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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