Starbucks Reports Q4 and Full Fiscal Year 2024 Results
Starbucks reported its Q4 and full fiscal year 2024 results, reflecting a challenged customer experience. Q4 consolidated net revenues declined by 3% to $9.1 billion. Global comparable store sales fell by 7%, driven by an 8% decline in transactions, partially offset by a 2% increase in average ticket.
North America and U.S. comparable store sales declined by 6%, while international sales fell by 9%. The company opened 722 new stores, ending the period with 40,199 stores globally. GAAP and Non-GAAP EPS were $0.80, a 25% decline year-over-year. GAAP operating margin contracted by 380 basis points to 14.4%.
For the full fiscal year, consolidated net revenues rose by 1% to $36.2 billion. Global comparable store sales declined by 2%. GAAP EPS for the year was $3.31, an 8% decrease. Starbucks Rewards membership in the U.S. grew 4% to 33.8 million. The company has suspended guidance for fiscal 2025 to reassess business strategies.
Starbucks ha riportato i risultati del Q4 e dell'intero anno fiscale 2024, evidenziando un'esperienza del cliente messa a dura prova. I ricavi netti consolidati del Q4 sono diminuiti del 3% a $9,1 miliardi. Le vendite comparabili globali nei negozi sono calate del 7%, a causa di una diminuzione dell'8% nelle transazioni, parzialmente compensata da un aumento del 2% nel valore medio degli scontrini.
Le vendite comparabili in Nord America e negli Stati Uniti sono diminuite del 6%, mentre le vendite internazionali sono scese del 9%. L'azienda ha aperto 722 nuovi negozi, chiudendo il periodo con 40.199 negozi a livello globale. L'utile per azione (EPS) GAAP e Non-GAAP è stato di $0,80, con un calo del 25% rispetto all'anno precedente. Il margine operativo GAAP si è contratto di 380 punti base, arrivando al 14,4%.
Per l'intero anno fiscale, i ricavi netti consolidati sono aumentati dell'1% a $36,2 miliardi. Le vendite comparabili globali sono diminuite del 2%. L'EPS GAAP per l'anno è stato di $3,31, con una diminuzione dell'8%. La membership di Starbucks Rewards negli Stati Uniti è cresciuta del 4% fino a 33,8 milioni. L'azienda ha sospeso le previsioni per il fiscale 2025 per rivalutare le strategie aziendali.
Starbucks informó sus resultados del Q4 y del año fiscal completo 2024, reflejando una experiencia del cliente desafiada. Los ingresos netos consolidados del Q4 cayeron un 3% hasta $9,1 mil millones. Las ventas comparables globales de tiendas disminuyeron un 7%, impulsadas por una caída del 8% en las transacciones, parcialmente compensada por un aumento del 2% en el ticket promedio.
Las ventas comparables de América del Norte y EE. UU. disminuyeron un 6%, mientras que las ventas internacionales cayeron un 9%. La compañía abrió 722 nuevas tiendas, cerrando el periodo con 40.199 tiendas a nivel global. El EPS GAAP y No GAAP fue de $0,80, una disminución del 25% año tras año. El margen operativo GAAP se contrajo en 380 puntos base al 14,4%.
Para el año fiscal completo, los ingresos netos consolidados aumentaron un 1% hasta $36,2 mil millones. Las ventas comparables globales cayeron un 2%. El EPS GAAP del año fue de $3,31, una disminución del 8%. La membresía de Starbucks Rewards en EE. UU. creció un 4%, alcanzando los 33,8 millones. La compañía ha suspendido la guía para el año fiscal 2025 para reevaluar las estrategias comerciales.
스타벅스는 2024 회계연도 4분기 및 전체 결과를 보고하며 어려운 고객 경험을 반영했습니다. 4분기 총 매출은 3% 감소한 91억 달러에 달했습니다. 글로벌 비교 매장 매출은 7% 감소했으며, 이는 거래 수의 8% 감소와 평균 구매 금액의 2% 증가로 부분 보완되었습니다.
북미 및 미국의 비교 매장 매출은 6% 감소했으며, 국제 매출은 9% 감소했습니다. 회사는 722개의 신규 매장을 열어 전 세계에 40,199개의 매장을 운영하고 있습니다. GAAP 및 비-GAAP 주당 순익(EPS)은 0.80달러로, 전년 대비 25% 감소했습니다. GAAP 운영 마진은 14.4%로 380베이시스 포인트 축소되었습니다.
전체 회계연도 동안, 총 매출은 1% 증가하여 362억 달러에 달했습니다. 글로벌 비교 매장 매출은 2% 감소했습니다. 올해 GAAP EPS는 3.31달러로, 8% 감소했습니다. 미국 내 스타벅스 리워드 회원 수는 4% 증가하여 3,380만 명에 도달했습니다. 회사는 2025 회계연도에 대한 가이드를 중단하고 비즈니스 전략을 재평가하고 있습니다.
Starbucks a publié ses résultats du Q4 et de l'ensemble de l'exercice fiscal 2024, révélant une expérience client difficile. Les revenus nets consolidés du Q4 ont diminué de 3 % pour atteindre 9,1 milliards de dollars. Les ventes comparables mondiales des magasins ont chuté de 7 %, en raison d'une baisse de 8 % des transactions, partiellement compensée par une augmentation de 2 % du montant moyen des tickets.
Les ventes comparables en Amérique du Nord et aux États-Unis ont diminué de 6 %, tandis que les ventes internationales ont baissé de 9 %. L'entreprise a ouvert 722 nouveaux magasins, terminant la période avec 40 199 magasins dans le monde. Le bénéfice par action (EPS) GAAP et Non-GAAP était de 0,80 $, soit une baisse de 25 % d'une année sur l'autre. La marge opérationnelle GAAP a diminué de 380 points de base pour atteindre 14,4 %.
Pour l'ensemble de l'exercice fiscal, les revenus nets consolidés ont augmenté de 1 % pour atteindre 36,2 milliards de dollars. Les ventes comparables mondiales ont baissé de 2 %. L'EPS GAAP pour l'année était de 3,31 $, soit une baisse de 8 %. L'adhésion à Starbucks Rewards aux États-Unis a augmenté de 4 % pour atteindre 33,8 millions. L'entreprise a suspendu ses prévisions pour l'exercice 2025 afin de réévaluer ses stratégies commerciales.
Starbucks hat die Ergebnisse des Q4 und des gesamten Geschäftsjahres 2024 veröffentlicht, was auf eine herausfordernde Kundenerfahrung hinweist. Die konsolidierten Nettoumsätze im Q4 sanken um 3 % auf 9,1 Milliarden US-Dollar. Globale vergleichbare Filialverkäufe gingen um 7 % zurück, was durch einen Rückgang der Transaktionen um 8 % und teilweise durch einen Anstieg des durchschnittlichen Umsatzes um 2 % ausgeglichen wurde.
Die vergleichbaren Filialverkäufe in Nordamerika und den USA sanken um 6 %, während die internationalen Verkäufe um 9 % zurückgingen. Das Unternehmen eröffnete 722 neue Filialen und schloss den Zeitraum mit weltweit 40.199 Filialen ab. Das GAAP und Non-GAAP EPS betrug 0,80 US-Dollar, ein Rückgang von 25 % im Jahresvergleich. Die GAAP-Betriebsrendite verringerte sich um 380 Basispunkte auf 14,4 %.
Für das gesamte Geschäftsjahr stiegen die konsolidierten Nettoumsätze um 1 % auf 36,2 Milliarden US-Dollar. Die globalen vergleichbaren Filialverkäufe sanken um 2 %. Das GAAP EPS für das Jahr betrug 3,31 US-Dollar, was einem Rückgang von 8 % entspricht. Die Mitgliedschaft bei Starbucks Rewards in den USA wuchs um 4 % auf 33,8 Millionen. Das Unternehmen hat die Prognose für das Geschäftsjahr 2025 ausgesetzt, um die Geschäftsstrategien neu zu bewerten.
- Opened 722 new stores in Q4, ending with 40,199 stores globally.
- Starbucks Rewards membership in the U.S. grew 4% to 33.8 million.
- Q4 consolidated net revenues declined by 3% to $9.1 billion.
- Global comparable store sales declined by 7%.
- GAAP and Non-GAAP EPS of $0.80, a 25% year-over-year decline.
- GAAP operating margin contracted by 380 basis points to 14.4%.
- Full fiscal year GAAP EPS declined by 8% to $3.31.
- North America and U.S. comparable store sales fell by 6%.
- International comparable store sales declined by 9%.
Insights
Starbucks' Q4 results reveal significant operational challenges, with global comparable sales declining 7% and
The customer experience deterioration is particularly alarming, with declining frequency across all segments. The divergence between transaction counts and ticket sizes (
Results Reflect Challenged Customer Experience; Management is Developing a Plan to Get Back to Starbucks
Q4 Consolidated Net Revenues Down
Q4 GAAP and Non-GAAP EPS of
Q4 Active
Q4 Fiscal Year 2024 Highlights
-
Global comparable store sales declined
7% , driven by an8% decline in comparable transactions, partially offset by a2% increase in average ticket-
North America andU.S. comparable store sales declined6% , driven by a10% decline in comparable transactions, partially offset by a4% increase in average ticket -
International comparable store sales declined
9% , driven by a5% decline in average ticket and a4% decline in comparable transactions;China comparable store sales declined14% , driven by an8% decline in average ticket and a6% decline in comparable transactions
-
-
The company opened 722 net new stores in Q4, ending the period with 40,199 stores:
52% company-operated and48% licensed-
At the end of Q4, stores in the
U.S. andChina comprised61% of the company’s global portfolio, with 16,941 and 7,596 stores in theU.S. andChina , respectively
-
At the end of Q4, stores in the
-
Consolidated net revenues declined
3% , including on a constant currency basis, to$9.1 billion -
GAAP operating margin contracted 380 basis points year-over-year to
14.4% , primarily driven by deleverage, investments in store partner wages and benefits, and increased promotional activity. This contraction was partially offset by pricing and in-store operational efficiencies.-
Non-GAAP operating margin contracted 380 basis points year-over-year to
14.4% , or contracted 370 basis points on a constant currency basis
-
Non-GAAP operating margin contracted 380 basis points year-over-year to
-
GAAP earnings per share of
declined$0.80 25% over prior year-
Non-GAAP earnings per share of
declined$0.80 25% over prior year, or declined24% on a constant currency basis
-
Non-GAAP earnings per share of
-
Starbucks Rewards loyalty program 90-day active members in the
U.S. totaled 33.8 million, up4% year-over-year and flat quarter-over-quarter
Full Fiscal Year 2024 Highlights
-
Global comparable store sales declined
2% , driven by a4% decline in comparable transactions, partially offset by a2% increase in average ticket-
North America andU.S. comparable store sales declined2% , driven by a5% decline in comparable transactions, partially offset by a4% increase in average ticket -
International comparable store sales declined
4% , driven by a4% decline in average ticket;China comparable store sales declined8% , driven by an8% decline in average ticket
-
-
Consolidated net revenues increased
1% , including on a constant currency basis, to$36.2 billion -
GAAP operating margin contracted 130 basis points year-over-year to
15.0% , primarily driven by investments in store partner wages and benefits, deleverage, and increased promotional activity. This contraction was partially offset by pricing and in-store operational efficiencies.-
Non-GAAP operating margin contracted 110 basis points year-over-year, including on a constant currency basis, to
15.0%
-
Non-GAAP operating margin contracted 110 basis points year-over-year, including on a constant currency basis, to
-
GAAP earnings per share of
declined$3.31 8% over prior year-
Non-GAAP earnings per share of
declined$3.31 6% over prior year, including on a constant currency basis
-
Non-GAAP earnings per share of
“As shared in our Press Release last week, our results do not reflect the strength of our brand,” commented Rachel Ruggeri, chief financial officer. “I have seen what Starbucks is capable of when we focus on what we do best. I have confidence in our ability to turn around our business and expect we will return to long-term growth,” Ruggeri added.
“It is clear we need to fundamentally change our strategy to win back customers. ‘Back to Starbucks’ is that fundamental change,” commented Brian Niccol, chairman and chief executive officer. “My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back. We have a clear plan and are moving quickly to return Starbucks to growth,” Niccol added.
Q4 North America Segment Results
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Quarter Ended |
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($ in millions) |
Sep 29, 2024 |
|
Oct 1, 2023 |
|
Change (%) |
Change in Comparable Store Sales (1) |
(6)% |
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|
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|
Change in Transactions |
(10)% |
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|
Change in Ticket |
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|
Store Count |
18,424 |
|
17,810 |
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|
Revenues |
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|
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|
(3)% |
Operating Income |
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|
(22)% |
Operating Margin |
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|
(450) bps |
(1) |
Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours remain in comparable store sales while stores identified for permanent closure have been removed. |
Net revenues for the
Operating income decreased to
Q4 International Segment Results
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Quarter Ended |
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||
($ in millions) |
Sep 29, 2024 |
|
Oct 1, 2023 |
|
Change (%) |
Change in Comparable Store Sales (1) |
(9)% |
|
|
|
|
Change in Transactions |
(4)% |
|
|
|
|
Change in Ticket |
(5)% |
|
(1)% |
|
|
Store Count |
21,775 |
|
20,228 |
|
|
Revenues |
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|
(4)% |
Operating Income |
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|
(6)% |
Operating Margin |
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|
(30) bps |
(1) |
Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours remain in comparable store sales while stores identified for permanent closure have been removed. |
Net revenues for the International segment declined
Operating income decreased to
Q4 Channel Development Segment Results
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|
Quarter Ended |
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||
($ in millions) |
Sep 29, 2024 |
|
Oct 1, 2023 |
|
Change (%) |
Revenues |
|
|
|
|
(4)% |
Operating Income |
|
|
|
|
(2)% |
Operating Margin |
|
|
|
|
110 bps |
Net revenues for the Channel Development segment declined
Operating income decreased to
Fiscal Year 2025 Financial Targets
As stated in our October 22, 2024 announcement, given the company’s ceo transition coupled with the current state of the business, guidance is suspended for full fiscal year 2025. We believe this will allow ample opportunity to complete an assessment of the business and solidify key strategies, while stabilizing and positioning the business for long-term growth. The company will provide initial information regarding its new strategies during its Q4 and full fiscal year 2024 earnings conference call starting today at 2:00 p.m. Pacific Time. Our October 22, 2024 announcement and accompanying prepared remarks from our chairman and ceo can be accessed on the company's Investor Relations website. The company uses its website as a tool to disclose important information about the company and comply with its disclosure obligations under Regulation Fair Disclosure.
Company Update
- In August, the company announced that Brian Niccol had been appointed chief executive officer and chairman of the Starbucks Board of Directors (the "Board"), effective September 9, 2024. Mellody Hobson, former chairman of the Board, became the lead independent director of the Board. Laxman Narasimhan, former chief executive officer and member of the Board, stepped down from his position effective August 12, 2024, with the Board appointing Rachel Ruggeri, chief financial officer, as interim chief executive officer.
- In September, Brian Niccol shared an open letter of his early observations and commitment to getting "Back to Starbucks," a welcoming coffeehouse where people gather and where we serve the finest coffee, handcrafted by our skilled baristas. Niccol also shared his initial four key areas of focus.
-
In September, the company announced Michael Conway, chief executive officer,
North America , would retire from the company effective November 30, 2024. - In September, the company announced Molly Liu as executive vice president and chief executive officer of Starbucks China, and Belinda Wong as chairwoman of Starbucks China, each effective September 30, 2024.
-
In October, the company announced the addition of two new coffee innovation farms located in
Guatemala andCosta Rica , with future farm investments inAfrica andAsia . The expansion of its collaborative coffee innovation network further connects farmers from around the world with resources to protect the future of coffee for all. - On October 22, 2024, the company shared preliminary Q4 and full fiscal year 2024 results, reflecting a challenged customer experience and reiterating a fundamental change to our strategy.
-
The Board declared a cash dividend of
per share, payable on November 29, 2024, to shareholders of record on November 15, 2024. The company had 58 consecutive quarters of dividend payouts with CAGR of approximately$0.61 20% over that time period, demonstrating the company's commitment to consistent value creation for shareholders.
Conference Call
Starbucks will hold a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Brian Niccol, chairman and ceo, and Rachel Ruggeri, cfo. The call will be webcast and can be accessed at http://investor.starbucks.com. A replay of the webcast will be available until end of day Friday, December 13, 2024.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 40,000 stores worldwide, 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 stories.starbucks.com or www.starbucks.com.
Forward-Looking Statements
Certain statements contained herein and in our investor conference call related to these results are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and in other filings with the SEC, as well as, among others:
- our ability to preserve, grow, and leverage our brands, including the risk of negative responses by consumers (such as boycotts or negative publicity campaigns), governmental actors (such as retaliatory legislative treatment), or other third parties who object to certain actions taken or not taken by the Company, which responses could adversely affect our brand value;
- the impact of our marketing strategies, promotional and advertising plans, pricing strategies, platforms, reformulations, innovations, or customer experience initiatives or investments;
- the costs and risks associated with, and the successful execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, and plans, including our "Back to Starbucks" plan;
- changes in consumer preferences, demand, consumption, or spending behavior, including due to shifts in demographic or health and wellness trends, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes;
- the ability of our business partners, suppliers and third-party providers to fulfill their responsibilities and commitments;
- the potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling;
- our ability to open new stores and efficiently maintain the attractiveness of our existing stores;
-
our dependence on the financial performance of our
North America operating segment, and our increasing dependence on certain international markets; - our anticipated operating expenses, including our anticipated total capital expenditures;
- inherent risks of operating a global business including changing conditions in our markets, local factors affecting store openings, protectionist trade or foreign investment policies, economic or trade sanctions, compliance with local laws and other regulations, and local labor policies and conditions, including labor strikes and work stoppages;
- higher costs, lower quality, or unavailability of coffee, dairy, cocoa, energy, water, raw materials, or product ingredients;
- the potential impact on our supply chain of adverse weather conditions, natural disasters, or significant increases in logistics costs;
- the ability of our supply chain to meet current or future business needs and our ability to scale and improve our forecasting, planning, production, and logistics management;
- a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers, whether resulting from broader local or global conditions, or dynamics specific to our relationships with such parties;
- the impact of unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, international trade disputes, government restrictions, geopolitical instability, higher inflation, or deflation;
- failure to meet our announced guidance or market expectations and the impact thereof;
- failure to attract or retain key executive or partner talent or successfully transition executives;
- the impacts of partner investments and changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts;
-
the impact of foreign currency translation, particularly a stronger
U.S. dollar; - the impact of, and our ability to respond to, substantial competition from new entrants, consolidations by competitors, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets;
- potential impacts of climate change;
- evolving corporate governance and public disclosure regulations and expectations;
- the potential impact of activist shareholder actions or tactics;
- failure to comply with applicable laws and changing legal and regulatory requirements;
- the impact or likelihood of significant legal disputes and proceedings, or government investigations;
- potential negative effects of, and our ability to respond to, a material failure, inadequacy or interruption of our information technology systems or those of our third-party business partners or service providers, or failure to comply with data protection laws; and
- our ability to adequately protect our intellectual property or adequately ensure that we are not infringing the intellectual property of others.
In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.
Key Metrics
We believe the company's financial results and long-term growth model will continue to be driven by new store openings, comparable store sales growth and operating margin management. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies.
STARBUCKS CORPORATION |
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CONSOLIDATED STATEMENTS OF EARNINGS |
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(unaudited, in millions, except per share data) |
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|
Quarter Ended |
|
Quarter Ended |
|||||||||||||
Sep 29,
|
|
Oct 1,
|
|
%
|
|
Sep 29,
|
|
Oct 1,
|
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|
As a % of total net revenues |
|||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|||||||
Company-operated stores |
$ |
7,442.1 |
|
|
$ |
7,679.9 |
|
|
(3.1 |
)% |
|
82.0 |
% |
|
81.9 |
% |
Licensed stores |
|
1,129.5 |
|
|
|
1,187.5 |
|
|
(4.9 |
) |
|
12.4 |
|
|
12.7 |
|
Other |
|
502.4 |
|
|
|
506.2 |
|
|
(0.8 |
) |
|
5.5 |
|
|
5.4 |
|
Total net revenues |
|
9,074.0 |
|
|
|
9,373.6 |
|
|
(3.2 |
) |
|
100.0 |
|
|
100.0 |
|
Product and distribution costs |
|
2,810.3 |
|
|
|
2,933.1 |
|
|
(4.2 |
) |
|
31.0 |
|
|
31.3 |
|
Store operating expenses |
|
3,881.7 |
|
|
|
3,721.3 |
|
|
4.3 |
|
|
42.8 |
|
|
39.7 |
|
Other operating expenses |
|
138.7 |
|
|
|
145.2 |
|
|
(4.5 |
) |
|
1.5 |
|
|
1.5 |
|
Depreciation and amortization expenses |
|
395.0 |
|
|
|
351.4 |
|
|
12.4 |
|
|
4.4 |
|
|
3.7 |
|
General and administrative expenses |
|
644.8 |
|
|
|
635.8 |
|
|
1.4 |
|
|
7.1 |
|
|
6.8 |
|
Total operating expenses |
|
7,870.5 |
|
|
|
7,786.8 |
|
|
1.1 |
|
|
86.7 |
|
|
83.1 |
|
Income from equity investees |
|
103.4 |
|
|
|
119.4 |
|
|
(13.4 |
) |
|
1.1 |
|
|
1.3 |
|
Operating income |
|
1,306.9 |
|
|
|
1,706.2 |
|
|
(23.4 |
) |
|
14.4 |
|
|
18.2 |
|
Interest income and other, net |
|
26.8 |
|
|
|
30.1 |
|
|
(11.0 |
) |
|
0.3 |
|
|
0.3 |
|
Interest expense |
|
(140.0 |
) |
|
|
(143.2 |
) |
|
(2.2 |
) |
|
(1.5 |
) |
|
(1.5 |
) |
Earnings before income taxes |
|
1,193.7 |
|
|
|
1,593.1 |
|
|
(25.1 |
) |
|
13.2 |
|
|
17.0 |
|
Income tax expense |
|
284.1 |
|
|
|
373.8 |
|
|
(24.0 |
) |
|
3.1 |
|
|
4.0 |
|
Net earnings including noncontrolling interests |
|
909.6 |
|
|
|
1,219.3 |
|
|
(25.4 |
) |
|
10.0 |
|
|
13.0 |
|
Net earnings attributable to noncontrolling interests |
|
0.3 |
|
|
|
0.0 |
|
|
nm |
|
0.0 |
|
|
0.0 |
|
|
Net earnings attributable to Starbucks |
$ |
909.3 |
|
|
$ |
1,219.3 |
|
|
(25.4 |
) |
|
10.0 |
% |
|
13.0 |
% |
Net earnings per common share - diluted |
$ |
0.80 |
|
|
$ |
1.06 |
|
|
(24.5 |
)% |
|
|
|
|
||
Weighted avg. shares outstanding - diluted |
|
1,137.3 |
|
|
|
1,149.4 |
|
|
|
|
|
|
|
|||
Cash dividends declared per share |
$ |
0.61 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|||
Supplemental Ratios: |
|
|
|
|
|
|
|
|
|
|||||||
Store operating expenses as a % of company-operated store revenues |
|
|
|
52.2 |
% |
|
48.5 |
% |
||||||||
Effective tax rate including noncontrolling interests |
|
|
|
23.8 |
% |
|
23.5 |
% |
|
Year Ended |
|
Year Ended |
|||||||||||||
Sep 29,
|
|
Oct 1,
|
|
%
|
|
Sep 29,
|
|
Oct 1,
|
||||||||
|
|
|
|
|
|
|
As a % of total net revenues |
|||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|||||||
Company-operated stores |
$ |
29,765.9 |
|
|
$ |
29,462.3 |
|
|
1.0 |
% |
|
82.3 |
% |
|
81.9 |
% |
Licensed stores |
|
4,505.1 |
|
|
|
4,512.7 |
|
|
(0.2 |
) |
|
12.5 |
|
|
12.5 |
|
Other |
|
1,905.2 |
|
|
|
2,000.6 |
|
|
(4.8 |
) |
|
5.3 |
|
|
5.6 |
|
Total net revenues |
|
36,176.2 |
|
|
|
35,975.6 |
|
|
0.6 |
|
|
100.0 |
|
|
100.0 |
|
Product and distribution costs |
|
11,180.6 |
|
|
|
11,409.1 |
|
|
(2.0 |
) |
|
30.9 |
|
|
31.7 |
|
Store operating expenses |
|
15,286.5 |
|
|
|
14,720.3 |
|
|
3.8 |
|
|
42.3 |
|
|
40.9 |
|
Other operating expenses |
|
565.6 |
|
|
|
539.4 |
|
|
4.9 |
|
|
1.6 |
|
|
1.5 |
|
Depreciation and amortization expenses |
|
1,512.6 |
|
|
|
1,362.6 |
|
|
11.0 |
|
|
4.2 |
|
|
3.8 |
|
General and administrative expenses |
|
2,523.3 |
|
|
|
2,441.3 |
|
|
3.4 |
|
|
7.0 |
|
|
6.8 |
|
Restructuring and impairments |
|
— |
|
|
|
21.8 |
|
|
nm |
|
— |
|
|
0.1 |
|
|
Total operating expenses |
|
31,068.6 |
|
|
|
30,494.5 |
|
|
1.9 |
|
|
85.9 |
|
|
84.8 |
|
Income from equity investees |
|
301.2 |
|
|
|
298.4 |
|
|
0.9 |
|
|
0.8 |
|
|
0.8 |
|
Gain from sale of assets |
|
— |
|
|
|
91.3 |
|
|
nm |
|
— |
|
|
0.3 |
|
|
Operating income |
|
5,408.8 |
|
|
|
5,870.8 |
|
|
(7.9 |
) |
|
15.0 |
|
|
16.3 |
|
Interest income and other, net |
|
122.8 |
|
|
|
81.2 |
|
|
51.2 |
|
|
0.3 |
|
|
0.2 |
|
Interest expense |
|
(562.0 |
) |
|
|
(550.1 |
) |
|
2.2 |
|
|
(1.6 |
) |
|
(1.5 |
) |
Earnings before income taxes |
|
4,969.6 |
|
|
|
5,401.9 |
|
|
(8.0 |
) |
|
13.7 |
|
|
15.0 |
|
Income tax expense |
|
1,207.3 |
|
|
|
1,277.2 |
|
|
(5.5 |
) |
|
3.3 |
|
|
3.6 |
|
Net earnings including noncontrolling interests |
|
3,762.3 |
|
|
|
4,124.7 |
|
|
(8.8 |
) |
|
10.4 |
|
|
11.5 |
|
Net earnings attributable to noncontrolling interests |
|
1.4 |
|
|
|
0.2 |
|
|
600.0 |
|
|
0.0 |
|
|
0.0 |
|
Net earnings attributable to Starbucks |
$ |
3,760.9 |
|
|
$ |
4,124.5 |
|
|
(8.8 |
) |
|
10.4 |
% |
|
11.5 |
% |
Net earnings per common share - diluted |
$ |
3.31 |
|
|
$ |
3.58 |
|
|
(7.5 |
)% |
|
|
|
|
||
Weighted avg. shares outstanding - diluted |
|
1,137.3 |
|
|
|
1,151.3 |
|
|
|
|
|
|
|
|||
Cash dividends declared per share |
$ |
2.32 |
|
|
$ |
2.16 |
|
|
|
|
|
|
|
|||
Supplemental Ratios: |
|
|
|
|
|
|
|
|
|
|||||||
Store operating expenses as a % of company-operated store revenues |
|
|
|
51.4 |
% |
|
50.0 |
% |
||||||||
Effective tax rate including noncontrolling interests |
|
|
|
24.3 |
% |
|
23.6 |
% |
Segment Results (in millions)
|
||||||||||||||||
Sep 29,
|
|
Oct 1,
|
|
%
|
|
Sep 29,
|
|
Oct 1,
|
||||||||
Quarter Ended |
|
|
|
|
|
|
As a % of |
|||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|||||||
Company-operated stores |
$ |
6,018.0 |
|
$ |
6,211.5 |
|
(3.1 |
)% |
|
89.9 |
% |
|
90.0 |
% |
||
Licensed stores |
|
673.4 |
|
|
|
685.9 |
|
|
(1.8 |
) |
|
10.1 |
|
|
9.9 |
|
Other |
|
0.5 |
|
|
|
2.6 |
|
|
(80.8 |
) |
|
0.0 |
|
|
0.0 |
|
Total net revenues |
|
6,691.9 |
|
|
|
6,900.0 |
|
|
(3.0 |
) |
|
100.0 |
|
|
100.0 |
|
Product and distribution costs |
|
1,854.5 |
|
|
|
1,905.7 |
|
|
(2.7 |
) |
|
27.7 |
|
|
27.6 |
|
Store operating expenses |
|
3,150.8 |
|
|
|
2,986.0 |
|
|
5.5 |
|
|
47.1 |
|
|
43.3 |
|
Other operating expenses |
|
67.0 |
|
|
|
67.1 |
|
|
(0.1 |
) |
|
1.0 |
|
|
1.0 |
|
Depreciation and amortization expenses |
|
278.2 |
|
|
|
236.6 |
|
|
17.6 |
|
|
4.2 |
|
|
3.4 |
|
General and administrative expenses |
|
87.9 |
|
|
|
103.2 |
|
|
(14.8 |
) |
|
1.3 |
|
|
1.5 |
|
Total operating expenses |
|
5,438.4 |
|
|
|
5,298.6 |
|
|
2.6 |
|
|
81.3 |
|
|
76.8 |
|
Operating income |
$ |
1,253.5 |
|
|
$ |
1,601.4 |
|
|
(21.7 |
)% |
|
18.7 |
% |
|
23.2 |
% |
Supplemental Ratio: |
|
|
|
|
|
|
|
|
|
|||||||
Store operating expenses as a % of company-operated store revenues |
|
|
|
52.4 |
% |
|
48.1 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Year Ended |
|
|
|
|
|
|
|
|
|
|||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|||||||
Company-operated stores |
$ |
24,258.7 |
|
|
$ |
23,905.4 |
|
|
1.5 |
% |
|
89.8 |
% |
|
90.0 |
% |
Licensed stores |
|
2,747.4 |
|
|
|
2,659.1 |
|
|
3.3 |
|
|
10.2 |
|
|
10.0 |
|
Other |
|
3.4 |
|
|
|
5.1 |
|
|
(33.3 |
) |
|
0.0 |
|
|
0.0 |
|
Total net revenues |
|
27,009.5 |
|
|
|
26,569.6 |
|
|
1.7 |
|
|
100.0 |
|
|
100.0 |
|
Product and distribution costs |
|
7,478.0 |
|
|
|
7,530.4 |
|
|
(0.7 |
) |
|
27.7 |
|
|
28.3 |
|
Store operating expenses |
|
12,467.1 |
|
|
|
11,959.2 |
|
|
4.2 |
|
|
46.2 |
|
|
45.0 |
|
Other operating expenses |
|
280.9 |
|
|
|
263.8 |
|
|
6.5 |
|
|
1.0 |
|
|
1.0 |
|
Depreciation and amortization expenses |
|
1,052.4 |
|
|
|
910.1 |
|
|
15.6 |
|
|
3.9 |
|
|
3.4 |
|
General and administrative expenses |
|
375.8 |
|
|
|
389.7 |
|
|
(3.6 |
) |
|
1.4 |
|
|
1.5 |
|
Restructuring and impairments |
|
— |
|
|
|
20.7 |
|
|
nm |
|
— |
|
|
0.1 |
|
|
Total operating expenses |
|
21,654.2 |
|
|
|
21,073.9 |
|
|
2.8 |
|
|
80.2 |
|
|
79.3 |
|
Operating income |
$ |
5,355.3 |
|
|
$ |
5,495.7 |
|
|
(2.6 |
)% |
|
19.8 |
% |
|
20.7 |
% |
Supplemental Ratio: |
|
|
|
|
|
|
|
|
|
|||||||
Store operating expenses as a % of company-operated store revenues |
|
|
|
51.4 |
% |
|
50.0 |
% |
International |
||||||||||||||||
Sep 29,
|
|
Oct 1,
|
|
%
|
|
Sep 29,
|
|
Oct 1,
|
||||||||
Quarter Ended |
|
|
|
|
|
|
As a % of International
|
|||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|||||||
Company-operated stores |
$ |
1,424.1 |
|
$ |
1,468.4 |
|
(3.0 |
)% |
|
75.2 |
% |
|
74.2 |
% |
||
Licensed stores |
|
456.1 |
|
|
|
501.6 |
|
|
(9.1 |
) |
|
24.1 |
|
|
25.3 |
|
Other |
|
13.0 |
|
|
|
9.9 |
|
|
31.3 |
|
|
0.7 |
|
|
0.5 |
|
Total net revenues |
|
1,893.2 |
|
|
|
1,979.9 |
|
|
(4.4 |
) |
|
100.0 |
|
|
100.0 |
|
Product and distribution costs |
|
651.6 |
|
|
|
704.7 |
|
|
(7.5 |
) |
|
34.4 |
|
|
35.6 |
|
Store operating expenses |
|
730.9 |
|
|
|
735.3 |
|
|
(0.6 |
) |
|
38.6 |
|
|
37.1 |
|
Other operating expenses |
|
56.3 |
|
|
|
64.0 |
|
|
(12.0 |
) |
|
3.0 |
|
|
3.2 |
|
Depreciation and amortization expenses |
|
87.3 |
|
|
|
84.3 |
|
|
3.6 |
|
|
4.6 |
|
|
4.3 |
|
General and administrative expenses |
|
84.9 |
|
|
|
91.0 |
|
|
(6.7 |
) |
|
4.5 |
|
|
4.6 |
|
Total operating expenses |
|
1,611.0 |
|
|
|
1,679.3 |
|
|
(4.1 |
) |
|
85.1 |
|
|
84.8 |
|
Income from equity investees |
|
0.7 |
|
|
|
0.7 |
|
|
— |
|
|
0.0 |
|
|
0.0 |
|
Operating income |
$ |
282.9 |
|
|
$ |
301.3 |
|
|
(6.1 |
)% |
|
14.9 |
% |
|
15.2 |
% |
Supplemental Ratio: |
|
|
|
|
|
|
|
|
|
|||||||
Store operating expenses as a % of company-operated store revenues |
|
|
|
51.3 |
% |
|
50.1 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Year Ended |
|
|
|
|
|
|
|
|
|
|||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|||||||
Company-operated stores |
$ |
5,507.2 |
|
|
$ |
5,556.9 |
|
|
(0.9 |
)% |
|
75.0 |
% |
|
74.2 |
% |
Licensed stores |
|
1,757.7 |
|
|
|
1,853.6 |
|
|
(5.2 |
) |
|
24.0 |
|
|
24.8 |
|
Other |
|
74.0 |
|
|
|
77.1 |
|
|
(4.0 |
) |
|
1.0 |
|
|
1.0 |
|
Total net revenues |
|
7,338.9 |
|
|
|
7,487.6 |
|
|
(2.0 |
) |
|
100.0 |
|
|
100.0 |
|
Product and distribution costs |
|
2,575.2 |
|
|
|
2,608.4 |
|
|
(1.3 |
) |
|
35.1 |
|
|
34.8 |
|
Store operating expenses |
|
2,819.4 |
|
|
|
2,761.1 |
|
|
2.1 |
|
|
38.4 |
|
|
36.9 |
|
Other operating expenses |
|
225.1 |
|
|
|
219.0 |
|
|
2.8 |
|
|
3.1 |
|
|
2.9 |
|
Depreciation and amortization expenses |
|
338.3 |
|
|
|
335.1 |
|
|
1.0 |
|
|
4.6 |
|
|
4.5 |
|
General and administrative expenses |
|
338.8 |
|
|
|
335.8 |
|
|
0.9 |
|
|
4.6 |
|
|
4.5 |
|
Total operating expenses |
|
6,296.8 |
|
|
|
6,259.4 |
|
|
0.6 |
|
|
85.8 |
|
|
83.6 |
|
Income from equity investees |
|
3.6 |
|
|
|
2.7 |
|
|
33.3 |
|
|
0.0 |
|
|
0.0 |
|
Operating income |
$ |
1,045.7 |
|
|
$ |
1,230.9 |
|
|
(15.0 |
)% |
|
14.2 |
% |
|
16.4 |
% |
Supplemental Ratio: |
|
|
|
|
|
|
|
|
|
|||||||
Store operating expenses as a % of company-operated store revenues |
|
|
|
51.2 |
% |
|
49.7 |
% |
Channel Development |
|
|
|
|
|
|
|
|
|
|||||||
Sep 29,
|
|
Oct 1,
|
|
%
|
|
Sep 29,
|
|
Oct 1,
|
||||||||
Quarter Ended |
|
|
|
|
|
|
As a % of
|
|||||||||
Net revenues |
$ |
465.4 |
|
$ |
486.1 |
|
(4.3 |
)% |
|
|
|
|
||||
Product and distribution costs |
|
286.1 |
|
|
|
317.3 |
|
|
(9.8 |
) |
|
61.5 |
% |
|
65.3 |
% |
Other operating expenses |
|
15.3 |
|
|
|
14.0 |
|
|
9.3 |
|
|
3.3 |
|
|
2.9 |
|
Depreciation and amortization expenses |
|
— |
|
|
|
0.0 |
|
|
nm |
|
— |
|
|
0.0 |
|
|
General and administrative expenses |
|
2.0 |
|
|
|
2.3 |
|
|
(13.0 |
) |
|
0.4 |
|
|
0.5 |
|
Total operating expenses |
|
303.4 |
|
|
|
333.6 |
|
|
(9.1 |
) |
|
65.2 |
|
|
68.6 |
|
Income from equity investees |
|
102.7 |
|
|
|
118.7 |
|
|
(13.5 |
) |
|
22.1 |
|
|
24.4 |
|
Operating income |
$ |
264.7 |
|
|
$ |
271.2 |
|
|
(2.4 |
)% |
|
56.9 |
% |
|
55.8 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||
Year Ended |
|
|
|
|
|
|
|
|
|
|||||||
Net revenues |
$ |
1,769.8 |
|
|
$ |
1,893.8 |
|
|
(6.5 |
)% |
|
|
|
|
||
Product and distribution costs |
|
1,075.4 |
|
|
|
1,250.1 |
|
|
(14.0 |
) |
|
60.8 |
% |
|
66.0 |
% |
Other operating expenses |
|
58.4 |
|
|
|
54.6 |
|
|
7.0 |
|
|
3.3 |
|
|
2.9 |
|
Depreciation and amortization expenses |
|
0.0 |
|
|
|
0.1 |
|
|
nm |
|
0.0 |
|
|
0.0 |
|
|
General and administrative expenses |
|
7.7 |
|
|
|
8.4 |
|
|
(8.3 |
) |
|
0.4 |
|
|
0.4 |
|
Total operating expenses |
|
1,141.5 |
|
|
|
1,313.2 |
|
|
(13.1 |
) |
|
64.5 |
|
|
69.3 |
|
Income from equity investees |
|
297.6 |
|
|
|
295.7 |
|
|
0.6 |
|
|
16.8 |
|
|
15.6 |
|
Gain from sale of assets |
|
— |
|
|
|
91.3 |
|
|
nm |
|
— |
|
|
4.8 |
|
|
Operating income |
$ |
925.9 |
|
|
$ |
967.6 |
|
|
(4.3 |
)% |
|
52.3 |
% |
|
51.1 |
% |
Corporate and Other |
||||||||||
|
Sep 29,
|
|
Oct 1,
|
|
%
|
|||||
Quarter Ended |
|
|
|
|
|
|||||
Net revenues |
$ |
23.5 |
|
|
$ |
7.6 |
|
|
209.2 |
% |
Product and distribution costs |
|
18.1 |
|
|
|
5.4 |
|
|
235.2 |
|
Other operating expenses |
|
0.1 |
|
|
|
0.1 |
|
|
0.0 |
|
Depreciation and amortization expenses |
|
29.5 |
|
|
|
30.5 |
|
|
(3.3 |
) |
General and administrative expenses |
|
470.0 |
|
|
|
439.3 |
|
|
7.0 |
|
Total operating expenses |
|
517.7 |
|
|
|
475.3 |
|
|
8.9 |
|
Operating loss |
$ |
(494.2 |
) |
|
$ |
(467.7 |
) |
|
5.7 |
% |
|
|
|
|
|
|
|||||
Year Ended |
|
|
|
|
|
|||||
Net revenues |
$ |
58.0 |
|
|
$ |
24.6 |
|
|
135.8 |
% |
Product and distribution costs |
|
52.0 |
|
|
|
20.2 |
|
|
157.4 |
|
Other operating expenses |
|
1.2 |
|
|
|
2.0 |
|
|
(40.0 |
) |
Depreciation and amortization expenses |
|
121.9 |
|
|
|
117.3 |
|
|
3.9 |
|
General and administrative expenses |
|
1,801.0 |
|
|
|
1,707.4 |
|
|
5.5 |
|
Restructuring and impairments |
|
— |
|
|
|
1.1 |
|
|
nm |
|
Total operating expenses |
|
1,976.1 |
|
|
|
1,848.0 |
|
|
6.9 |
|
Operating loss |
$ |
(1,918.1 |
) |
|
$ |
(1,823.4 |
) |
|
5.2 |
% |
STARBUCKS CORPORATION |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(unaudited, in millions, except per share data) |
|||||||
|
Sep 29,
|
|
Oct 1,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
3,286.2 |
|
|
$ |
3,551.5 |
|
Short-term investments |
|
257.0 |
|
|
|
401.5 |
|
Accounts receivable, net |
|
1,213.8 |
|
|
|
1,184.1 |
|
Inventories |
|
1,777.3 |
|
|
|
1,806.4 |
|
Prepaid expenses and other current assets |
|
313.1 |
|
|
|
359.9 |
|
Total current assets |
|
6,847.4 |
|
|
|
7,303.4 |
|
Long-term investments |
|
276.0 |
|
|
|
247.4 |
|
Equity investments |
|
463.9 |
|
|
|
439.9 |
|
Property, plant and equipment, net |
|
8,665.5 |
|
|
|
7,387.1 |
|
Operating lease, right-of-use asset |
|
9,286.2 |
|
|
|
8,412.6 |
|
Deferred income taxes, net |
|
1,766.7 |
|
|
|
1,769.8 |
|
Other long-term assets |
|
617.0 |
|
|
|
546.5 |
|
Other intangible assets |
|
100.9 |
|
|
|
120.5 |
|
Goodwill |
|
3,315.7 |
|
|
|
3,218.3 |
|
TOTAL ASSETS |
$ |
31,339.3 |
|
|
$ |
29,445.5 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,595.5 |
|
|
$ |
1,544.3 |
|
Accrued liabilities |
|
2,194.7 |
|
|
|
2,145.1 |
|
Accrued payroll and benefits |
|
786.6 |
|
|
|
828.3 |
|
Current portion of operating lease liability |
|
1,463.1 |
|
|
|
1,275.3 |
|
Stored value card liability and current portion of deferred revenue |
|
1,781.2 |
|
|
|
1,700.2 |
|
Short-term debt |
|
— |
|
|
|
33.5 |
|
Current portion of long-term debt |
|
1,248.9 |
|
|
|
1,818.6 |
|
Total current liabilities |
|
9,070.0 |
|
|
|
9,345.3 |
|
Long-term debt |
|
14,319.5 |
|
|
|
13,547.6 |
|
Operating lease liability |
|
8,771.6 |
|
|
|
7,924.8 |
|
Deferred revenue |
|
5,963.6 |
|
|
|
6,101.8 |
|
Other long-term liabilities |
|
656.2 |
|
|
|
513.8 |
|
Total liabilities |
|
38,780.9 |
|
|
|
37,433.3 |
|
Shareholders’ deficit: |
|
|
|
||||
Common stock ( |
|
1.1 |
|
|
|
1.1 |
|
Additional paid-in capital |
|
322.6 |
|
|
|
38.1 |
|
Retained deficit |
|
(7,343.8 |
) |
|
|
(7,255.8 |
) |
Accumulated other comprehensive income/(loss) |
|
(428.8 |
) |
|
|
(778.2 |
) |
Total shareholders’ deficit |
|
(7,448.9 |
) |
|
|
(7,994.8 |
) |
Noncontrolling interests |
|
7.3 |
|
|
|
7.0 |
|
Total deficit |
|
(7,441.6 |
) |
|
|
(7,987.8 |
) |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT) |
$ |
31,339.3 |
|
|
$ |
29,445.5 |
|
STARBUCKS CORPORATION |
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
(unaudited, in millions) |
|||||||||||
|
Year Ended |
||||||||||
|
Sep 29,
|
|
Oct 1,
|
|
Oct 2,
|
||||||
OPERATING ACTIVITIES: |
|
|
|
|
|
||||||
Net earnings including noncontrolling interests |
$ |
3,762.3 |
|
|
$ |
4,124.7 |
|
|
$ |
3,283.4 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
||||||
Depreciation and amortization |
|
1,592.4 |
|
|
|
1,450.3 |
|
|
|
1,529.4 |
|
Deferred income taxes, net |
|
(13.8 |
) |
|
|
(59.4 |
) |
|
|
(37.8 |
) |
Income earned from equity method investees |
|
(306.4 |
) |
|
|
(301.8 |
) |
|
|
(268.7 |
) |
Distributions received from equity method investees |
|
333.3 |
|
|
|
222.8 |
|
|
|
231.2 |
|
Gain on sale of assets |
|
— |
|
|
|
(91.3 |
) |
|
|
— |
|
Stock-based compensation |
|
308.3 |
|
|
|
302.7 |
|
|
|
271.5 |
|
Non-cash lease costs |
|
1,314.9 |
|
|
|
1,365.9 |
|
|
|
1,497.7 |
|
Loss on retirement and impairment of assets |
|
121.5 |
|
|
|
101.4 |
|
|
|
91.4 |
|
Other |
|
31.9 |
|
|
|
26.8 |
|
|
|
(67.8 |
) |
Cash provided by/(used in) changes in operating assets and liabilities: |
|
|
|
|
|
||||||
Accounts receivable |
|
18.4 |
|
|
|
(4.1 |
) |
|
|
(326.1 |
) |
Inventories |
|
42.8 |
|
|
|
366.4 |
|
|
|
(641.0 |
) |
Income taxes payable |
|
(61.9 |
) |
|
|
52.5 |
|
|
|
(149.6 |
) |
Accounts payable |
|
28.0 |
|
|
|
100.1 |
|
|
|
345.5 |
|
Deferred revenue |
|
(72.2 |
) |
|
|
(110.8 |
) |
|
|
(75.8 |
) |
Operating lease liability |
|
(1,294.9 |
) |
|
|
(1,443.8 |
) |
|
|
(1,625.6 |
) |
Other operating assets and liabilities |
|
291.0 |
|
|
|
(93.7 |
) |
|
|
339.6 |
|
Net cash provided by operating activities |
|
6,095.6 |
|
|
|
6,008.7 |
|
|
|
4,397.3 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
||||||
Purchases of investments |
|
(627.5 |
) |
|
|
(610.5 |
) |
|
|
(377.9 |
) |
Sales of investments |
|
10.3 |
|
|
|
2.5 |
|
|
|
72.6 |
|
Maturities and calls of investments |
|
768.2 |
|
|
|
616.9 |
|
|
|
67.3 |
|
Additions to property, plant and equipment |
|
(2,777.5 |
) |
|
|
(2,333.6 |
) |
|
|
(1,841.3 |
) |
Proceeds from sale of assets |
|
— |
|
|
|
110.0 |
|
|
|
— |
|
Net proceeds from the divestiture of certain operations |
|
— |
|
|
|
— |
|
|
|
59.3 |
|
Other |
|
(72.7 |
) |
|
|
(56.1 |
) |
|
|
(126.3 |
) |
Net cash used in investing activities |
|
(2,699.2 |
) |
|
|
(2,270.8 |
) |
|
|
(2,146.3 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
||||||
Net (payments)/proceeds from issuance of commercial paper |
|
— |
|
|
|
(175.0 |
) |
|
|
175.0 |
|
Net proceeds from issuance of short-term debt |
|
123.8 |
|
|
|
114.6 |
|
|
|
36.6 |
|
Repayments of short-term debt |
|
(157.5 |
) |
|
|
(78.8 |
) |
|
|
(36.6 |
) |
Net proceeds from issuance of long-term debt |
|
1,995.3 |
|
|
|
1,497.8 |
|
|
|
1,498.1 |
|
Repayments of long-term debt |
|
(1,825.1 |
) |
|
|
(1,000.0 |
) |
|
|
(1,000.0 |
) |
Proceeds from issuance of common stock |
|
108.0 |
|
|
|
167.4 |
|
|
|
101.6 |
|
Cash dividends paid |
|
(2,585.0 |
) |
|
|
(2,431.8 |
) |
|
|
(2,263.3 |
) |
Repurchase of common stock |
|
(1,266.7 |
) |
|
|
(984.4 |
) |
|
|
(4,013.0 |
) |
Minimum tax withholdings on share-based awards |
|
(100.4 |
) |
|
|
(89.3 |
) |
|
|
(127.2 |
) |
Other |
|
(10.6 |
) |
|
|
(11.1 |
) |
|
|
(9.2 |
) |
Net cash used in financing activities |
|
(3,718.2 |
) |
|
|
(2,990.6 |
) |
|
|
(5,638.0 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
56.5 |
|
|
|
(14.2 |
) |
|
|
(250.3 |
) |
Net increase/(decrease) in cash and cash equivalents |
|
(265.3 |
) |
|
|
733.1 |
|
|
|
(3,637.3 |
) |
CASH AND CASH EQUIVALENTS: |
|
|
|
|
|
||||||
Beginning of period |
|
3,551.5 |
|
|
|
2,818.4 |
|
|
|
6,455.7 |
|
End of period |
$ |
3,286.2 |
|
|
$ |
3,551.5 |
|
|
$ |
2,818.4 |
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
||||||
Cash paid during the period for: |
|
|
|
|
|
||||||
Interest, net of capitalized interest |
$ |
570.7 |
|
|
$ |
524.3 |
|
|
$ |
474.7 |
|
Income taxes |
$ |
1,373.3 |
|
|
$ |
1,294.2 |
|
|
$ |
1,157.6 |
|
Supplemental Information
The following supplemental information is provided for historical and comparative purposes.
|
Quarter Ended |
|
|
||
($ in millions) |
Sep 29, 2024 |
|
Oct 1, 2023 |
|
Change (%) |
Revenues |
|
|
|
|
(3)% |
Change in Comparable Store Sales (1) |
(6)% |
|
|
|
|
Change in Transactions |
(10)% |
|
|
|
|
Change in Ticket |
|
|
|
|
|
Store Count |
16,941 |
|
16,352 |
|
|
(1) |
Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude Siren Retail stores. Stores that are temporarily closed or operating at reduced hours remain in comparable store sales while stores identified for permanent closure have been removed. |
China Supplemental Data
|
Quarter Ended |
|
|
||
($ in millions) |
Sep 29, 2024 |
|
Oct 1, 2023 |
|
Change (%) |
Revenues |
|
|
|
|
(7)% |
Change in Comparable Store Sales (1) |
(14)% |
|
|
|
|
Change in Transactions |
(6)% |
|
|
|
|
Change in Ticket |
(8)% |
|
(3)% |
|
|
Store Count |
7,596 |
|
6,806 |
|
|
(1) |
Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours remain in comparable store sales while stores identified for permanent closure have been removed. |
Store Data
|
Net stores opened/(closed) and transferred during the period |
|
|
|
|
||||||||||||
|
Quarter Ended |
|
Year Ended |
|
Stores open as of |
||||||||||||
|
Sep 29,
|
|
Oct 1,
|
|
Sep 29,
|
|
Oct 1,
|
|
Sep 29,
|
|
Oct 1,
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores |
221 |
|
176 |
|
533 |
|
412 |
|
11,161 |
|
10,628 |
||||||
Licensed stores |
5 |
|
|
42 |
|
|
81 |
|
|
103 |
|
|
7,263 |
|
|
7,182 |
|
Total |
226 |
|
|
218 |
|
|
614 |
|
|
515 |
|
|
18,424 |
|
|
17,810 |
|
International: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Company-operated stores |
331 |
|
|
384 |
|
|
893 |
|
|
927 |
|
|
9,857 |
|
|
8,964 |
|
Licensed stores |
165 |
|
|
214 |
|
|
654 |
|
|
885 |
|
|
11,918 |
|
|
11,264 |
|
Total International |
496 |
|
|
598 |
|
|
1,547 |
|
|
1,812 |
|
|
21,775 |
|
|
20,228 |
|
Total Company |
722 |
|
|
816 |
|
|
2,161 |
|
|
2,327 |
|
|
40,199 |
|
|
38,038 |
|
Non-GAAP Disclosure
In addition to the GAAP results provided in this release, the company provides certain non-GAAP financial measures that are not in accordance with, or alternatives for, generally accepted accounting principles in
Non-GAAP Exclusion |
Rationale |
|
Restructuring and impairment costs |
Management excludes restructuring and impairment costs for reasons discussed above. These expenses are anticipated to be completed within a finite period of time. |
|
Transaction and integration-related costs |
Management excludes transaction and integration costs for reasons discussed above. Additionally, we incur certain costs associated with certain divestiture activities. The majority of these costs will be recognized over a finite period of time. |
|
Gain on sale of assets |
Management excludes the gain related to the sale of assets to Nestlé, primarily consisting of intellectual properties associated with the |
The Company also presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present the constant currency information, current period results for entities reporting in currencies other than
Non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth (loss), non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP earnings per share and constant currency may have limitations as analytical tools. 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 |
|||
NET REVENUE CONSTANT CURRENCY RECONCILIATION |
|||
(unaudited, in millions) |
|||
|
Quarter Ended |
||
|
Consolidated |
||
Revenue for the quarter ended Oct 1, 2023 as reported (GAAP) |
$ |
9,373.6 |
|
Revenue for the quarter ended Sep 29, 2024 as reported (GAAP) |
$ |
9,074.0 |
|
Change (%) |
|
(3.2 |
)% |
Constant Currency Impact (%) |
|
0.3 |
% |
Change in Constant Currency (%) |
|
(2.9 |
)% |
|
Year Ended |
||
|
Consolidated |
||
Revenue for the year ended Oct 1, 2023 as reported (GAAP) |
$ |
35,975.6 |
|
Revenue for the year ended Sep 29, 2024 as reported (GAAP) |
$ |
36,176.2 |
|
Change (%) |
|
0.6 |
% |
Constant Currency Impact (%) |
|
0.7 |
% |
Change in Constant Currency (%) |
|
1.3 |
% |
STARBUCKS CORPORATION |
|||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES |
|||||||||||||
(unaudited, in millions, except per share data) |
|||||||||||||
|
Quarter Ended |
|
|
|
|
||||||||
Consolidated |
Sep 29,
|
|
Oct 1,
|
|
Change |
|
Constant
|
|
Change in
|
||||
Operating income, as reported (GAAP) |
$ |
1,306.9 |
|
|
$ |
1,706.2 |
|
|
(23.4)% |
|
|
|
|
Non-GAAP operating income |
$ |
1,306.9 |
|
|
$ |
1,706.2 |
|
|
(23.4)% |
|
|
|
(22.6)% |
|
|
|
|
|
|
|
|
|
|
||||
Operating margin, as reported (GAAP) |
|
14.4 |
% |
|
|
18.2 |
% |
|
(380) bps |
|
|
|
|
Non-GAAP operating margin |
|
14.4 |
% |
|
|
18.2 |
% |
|
(380) bps |
|
10 bps |
|
(370) bps |
|
|
|
|
|
|
|
|
|
|
||||
Diluted net earnings per share, as reported (GAAP) |
$ |
0.80 |
|
|
$ |
1.06 |
|
|
(24.5)% |
|
|
|
|
Non-GAAP EPS |
$ |
0.80 |
|
|
$ |
1.06 |
|
|
(24.5)% |
|
|
|
(23.6)% |
|
Year Ended |
|
|
|
|
||||||||
Consolidated |
Sep 29,
|
|
Oct 1,
|
|
Change |
|
Constant
|
|
Change in
|
||||
Operating income, as reported (GAAP) |
$ |
5,408.8 |
|
|
$ |
5,870.8 |
|
|
(7.9)% |
|
|
|
|
Restructuring and impairment costs (1) |
|
— |
|
|
|
21.8 |
|
|
|
|
|
|
|
Transaction and integration-related costs (2) |
|
— |
|
|
|
0.1 |
|
|
|
|
|
|
|
Gain on sale of assets |
|
— |
|
|
|
(91.3 |
) |
|
|
|
|
|
|
Non-GAAP operating income |
$ |
5,408.8 |
|
|
$ |
5,801.4 |
|
|
(6.8)% |
|
|
|
(5.7)% |
|
|
|
|
|
|
|
|
|
|
||||
Operating margin, as reported (GAAP) |
|
15.0 |
% |
|
|
16.3 |
% |
|
(130) bps |
|
|
|
|
Restructuring and impairment costs (1) |
|
— |
|
|
|
0.1 |
|
|
|
|
|
|
|
Transaction and integration-related costs (2) |
|
— |
|
|
|
0.0 |
|
|
|
|
|
|
|
Gain on sales of assets |
|
— |
|
|
|
(0.3 |
) |
|
|
|
|
|
|
Non-GAAP operating margin |
|
15.0 |
% |
|
|
16.1 |
% |
|
(110) bps |
|
— bps |
|
(110) bps |
|
|
|
|
|
|
|
|
|
|
||||
Diluted net earnings per share, as reported (GAAP) |
$ |
3.31 |
|
|
$ |
3.58 |
|
|
(7.5)% |
|
|
|
|
Restructuring and impairment costs (1) |
|
— |
|
|
|
0.02 |
|
|
|
|
|
|
|
Transaction and integration-related costs (2) |
|
— |
|
|
|
0.00 |
|
|
|
|
|
|
|
Gain on sale of assets |
|
— |
|
|
|
(0.08 |
) |
|
|
|
|
|
|
Income tax effect on Non-GAAP adjustments (3) |
|
— |
|
|
|
0.02 |
|
|
|
|
|
|
|
Non-GAAP EPS |
$ |
3.31 |
|
|
$ |
3.54 |
|
|
(6.5)% |
|
|
|
(5.6)% |
(1) |
Represents costs associated with our restructuring efforts. |
|
(2) |
Fiscal 2023 includes transaction-related expenses related to the sale of our |
|
(3) |
Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030463090/en/
Starbucks Contact, Investor Relations:
Tiffany Willis
investorrelations@starbucks.com
Starbucks Contact, Media:
Emily Albright
press@starbucks.com
Source: Starbucks Corporation
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