Washington | 0-20322 | 91-1325671 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
2401 Utah Avenue South, Seattle, Washington 98134 |
(Address of principal executive offices) |
(206) 447-1575 |
(Registrant’s telephone number, including area code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description | |
99.1 | Earnings release of Starbucks Corporation dated January 24, 2013 |
STARBUCKS CORPORATION | |||
Dated: January 24, 2013 | |||
By: | /s/ Troy Alstead | ||
Troy Alstead | |||
chief financial officer and chief administrative officer |
Exhibit No. | Description | |
99.1 | Earnings release of Starbucks Corporation dated January 24, 2013 |
• | Global comparable store sales grew 6%, driven by a 4% increase in traffic and a 2% increase in average ticket |
◦ | Americas comparable store sales grew 7%, China/Asia Pacific comparable store sales grew 11% |
• | Consolidated operating margin expanded 40 basis points to 16.6% |
• | EPS increased 14% to a record $0.57 per share, compared to $0.50 per share in Q1 FY12 |
• | Opened 212 net new stores globally, including the first 3 stores in India |
• | Sold more than 150,000 Verismo® machines since launch, marking a strong debut of this emerging platform |
• | Added 1.4 million new My Starbucks Rewards members in the U.S., up 86% over the 778,000 new members added in the U.S. in Q1 FY12 |
• | Acquired Teavana Holdings, Inc. on December 31, making Teavana a wholly-owned subsidiary of Starbucks and positioning Starbucks to become the global leader in tea |
Quarter Ended Dec 30, 2012 | |||||
Comparable Store Sales(1) | Sales Growth | Change in Transactions | Change in Ticket | ||
Consolidated | 6% | 4% | 2% | ||
Americas | 7% | 4% | 2% | ||
EMEA | (1)% | 2% | (3)% | ||
CAP | 11% | 8% | 3% | ||
(1) Includes only Starbucks company-operated stores open 13 months or longer. |
Operating Results | Quarter Ended | ||||
($ in millions, except per share amounts) | Dec 30, 2012 | Jan 1, 2012 | Change | ||
Net New Stores | 212 | 241 | (29) | ||
Revenues | $3,799.6 | $3,435.9 | 11% | ||
Operating Income | $630.6 | $556.0 | 13% | ||
Operating Margin | 16.6% | 16.2% | 40 bps | ||
EPS | $0.57 | $0.50 | 14% |
Quarter Ended | |||||
($ in millions) | Dec 30, 2012 | Jan 1, 2012 | Change | ||
Net New Stores | 80 | 95 | (15) | ||
Revenues | $2,840.7 | $2,578.6 | 10% | ||
Operating Income | $590.3 | $548.9 | 8% | ||
Operating Margin | 20.8% | 21.3% | (50) bps |
Quarter Ended | |||||
($ in millions) | Dec 30, 2012 | Jan 1, 2012 | Change | ||
Net New Stores | 7 | 25 | (18) | ||
Revenues | $306.1 | $303.0 | 1% | ||
Operating Income | $22.3 | $18.9 | 18% | ||
Operating Margin | 7.3% | 6.2% | 110 bps |
Quarter Ended | |||||
($ in millions) | Dec 30, 2012 | Jan 1, 2012 | Change | ||
Net New Stores | 125 | 121 | 4 | ||
Revenues | $214.1 | $166.9 | 28% | ||
Operating Income | $72.1 | $57.3 | 26% | ||
Operating Margin | 33.7% | 34.3% | (60) bps |
Quarter Ended | |||||
($ in millions) | Dec 30, 2012 | Jan 1, 2012 | Change | ||
Revenues | $379.8 | $335.8 | 13% | ||
Operating Income | $96.8 | $77.9 | 24% | ||
Operating Margin | 25.5% | 23.2% | 230 bps |
• | The opening of approximately 1,300 net new stores globally, representing 22% growth over fiscal 2012. |
◦ | Approximately 600 net new stores in the Americas, with the majority of those in the U.S. Of the approximately 600 stores, approximately half of the additions will be licensed stores. |
◦ | Approximately 600 net new stores in China/Asia Pacific, with licensed stores comprising approximately half of the new additions. Of the approximately 600 stores, slightly more than half will be in China. |
◦ | Approximately 100 net new stores in EMEA (Europe, Middle East, Russia and Africa), with licensed stores comprising more than two thirds of the new stores. |
• | Revenue growth of approximately 10% - 13%, driven by mid-single-digit comparable store sales growth, approximately 1,300 net new store openings, and continued strong growth in the Channel Development business. |
• | Full-year consolidated operating margin improvement of approximately 100 basis points over FY12 results. |
◦ | Slight operating margin improvement in the Americas and EMEA segments. |
◦ | Some operating margin contraction in China/Asia Pacific, driven by the shift in equity mix towards company-operated stores as well as costs associated with accelerated store growth in China. |
◦ | 100 to 150 basis points of operating margin improvement in Channel Development. |
• | Earnings per share of $2.06 to $2.15, representing growth in the range of 15% - 20%. |
• | Capital expenditures of approximately $1.2 billion for the full year, reflecting the increase in new store growth and an increase in production capacity to support recently-announced initiatives. |
• | The company opened its 100th store in Beijing, continuing its aggressive, profitable growth strategy in China. |
• | Starbucks expanded its long-term relationship with Maxim's Group to now operate Starbucks stores in Vietnam, with the first store scheduled to open in Ho Chi Minh City in early February 2013. |
• | In partnership with Tata Global Beverages Limited, Starbucks opened its first three stores in Mumbai, India, in Q1. The first store in Delhi is scheduled to open next month. |
• | The company opened its 6th, and first Asia-based, Farmer Support Center in Yunnan Province, China, allowing the company to work directly with farmers to help reduce the environmental impact of the region's coffee-growing activities and improve the livelihood of farmers and their families. |
• | Approximately 7,000 company-operated Starbucks locations began accepting Square's mobile payment application, Square Wallet, giving customers another way to enjoy a quick, seamless payment. |
• | For the 15th year, Starbucks was named one of FORTUNE magazine's “100 Best Companies to Work For.” |
• | Starbucks acquired Teavana Holdings, Inc., making Teavana a wholly-owned subsidiary of Starbucks and the newest addition to Starbucks emerging brands portfolio, which also includes Evolution Fresh, Seattle's Best Coffee and Tazo. |
• | As part of its strategy to reinvent and elevate tea, the company opened its first Tazo® tea store in Seattle's University Village shopping center, to serve as a learning laboratory for beverage innovation. |
• | The Board of Directors declared a cash dividend of $0.21 per share, payable on February 22, 2013, to shareholders of record as of February 7, 2013. |
• | The company repurchased 8 million shares of common stock in Q1 FY13; approximately 29 million shares remain available for purchase under previous authorizations. |
Starbucks Contact, Investor Relations: | Starbucks Contact, Media: | |
JoAnn DeGrande / Greg Smith | Zack Hutson | |
206-318-7118 | 206-318-7100 | |
investorrelations@starbucks.com | press@starbucks.com |
Quarter Ended | Quarter Ended | ||||||||||||||||
Fiscal Year Ended | Dec 30, 2012 | Jan 1, 2012 | % Change | Dec 30, 2012 | Jan 1, 2012 | ||||||||||||
As a % of total net revenues | |||||||||||||||||
Net revenues: | |||||||||||||||||
Company-operated stores | $ | 2,989.6 | $ | 2,731.8 | 9.4 | % | 78.7 | % | 79.5 | % | |||||||
Licensed stores | 350.2 | 306.6 | 14.2 | 9.2 | 8.9 | ||||||||||||
CPG, foodservice and other | 459.8 | 397.5 | 15.7 | 12.1 | 11.6 | ||||||||||||
Total net revenues | 3,799.6 | 3,435.9 | 10.6 | 100.0 | 100.0 | ||||||||||||
Cost of sales including occupancy costs | 1,620.7 | 1,496.1 | 8.3 | 42.7 | 43.5 | ||||||||||||
Store operating expenses | 1,089.5 | 995.7 | 9.4 | 28.7 | 29.0 | ||||||||||||
Other operating expenses | 132.5 | 106.7 | 24.2 | 3.5 | 3.1 | ||||||||||||
Depreciation and amortization expenses | 148.9 | 134.8 | 10.5 | 3.9 | 3.9 | ||||||||||||
General and administrative expenses | 231.9 | 191.5 | 21.1 | 6.1 | 5.6 | ||||||||||||
Total Operating Expenses | 3,223.5 | 2,924.8 | 10.2 | 84.8 | 85.1 | ||||||||||||
Income from equity investees | 54.5 | 44.9 | 21.4 | 1.4 | 1.3 | ||||||||||||
Operating income | 630.6 | 556.0 | 13.4 | 16.6 | 16.2 | ||||||||||||
Interest income and other, net | (2.9 | ) | 23.2 | nm | (0.1 | ) | 0.7 | ||||||||||
Interest expense | (6.6 | ) | (8.6 | ) | (23.3 | ) | (0.2 | ) | (0.3 | ) | |||||||
Earnings before income taxes | 621.1 | 570.6 | 8.9 | 16.3 | 16.6 | ||||||||||||
Income taxes | 188.7 | 188.4 | 0.2 | 5.0 | 5.5 | ||||||||||||
Net earnings including noncontrolling interest | 432.4 | 382.2 | 13.1 | 11.4 | 11.1 | ||||||||||||
Net earnings attributable to noncontrolling interest | 0.2 | 0.1 | 100.0 | — | — | ||||||||||||
Net earnings attributable to Starbucks | $ | 432.2 | $ | 382.1 | 13.1 | % | 11.4 | % | 11.1 | % | |||||||
Net earnings per common share - diluted | $ | 0.57 | $ | 0.50 | 14.0 | % | |||||||||||
Weighted avg. shares outstanding - diluted | 761.3 | 768.5 | |||||||||||||||
Cash dividends declared per share | $ | 0.21 | $ | 0.17 | |||||||||||||
Supplemental Ratios: | |||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 36.4 | % | 36.4 | % | |||||||||||||
Effective tax rate including noncontrolling interest | 30.4 | % | 33.0 | % |
Dec 30, 2012 | Jan 1, 2012 | % Change | Dec 30, 2012 | Jan 1, 2012 | |||||||||||||
Quarter Ended | As a % of Americas total net revenues | ||||||||||||||||
Net revenues: | |||||||||||||||||
Company-operated stores | $ | 2,586.4 | $ | 2,356.2 | 9.8 | % | 91.0 | % | 91.4 | % | |||||||
Licensed stores | 239.2 | 216.4 | 10.5 | 8.4 | 8.4 | ||||||||||||
CPG, foodservice and other | 15.1 | 6.0 | 151.7 | 0.5 | 0.2 | ||||||||||||
Total net revenues | 2,840.7 | 2,578.6 | 10.2 | 100.0 | 100.0 | ||||||||||||
Cost of sales including occupancy costs | 1,092.5 | 1,006.7 | 8.5 | 38.5 | 39.0 | ||||||||||||
Store operating expenses | 959.8 | 874.8 | 9.7 | 33.8 | 33.9 | ||||||||||||
Other operating expenses | 30.0 | 20.5 | 46.3 | 1.1 | 0.8 | ||||||||||||
Depreciation and amortization expenses | 105.4 | 97.1 | 8.5 | 3.7 | 3.8 | ||||||||||||
General and administrative expenses | 62.7 | 30.6 | 104.9 | 2.2 | 1.2 | ||||||||||||
Total Operating Expenses | 2,250.4 | 2,029.7 | 10.9 | 79.2 | 78.7 | ||||||||||||
Operating income | $ | 590.3 | $ | 548.9 | 7.5 | % | 20.8 | % | 21.3 | % | |||||||
Supplemental Ratios: | |||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 37.1 | % | 37.1 | % |
Dec 30, 2012 | Jan 1, 2012 | % Change | Dec 30, 2012 | Jan 1, 2012 | |||||||||||||
Quarter Ended | As a % of EMEA total net revenues | ||||||||||||||||
Net revenues: | |||||||||||||||||
Company-operated stores | $ | 252.7 | $ | 264.3 | (4.4 | )% | 82.6 | % | 87.2 | % | |||||||
Licensed stores | 43.9 | 31.2 | 40.7 | 14.3 | 10.3 | ||||||||||||
CPG, foodservice and other | 9.5 | 7.5 | 26.7 | 3.1 | 2.5 | ||||||||||||
Total net revenues | 306.1 | 303.0 | 1.0 | 100.0 | 100.0 | ||||||||||||
Cost of sales including occupancy costs | 152.5 | 150.4 | 1.4 | 49.8 | 49.6 | ||||||||||||
Store operating expenses | 90.3 | 93.8 | (3.7 | ) | 29.5 | 31.0 | |||||||||||
Other operating expenses | 8.4 | 8.6 | (2.3 | ) | 2.7 | 2.8 | |||||||||||
Depreciation and amortization expenses | 14.2 | 14.2 | — | 4.6 | 4.7 | ||||||||||||
General and administrative expenses | 18.4 | 17.4 | 5.7 | 6.0 | 5.7 | ||||||||||||
Total Operating Expenses | 283.8 | 284.4 | (0.2 | ) | 92.7 | 93.9 | |||||||||||
Income from equity investees | — | 0.3 | (100.0 | ) | — | 0.1 | |||||||||||
Operating income | $ | 22.3 | $ | 18.9 | 18.0 | % | 7.3 | % | 6.2 | % | |||||||
Supplemental Ratios: | |||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 35.7 | % | 35.5 | % |
Dec 30, 2012 | Jan 1, 2012 | % Change | Dec 30, 2012 | Jan 1, 2012 | |||||||||||||
Quarter Ended | As a % of CAP total net revenues | ||||||||||||||||
Net revenues: | |||||||||||||||||
Company-operated stores | $ | 150.5 | $ | 111.3 | 35.2 | % | 70.3 | % | 66.7 | % | |||||||
Licensed stores | 63.6 | 55.6 | 14.4 | 29.7 | 33.3 | ||||||||||||
Total net revenues | 214.1 | 166.9 | 28.3 | 100.0 | 100.0 | ||||||||||||
Cost of sales including occupancy costs | 106.5 | 84.5 | 26.0 | 49.7 | 50.6 | ||||||||||||
Store operating expenses | 39.4 | 27.1 | 45.4 | 18.4 | 16.2 | ||||||||||||
Other operating expenses | 10.2 | 11.4 | (10.5 | ) | 4.8 | 6.8 | |||||||||||
Depreciation and amortization expenses | 7.4 | 5.0 | 48.0 | 3.5 | 3.0 | ||||||||||||
General and administrative expenses | 12.6 | 9.2 | 37.0 | 5.9 | 5.5 | ||||||||||||
Total Operating Expenses | 176.1 | 137.2 | 28.4 | 82.3 | 82.2 | ||||||||||||
Income from equity investees | 34.1 | 27.6 | 23.6 | 15.9 | 16.5 | ||||||||||||
Operating income | $ | 72.1 | $ | 57.3 | 25.8 | % | 33.7 | % | 34.3 | % | |||||||
Supplemental Ratios: | |||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 26.2 | % | 24.3 | % |
Dec 30, 2012 | Jan 1, 2012 | % Change | Dec 30, 2012 | Jan 1, 2012 | |||||||||||||
Quarter Ended | As a % of Channel Development total net revenues | ||||||||||||||||
Net revenues: | |||||||||||||||||
CPG | $ | 288.3 | $ | 247.1 | 16.7 | % | 75.9 | % | 73.6 | % | |||||||
Foodservice | 91.5 | 88.7 | 3.2 | 24.1 | 26.4 | ||||||||||||
Total net revenues | 379.8 | 335.8 | 13.1 | 100.0 | 100.0 | ||||||||||||
Cost of sales | 235.2 | 220.6 | 6.6 | 61.9 | 65.7 | ||||||||||||
Other operating expenses | 63.1 | 50.1 | 25.9 | 16.6 | 14.9 | ||||||||||||
Depreciation and amortization expenses | 0.3 | 0.4 | (25.0 | ) | 0.1 | 0.1 | |||||||||||
General and administrative expenses | 4.8 | 3.8 | 26.3 | 1.3 | 1.1 | ||||||||||||
Total Operating Expenses | 303.4 | 274.9 | 10.4 | 79.9 | 81.9 | ||||||||||||
Income from equity investees | 20.4 | 17.0 | 20.0 | 5.4 | 5.1 | ||||||||||||
Operating income | $ | 96.8 | $ | 77.9 | 24.3 | % | 25.5 | % | 23.2 | % |
Dec 30, 2012 | Jan 1, 2012 | % Change | |||||||||
Quarter Ended | |||||||||||
Net revenues: | |||||||||||
Licensed stores | $ | 3.5 | $ | 3.4 | 2.9 | % | |||||
CPG, foodservice and other | 55.4 | 48.2 | 14.9 | ||||||||
Total net revenues | 58.9 | 51.6 | 14.1 | ||||||||
Cost of sales | 34.0 | 33.9 | 0.3 | ||||||||
Other operating expenses | 20.8 | 16.1 | 29.2 | ||||||||
Depreciation and amortization expenses | 21.6 | 18.1 | 19.3 | ||||||||
General and administrative expenses | 133.4 | 130.5 | 2.2 | ||||||||
Total Operating Expenses | 209.8 | 198.6 | 5.6 | ||||||||
Operating loss | $ | (150.9 | ) | $ | (147.0 | ) | 2.7 | % |
Quarter Ended | |||||
($ in millions) | Dec 30, 2012 | Jan 1, 2012 | Change | ||
Comparable Store Sales Growth | 7% | 9% | |||
Change in Transactions | 4% | 8% | |||
Change in Ticket | 2% | 2% | |||
Revenues | $2,503.9 | $2,291.8 | 9% | ||
Operating Income | $587.9 | $522.2 | 13% | ||
Operating Margin | 23.5% | 22.8% | 70 bps |
Net stores opened (closed) during the period | |||||||||||
Quarter Ended | Stores open as of | ||||||||||
Dec 30, 2012 | Jan 1, 2012 | Dec 30, 2012 | Jan 1, 2012 | ||||||||
Americas: | |||||||||||
Company-operated | 30 | 11 | 7,887 | 7,634 | |||||||
Licensed stores | 50 | 84 | 5,096 | 4,860 | |||||||
80 | 95 | 12,983 | 12,494 | ||||||||
EMEA: | |||||||||||
Company-operated(1) | (20 | ) | 8 | 862 | 880 | ||||||
Licensed stores(1) | 27 | 17 | 1,014 | 903 | |||||||
7 | 25 | 1,876 | 1,783 | ||||||||
CAP: | |||||||||||
Company-operated | 47 | 35 | 713 | 547 | |||||||
Licensed stores | 78 | 86 | 2,706 | 2,420 | |||||||
125 | 121 | 3,419 | 2,967 | ||||||||
Total | 212 | 241 | 18,278 | 17,244 |