starbucks corp (SBUX) Key Developments
Starbucks Corporation Plans to Open Stores in 15 US Cities
Jul 24 15
Starbucks Corporation has announced plans to open stores in 15 US cities. At least five stores expected to open in 2016. These stores will be a key strategy in achieving the company's previously stated goal of hiring 10,000 Opportunity Youth young people between the ages of 16-24 who face systemic barriers to meaningful jobs and education and the 100,000 Opportunities Initiative's collective goal of hiring 100,000 Opportunity Youth by 2018. Starbucks will open the first of these stores in the Englewood neighborhood of Chicago's south side; the West Florissant neighborhood in Ferguson, Missouri; the Jamaica neighborhood in Queens, New York; Milwaukee, Wisconsin; and will remodel its store at 7th & Camelback in Phoenix, Arizona. Each of these locations will have an onsite training space where young people can learn valuable customer service and retail skills, based on the same world-class training Starbucks partners (employees) receive.
Starbucks and PepsiCo Enters into an Agreement for the Marketing, Sale and Distribution of Starbucks®Ready-To-Drink
Jul 23 15
Starbucks and PepsiCo, Inc. announced they have entered into an agreement for the marketing, sale and distribution of Starbucks®ready-to-drink (RTD) coffee and energy beverages including Starbucks® Frappuccino® chilled coffee drinks, Starbucks Double Shot® Espresso and Cream, and Starbucks Refreshers® beverages in Latin America. The RTD coffee and energy beverage category in Latin America is an estimated $4 billion business and is projected to grow by 22% over the next five years. The agreement leverages the respective strengths of Starbucks and PepsiCo to bring a carefully selected portfolio of StarbucksÂ® RTD coffee and energy beverages to consumers in Latin America unlocking new market opportunities for each company. Starbucks will provide coffee expertise and PepsiCo will sell and distribute Starbucks® RTD coffee and energy beverages leveraging its expansive network and experience across the region. Together, both companies will continue to market, innovate and further develop the brand in Latin America.
Starbucks Corporation Declares Cash Dividend, Payable on August 21, 2015
Jul 23 15
The Board of Directors of Starbucks Corporation declared a cash dividend of $0.16 per share, payable on August 21, 2015 to shareholders of record as of August 6, 2015.
Starbucks Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Year to Date Ended June 28, 2015; Provides Earnings Guidance for the Fourth Quarter and Full Year Ended September 27, 2015
Jul 23 15
Starbucks Corporation reported unaudited consolidated earnings results for the third quarter and year to date ended June 28, 2015. For the quarter, the company's total net revenue was $4,881.2 million compared to $4,153.7 million a year ago. Operating income was $938.6 million compared to $768.5 million a year ago. Earnings before income taxes was $945.0 million compared to $771.5 million a year ago. Net earnings per diluted common share was $0.41 compared to $0.34 million a year ago. The increase was primarily driven by incremental revenues from the acquisition of Starbucks Japan, a 7% increase in global comparable store sales and the opening of 1,592 net new stores over the past 12 months. Net earnings attributable to the company was $626.5 million compared to $512.6 million a year ago.
For the year to date, the company's total net revenue was $14,247.9 million compared to $12,267.1 million a year ago. Operating income was $2,631.6 million compared to $2,226.3 million a year ago. Net earnings per diluted common share was $1.39 compared to $0.97 million a year ago. Net earnings attributable to the company was $2,104.9 million compared to $1,480.3 million a year ago. Earnings before income taxes was $3,006.5 million compared to $2,235.6 million a year ago.
For the fourth quarter, the company expects GAAP earnings per Share in the range of $0.38 to $0.39 and Non-GAAP earnings per share in the range of $0.42 to $0.43.
For the year, the company expects consolidated tax rate of approximately 31% on a GAAP basis, revenue growth of 16% to 18%, GAAP earnings per Share of $1.77 to $1.78 and Non-GAAP earnings per share in the range of $1.57 to $1.58. Full year GAAP operating margin is expected to be flat to fiscal year 2014 due to the impact of the acquisition of Starbucks Japan; full year non-GAAP operating margin is still expected to modestly improve over prior year non-GAAP operating margin.
Starbucks Plans to Open Two-Story Sharon Square Location
Jul 21 15
Starbucks will open a two-story freestanding coffee house at Sharon Square. Plans call for the 3,000-square-foot building to open next summer. Sharon Square is a mixed-use development at Sharon and Fairview roads. The Starbucks store will be at the Sharon Road entrance, opposite the SunTrust office building.