort. It also recently opened its first store in Bogota,     Colombia and its first store in Hanoi, Vietnam. The company expanded the     Teavana® Teabar concept to Los Angeles and opened the second Teabar in New     York; now operating five Teavana® Fine Teas + Teabars in the U.S.   *Starbucks and Duracell Powermat announced that they have begun a national     rollout of Powermat wireless charging, beginning with stores in the San     Francisco Bay Area, with expansion to additional major markets in 2015.   *Starbucks, in partnership with Arizona State University, launched the     Starbucks College Achievement Plan, empowering thousands of U.S. partners     (employees) to complete a bachelor's degree with Starbucks offering full     tuition reimbursement for their junior and senior years for eligible     partners.   *Starbucks hosted its third Partner Family Forum in China, gathering more     than 1,200 Starbucks South China partners together in Guangzhou. This was     followed by the first-ever Partner Family Forums held in the U.S.   *The Company's unsecured debt rating was upgraded to A3 with a stable     outlook by Moody's Investors Service. The upgrade affects the company’s     nearly $2.1 billion senior unsecured bonds. Moody’s also affirmed the     company’s short-term commercial paper rating at P-2. Starbucks had held a     Baa1 rating with a stable outlook since November 25, 2013.   *The Company repurchased 4.2 million shares of common stock in Q3 FY14;     approximately 18 million shares remain available for purchase under     current authorizations.   *The Board of Directors declared a cash dividend of $0.26 per share,     payable on August 22, 2014 to shareholders of record as of August 7, 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, August 21, 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, our innovation, our ability to meet our targets, our ability to leverage our assets, including our brand, and our mobile, social and digital technologies, growth and growth opportunities and related investments, earnings per share, revenues, operating margins, profits, capital expenditures, comparable store sales and net new stores. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results may differ materially depending on a variety of factors including, but not limited to, 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                    Jun 29,      Jun 30,       %           Jun 29,  Jun 30,                    2014          2013           Change      2014      2013                                                            As a % of total                                                              net revenues ^(1) Net revenues:                                                         Company-operated   $ 3,290.5     $ 2,986.3       10.2  %     79.2  %   79.9  % stores Licensed stores    408.1         342.0           19.3        9.8       9.2 CPG, foodservice   455.1        407.0          11.8        11.0     10.9   and other^(1) Total net          4,153.7       3,735.3         11.2        100.0     100.0 revenues Cost of sales including          1,711.5       1,597.6         7.1         41.2      42.8 occupancy costs Store operating    1,176.5       1,084.1         8.5         28.3      29.0 expenses Other operating    120.6         98.9            21.9        2.9       2.6 expenses^(1) Depreciation and amortization       180.1         153.3           17.5        4.3       4.1 expenses General and administrative     269.4        249.6          7.9         6.5      6.7    expenses Total operating    3,458.1       3,183.5         8.6         83.3      85.2 expenses Income from        72.9         63.4           15.0        1.8      1.7    equity investees Operating income   768.5         615.2           24.9        18.5      16.5 Interest income    19.4          3.5             454.3       0.5       0.1 and other, net Interest expense   (16.4     )   (6.3      )     160.3       (0.4  )   (0.2  ) Earnings before    771.5         612.4           26.0        18.6      16.4 income taxes Income taxes       259.0        194.6          33.1        6.2      5.2    Net earnings including          512.5         417.8           22.7        12.3      11.2 noncontrolling interests Net earnings attributable to    (0.1      )   —              nm          —        —      noncontrolling interests Net earnings attributable to    $ 512.6      $ 417.8        22.7  %     12.3  %   11.2  % Starbucks                                                                               Net earnings per common share -     $ 0.67       $ 0.55         21.8  % diluted Weighted avg. shares             761.0         761.9 outstanding - diluted                                                                               Cash dividends declared per       $ 0.26        $ 0.21 share                                                                               Supplemental Ratios: Store operating expenses as a percentage of                                                35.8  %   36.3  % company-operated store revenues Effective tax rate including                                               33.6  %   31.8  % 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.                                                                                                                                                             Three Quarters Ended                      Three Quarters                                                              Ended                    Jun 29,      Jun 30,       %           Jun 29,  Jun 30,                    2014          2013           Change      2014      2013                                                            As a % of total                                                              net revenues ^(1) Net revenues:                                                         Company-operated   $ 9,702.3     $ 8,783.7       10.5  %     79.1  %   79.3  % stores Licensed stores    1,166.1       1,014.2         15.0        9.5       9.2 CPG, foodservice   1,398.7      1,280.2        9.3         11.4     11.6   and other^(1) Total net          12,267.1      11,078.1        10.7        100.0     100.0 revenues Cost of sales including          5,135.7       4,748.6         8.2         41.9      42.9 occupancy costs Store operating    3,486.1       3,212.2         8.5         28.4      29.0 expenses Other operating    346.3         330.8           4.7         2.8       3.0 expenses^(1) Depreciation and amortization       524.2         455.3           15.1        4.3       4.1 expenses General and administrative     752.6         711.7           5.7         6.1       6.4 expenses Litigation         (20.2     )   —              nm          (0.2  )   —      charge/(credit) Total operating    10,224.7      9,458.6         8.1         83.4      85.4 expenses Income from        183.9        170.4          7.9         1.5      1.5    equity investees Operating income   2,226.3       1,789.9         24.4        18.1      16.2 Interest income    57.0          51.4            10.9        0.5       0.5 and other, net Interest expense   (47.7     )   (19.0     )     151.1       (0.4  )   (0.2  ) Earnings before    2,235.6       1,822.3         22.7        18.2      16.4 income taxes Income taxes       755.4        581.4          29.9        6.2      5.2    Net earnings including          1,480.2       1,240.9         19.3        12.1      11.2 noncontrolling interests Net earnings attributable to    (0.1      )   0.6            nm          —        —      noncontrolling interests Net earnings attributable to    $ 1,480.3    $ 1,240.3      19.4  %     12.1  %   11.2  % Starbucks                                                                               Net earnings per common share -     $ 1.94       $ 1.63         19.0  % diluted Weighted avg. shares             763.9         761.5 outstanding - diluted                                                                               Cash dividends declared per       $ 0.78        $ 0.63 share                                                                               Supplemental Ratios: Store operating expenses as a percentage of                                                35.9  %   36.6  % company-operated store revenues Effective tax rate including                                               33.8  %   31.9  % 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                                                                                     Jun 29,      Jun 30,       %            Jun 29,  Jun 30,                    2014          2013            Change       2014      2013                                                               As a % of                                                               Americas Quarter Ended                                                 total net                                                               revenues Net revenues: Company-operated   $ 2,772.3     $ 2,536.9       9.3    %     90.7  %   91.4  % stores Licensed stores    275.6         228.5           20.6         9.0       8.2 CPG, foodservice   9.8          11.1           (11.7  )     0.3      0.4    and other Total net          3,057.7       2,776.5         10.1         100.0     100.0 revenues Cost of sales including          1,130.0       1,051.2         7.5          37.0      37.9 occupancy costs Store operating    1,002.4       934.8           7.2          32.8      33.7 expenses Other operating    26.2          23.0            13.9         0.9       0.8 expenses Depreciation and amortization       119.5         105.2           13.6         3.9       3.8 expenses General and administrative     51.1         43.0           18.8         1.7      1.5    expenses Total operating    2,329.2      2,157.2        8.0          76.2     77.7   expenses Operating income   $ 728.5      $ 619.3        17.6   %     23.8  %   22.3  % Supplemental Ratios: Store operating expenses as a percentage of                                                 36.2  %   36.8  % company-operated store revenues                                                                                Three Quarters Ended Net revenues: Company-operated   $ 8,120.6     $ 7,499.5       8.3    %     90.8  %   91.2  % stores Licensed stores    787.6         684.4           15.1         8.8       8.3 CPG, foodservice   31.2         37.3           (16.4  )     0.3      0.5    and other Total net          8,939.4       8,221.2         8.7          100.0     100.0 revenues Cost of sales including          3,353.8       3,143.6         6.7          37.5      38.2 occupancy costs Store operating    2,965.9       2,786.6         6.4          33.2      33.9 expenses Other operating    75.2          74.1            1.5          0.8       0.9 expenses Depreciation and amortization       346.6         316.2           9.6          3.9       3.8 expenses General and administrative     131.9        143.9          (8.3   )     1.5      1.8    expenses Total operating    6,873.4       6,464.4         6.3          76.9      78.6 expenses Income from        —            2.4            (100.0 )     —        —      equity investees Operating income   $ 2,066.0    $ 1,759.2      17.4   %     23.1  %   21.4  % Supplemental Ratios: Store operating expenses as a percentage of                                                 36.5  %   37.2  % company-operated store revenues                                                                                                                                                                                                                                                        EMEA                                                                                   Jun 29,   Jun 30,    %           Jun 29,   Jun 30,                      2014        2013          Change       2014       2013                                                             As a % of EMEA Quarter Ended                                               total net revenues Net revenues: Company-operated     $ 251.8     $ 228.2       10.3   %     77.8   %   79.5  % stores Licensed stores      60.8        49.6          22.6         18.8       17.3 CPG, foodservice     10.9       9.4          16.0         3.4       3.3    and other Total net revenues   323.5       287.2         12.6         100.0      100.0 Cost of sales including            161.4       147.5         9.4          49.9       51.4 occupancy costs Store operating      91.4        85.8          6.5          28.3       29.9 expenses Other operating      12.5        9.9           26.3         3.9        3.4 expenses Depreciation and amortization         15.1        13.7          10.2         4.7        4.8 expenses General and administrative       15.0       21.0         (28.6  )     4.6       7.3    expenses Total operating      295.4       277.9         6.3          91.3       96.8 expenses Income from equity   1.1        —            nm           0.3       —      investees Operating income     $ 29.2     $ 9.3        214.0  %     9.0    %   3.2   % Supplemental Ratios: Store operating expenses as a percentage of                                               36.3   %   37.6  % company-operated store revenues                                                                               Three Quarters Ended Net revenues: Company-operated     $ 766.3     $ 699.9       9.5    %     78.8   %   80.8  % stores Licensed stores      175.8       139.5         26.0         18.1       16.1 CPG, foodservice     30.9       27.2         13.6         3.2       3.1    and other Total net revenues   973.0       866.6         12.3         100.0      100.0 Cost of sales including            487.9       440.8         10.7         50.1       50.9 occupancy costs Store operating      280.1       259.3         8.0          28.8       29.9 expenses Other operating      35.9        29.0          23.8         3.7        3.3 expenses Depreciation and amortization         44.5        41.6          7.0          4.6        4.8 expenses General and administrative       47.1       59.0         (20.2  )     4.8       6.8    expenses Total operating      895.5       829.7         7.9          92.0       95.7 expenses Income from equity   3.0        —            nm           0.3       —      investees Operating income     $ 80.5     $ 36.9       118.2  %     8.3    %   4.3   % Supplemental Ratios: Store operating expenses as a percentage of                                               36.6   %   37.0  % company-operated store revenues                                                                                                                                                                                                                                                         China / Asia Pacific (CAP)                                                                                   Jun 29,   Jun 30,    %           Jun 29,   Jun 30,                      2014        2013          Change       2014       2013                                                             As a % of CAP Quarter Ended                                               total net revenues Net revenues: Company-operated     $ 217.0     $ 171.6       26.5   %     75.5   %   73.4  % stores Licensed stores      70.6       62.1         13.7         24.5      26.6   Total net revenues   287.6       233.7         23.1         100.0      100.0 Cost of sales including            137.8       112.5         22.5         47.9       48.1 occupancy costs Store operating      54.8        42.2          29.9         19.1       18.1 expenses Other operating      13.2        12.0          10.0         4.6        5.1 expenses Depreciation and amortization         11.3        8.6           31.4         3.9        3.7 expenses General and administrative       16.0       14.0         14.3         5.6       6.0    expenses Total operating      233.1       189.3         23.1         81.1       81.0 expenses Income from equity   46.3       40.3         14.9         16.1      17.2   investees Operating income     $ 100.8    $ 84.7       19.0   %     35.0   %   36.2  % Supplemental Ratios: Store operating expenses as a percentage of                                               25.3   %   24.6  % company-operated store revenues                                                                               Three Quarters Ended Net revenues: Company-operated     $ 621.1     $ 478.6       29.8   %     75.8   %   72.4  % stores Licensed stores      198.7      182.8        8.7          24.2      27.6   Total net revenues   819.8       661.4         23.9         100.0      100.0 Cost of sales including            398.0       323.9         22.9         48.5       49.0 occupancy costs Store operating      158.5       121.9         30.0         19.3       18.4 expenses Other operating      34.8        33.7          3.3          4.2        5.1 expenses Depreciation and amortization         33.4        24.4          36.9         4.1        3.7 expenses General and administrative       43.1       37.5         14.9         5.3       5.7    expenses Total operating      667.8       541.4         23.3         81.5       81.9 expenses Income from equity   116.8      105.3        10.9         14.2      15.9   investees Operating income     $ 268.8    $ 225.3      19.3   %     32.8   %   34.1  % Supplemental Ratios: Store operating expenses as a percentage of                                               25.5   %   25.5  % company-operated store revenues                                                                                                                                             Channel Development                                                                                  Jun 29,     Jun 30,    %           Jun 29,  Jun 30,                     2014          2013          Change       2014      2013                                                              As a % of                                                              Channel                                                              Development Quarter Ended                                                total net                                                              revenues ^(1) Net revenues: CPG                 $  286.6      $ 246.9       16.1   %     76.4  %   74.6  % Foodservice^(1)     88.7         84.1         5.5          23.6     25.4   Total net           375.3         331.0         13.4         100.0     100.0 revenues Cost of sales       208.3         213.1         (2.3   )     55.5      64.4 Other operating     48.3          39.0          23.8         12.9      11.8 expenses^(1) Depreciation and amortization        0.4           0.2           100.0        0.1       0.1 expenses General and administrative      4.5          5.5          (18.2  )     1.2      1.7    expenses Total operating     261.5         257.8         1.4          69.7      77.9 expenses Income from         25.5         23.1         10.4         6.8      7.0    equity investees Operating income    $  139.3     $ 96.3       44.7   %     37.1  %   29.1  %                                                                               Three Quarters Ended Net revenues: CPG                 $  875.1      $ 789.8       10.8   %     76.3  %   75.7  % Foodservice^(1)     271.7        253.7        7.1          23.7     24.3   Total net           1,146.8       1,043.5       9.9          100.0     100.0 revenues Cost of sales       667.5         660.9         1.0          58.2      63.3 Other operating     142.9         140.5         1.7          12.5      13.5 expenses^(1) Depreciation and amortization        1.2           0.9           33.3         0.1       0.1 expenses General and administrative      13.8         16.8         (17.9  )     1.2      1.6    expenses Total operating     825.4         819.1         0.8          72.0      78.5 expenses Income from         64.1         62.7         2.2          5.6      6.0    equity investees Operating income    $  385.5     $ 287.1      34.3   %     33.6  %   27.5  % ^(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                                                                                          Jun 29,              Jun 30,             %                            2014                2013              Change Quarter Ended Net revenues: Company-operated           $  49.4               $  49.6              (0.4  )% stores Licensed stores            1.1                   1.8                  (38.9 ) CPG, foodservice           59.1                 55.5                6.5 and other^(1) Total net                  109.6                 106.9                2.5 revenues Cost of sales including                  65.9                  66.5                 (0.9  ) occupancy costs Store operating            27.9                  21.3                 31.0 expenses Other operating            20.5                  15.2                 34.9 expenses^(1) Depreciation and amortization               3.9                   3.6                  8.3 expenses General and administrative             10.3                 9.7                 6.2 expenses Total operating            128.5                116.3               10.5 expenses Operating loss             $  (18.9  )           $  (9.4   )          101.1 %                                                                              Three Quarters Ended Net revenues: Company-operated           $  194.3              $  105.7             83.8  % stores Licensed stores            4.0                   7.5                  (46.7 ) CPG, foodservice           189.8                172.2               10.2 and other^(1) Total net                  388.1                 285.4                36.0 revenues Cost of sales including                  217.2                 172.5                25.9 occupancy costs Store operating            81.6                  44.4                 83.8 expenses Other operating            58.1                  53.8                 8.0 expenses^(1) Depreciation and amortization               11.3                  7.9                  43.0 expenses General and administrative             32.9                 24.8                32.7 expenses Total operating            401.1                303.4               32.2 expenses Operating loss             $  (13.0  )           $  (18.0  )          (27.8 )% ^(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.                             Supplemental Information  The following supplemental information is provided for historical and comparative purposes.  Fiscal Third Quarter 2014 U.S. Supplemental Data                                                                                                         Quarter Ended                     ($ in millions)                    Jun 29, 2014     Jun 30, 2013   Change Revenues                           $2,731.2         $2,450.2         11% Comparable Store Sales Growth^(1)  7%                 9% Change in Transactions             2%                 7% Change in Ticket                   5%               2%              ^(1) Includes only Starbucks company-operated stores open 13 months or longer                                                                        Store Data:                                                                                               Net stores opened (closed) during the                                 period                      Quarter Ended      Three Quarters      Stores open as of                                          Ended                      Jun 29,    Jun      Jun 29,   Jun 30,   Jun 29,    Jun                      2014      30,      2014     2013      2014       30,                                 2013                                    2013 Americas Company-operated     69         62       155       112       8,233      7,914 stores Licensed stores      80        96      264      228      5,679     5,239                      149       158     419      340      13,912    13,153 EMEA^(1) Company-operated     (3   )     1        1         (23   )   839        844 stores Licensed stores      40        42      132      95       1,263     1,097                      37        43      133      72       2,102     1,941 CAP Company-operated     45         48       159       161       1,065      827 stores Licensed stores      115       71      384      230      3,360     2,858                      160       119     543      391      4,425     3,685 All Other Segments^(2) Company-operated     10         27       21        336       378        350 stores Licensed stores      (12  )     (6   )   (20   )   4        46        80                      (2   )     21      1        340      424       430                                                                Total Company        344       341     1,096    1,143    20,863    19,209 ^(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) Net new stores for the three quarters ended June30, 2013 includes 337 Teavana stores acquired in the second quarter of fiscal 2013.  Non-GAAP Disclosure  In addition to the GAAP results provided in this release, the company provides expected non-GAAP earnings per share for Q4 fiscal 2014 and full year fiscal 2014.These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States.The GAAP measure most directly comparable to non-GAAP earnings per share is diluted net earnings per share.  The expected Q4 fiscal 2014 and full year fiscal 2014 non-GAAP earnings per share being furnished exclude the estimated non-routine net benefit related to the sale of certain retail operations that may close in the fourth quarter of fiscal 2014. The full year fiscal 2014 non-GAAP earnings per share being furnished also exclude the benefit recognized from a litigation credit in Q1 fiscal 2014. The company’s management believes that providing these non-GAAP financial measures better enables investors to understand and evaluate the company’s prospective operating performance.More specifically, management excludes these two non-routine benefits because it believes that the impacts of these benefits do not reflect expected future gains or expenses beyond fiscal 2014 and do not contribute to a meaningful evaluation of the company’s future operating performance or comparisons to the company’s past operating performance.  These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP.Other companies may calculate these non-GAAP financial measures differently than the company does, limiting the usefulness of those measures for comparative purposes.                                                              STARBUCKS CORPORATION RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (unaudited)                                              Quarter Ended       Year Ended                                              Sep 28,             Sep 28,                                              2014                2014 Consolidated Projected diluted net earnings per share     $0.76 - $0.78       $2.70 - $2.72 (GAAP) Litigation credit                            —                   (0.02     ) Projected net benefit on transactions        (0.03    )          (0.03     ) that may close in Q4 2014 Projected non-GAAP earnings per share        $0.73 - $0.75       $2.65 - $2.67  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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