(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title | Trading Symbol | Name of each exchange on which registered | ||||||
Exhibit No. | Description | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL) |
STARBUCKS CORPORATION | ||||||||||||||
Dated: | October 29, 2020 | |||||||||||||
By: | /s/ Patrick J. Grismer | |||||||||||||
Patrick J. Grismer | ||||||||||||||
executive vice president, chief financial officer |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Sep 27, 2020 | Sep 29, 2019 | |||||||||||||||
Comparable Store Sales Growth (1) | (9)% | 6% | |||||||||||||||
Change in Transactions | (25)% | 3% | |||||||||||||||
Change in Ticket | 21% | 3% | |||||||||||||||
Store Count | 18,354 | 18,067 | 2% | ||||||||||||||
Revenues | $4,232.9 | $4,651.4 | (9)% | ||||||||||||||
Operating Income | $510.3 | $938.9 | (46)% | ||||||||||||||
Operating Margin | 12.1% | 20.2% | (810) bps | ||||||||||||||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 outbreak remain in comparable store sales while stores identified for permanent closure have been removed. |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Sep 27, 2020 | Sep 29, 2019 | |||||||||||||||
Comparable Store Sales Growth (1) | (10)% | 3% | |||||||||||||||
Change in Transactions | (15)% | 1% | |||||||||||||||
Change in Ticket | 7% | 3% | |||||||||||||||
Store Count | 14,306 | 13,189 | 8% | ||||||||||||||
Revenues | $1,492.3 | $1,572.1 | (5)% | ||||||||||||||
Operating Income | $179.5 | $262.7 | (32)% | ||||||||||||||
Operating Margin | 12.0% | 16.7% | (470) bps | ||||||||||||||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 outbreak remain in comparable store sales while stores identified for permanent closure have been removed. Comparable store sales include a 2% benefit related to a temporary value-added tax exemption in China. |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Sep 27, 2020 | Sep 29, 2019 | |||||||||||||||
Revenues | $464.0 | $508.1 | (9)% | ||||||||||||||
Operating Income | $197.9 | $190.9 | 4% | ||||||||||||||
Operating Margin | 42.7% | 37.6% | 510 bps |
Starbucks Contact, Investor Relations: | Starbucks Contact, Media: | |||||||
Durga Doraisamy | Reggie Borges | |||||||
206-318-7118 | 206-318-7100 | |||||||
investorrelations@starbucks.com | press@starbucks.com |
Quarter Ended | Quarter Ended | ||||||||||||||||||||||||||||
Sep 27, 2020 | Sep 29, 2019 | % Change | Sep 27, 2020 | Sep 29, 2019 | |||||||||||||||||||||||||
As a % of total net revenues | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 5,173.6 | $ | 5,480.1 | (5.6) | % | 83.4 | % | 81.2 | % | |||||||||||||||||||
Licensed stores | 544.6 | 734.7 | (25.9) | 8.8 | 10.9 | ||||||||||||||||||||||||
Other | 484.9 | 532.2 | (8.9) | 7.8 | 7.9 | ||||||||||||||||||||||||
Total net revenues | 6,203.1 | 6,747.0 | (8.1) | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs(1) | 1,976.8 | 2,139.6 | (7.6) | 31.9 | 31.7 | ||||||||||||||||||||||||
Store operating expenses | 2,683.4 | 2,709.5 | (1.0) | 43.3 | 40.2 | ||||||||||||||||||||||||
Other operating expenses | 99.9 | 91.6 | 9.1 | 1.6 | 1.4 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 362.9 | 344.7 | 5.3 | 5.9 | 5.1 | ||||||||||||||||||||||||
General and administrative expenses | 439.0 | 458.4 | (4.2) | 7.1 | 6.8 | ||||||||||||||||||||||||
Restructuring and impairments | 195.0 | 11.8 | nm | 3.1 | 0.2 | ||||||||||||||||||||||||
Total operating expenses | 5,757.0 | 5,755.6 | — | 92.8 | 85.3 | ||||||||||||||||||||||||
Income from equity investees | 112.2 | 91.9 | 22.1 | 1.8 | 1.4 | ||||||||||||||||||||||||
Operating income | 558.3 | 1,083.3 | (48.5) | 9.0 | 16.1 | ||||||||||||||||||||||||
Interest income and other, net | 9.1 | 16.4 | (44.5) | 0.1 | 0.2 | ||||||||||||||||||||||||
Interest expense | (125.0) | (95.7) | 30.6 | (2.0) | (1.4) | ||||||||||||||||||||||||
Earnings before income taxes | 442.4 | 1,004.0 | (55.9) | 7.1 | 14.9 | ||||||||||||||||||||||||
Income tax expense | 49.7 | 201.5 | (75.3) | 0.8 | 3.0 | ||||||||||||||||||||||||
Net earnings including noncontrolling interests | 392.7 | 802.5 | (51.1) | 6.3 | 11.9 | ||||||||||||||||||||||||
Net earnings/(loss) attributable to noncontrolling interests | 0.1 | (0.4) | (125.0) | — | — | ||||||||||||||||||||||||
Net earnings attributable to Starbucks | $ | 392.6 | $ | 802.9 | (51.1) | 6.3 | % | 11.9 | % | ||||||||||||||||||||
Net earnings per common share - diluted | $ | 0.33 | $ | 0.67 | (50.7) | % | |||||||||||||||||||||||
Weighted avg. shares outstanding - diluted | 1,179.0 | 1,205.6 | |||||||||||||||||||||||||||
Cash dividends declared per share(2) | $ | — | $ | 0.41 | |||||||||||||||||||||||||
Supplemental Ratios: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 51.9 | % | 49.4 | % | |||||||||||||||||||||||||
Effective tax rate including noncontrolling interests | 11.2 | % | 20.1 | % |
Year Ended | Year Ended | ||||||||||||||||||||||||||||
Sep 27, 2020 | Sep 29, 2019 | % Change | Sep 27, 2020 | Sep 29, 2019 | |||||||||||||||||||||||||
As a % of total net revenues | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 19,164.6 | $ | 21,544.4 | (11.0) | % | 81.5 | % | 81.3 | % | |||||||||||||||||||
Licensed stores | 2,327.1 | 2,875.0 | (19.1) | 9.9 | 10.8 | ||||||||||||||||||||||||
Other | 2,026.3 | 2,089.2 | (3.0) | 8.6 | 7.9 | ||||||||||||||||||||||||
Total net revenues | 23,518.0 | 26,508.6 | (11.3) | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 7,694.9 | 8,526.9 | (9.8) | 32.7 | 32.2 | ||||||||||||||||||||||||
Store operating expenses | 10,764.0 | 10,493.6 | 2.6 | 45.8 | 39.6 | ||||||||||||||||||||||||
Other operating expenses | 430.3 | 371.0 | 16.0 | 1.8 | 1.4 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 1,431.3 | 1,377.3 | 3.9 | 6.1 | 5.2 | ||||||||||||||||||||||||
General and administrative expenses | 1,679.6 | 1,824.1 | (7.9) | 7.1 | 6.9 | ||||||||||||||||||||||||
Restructuring and impairments | 278.7 | 135.8 | 105.2 | 1.2 | 0.5 | ||||||||||||||||||||||||
Total operating expenses | 22,278.8 | 22,728.7 | (2.0) | 94.7 | 85.7 | ||||||||||||||||||||||||
Income from equity investees | 322.5 | 298.0 | 8.2 | 1.4 | 1.1 | ||||||||||||||||||||||||
Operating income | 1,561.7 | 4,077.9 | (61.7) | 6.6 | 15.4 | ||||||||||||||||||||||||
Net gain resulting from divestiture of certain operations | — | 622.8 | nm | — | 2.3 | ||||||||||||||||||||||||
Interest income and other, net | 39.7 | 96.5 | (58.9) | 0.2 | 0.4 | ||||||||||||||||||||||||
Interest expense | (437.0) | (331.0) | 32.0 | (1.9) | (1.2) | ||||||||||||||||||||||||
Earnings before income taxes | 1,164.4 | 4,466.2 | (73.9) | 5.0 | 16.8 | ||||||||||||||||||||||||
Income tax expense | 239.7 | 871.6 | (72.5) | 1.0 | 3.3 | ||||||||||||||||||||||||
Net earnings including noncontrolling interests | 924.7 | 3,594.6 | (74.3) | 3.9 | 13.6 | ||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | (3.6) | (4.6) | (21.7) | — | — | ||||||||||||||||||||||||
Net earnings attributable to Starbucks | $ | 928.3 | $ | 3,599.2 | (74.2) | 3.9 | % | 13.6 | % | ||||||||||||||||||||
Net earnings per common share - diluted | $ | 0.79 | $ | 2.92 | (72.9) | % | |||||||||||||||||||||||
Weighted avg. shares outstanding - diluted | 1,181.8 | 1,233.2 | |||||||||||||||||||||||||||
Cash dividends declared per share(1) | $ | 1.23 | $ | 1.49 | |||||||||||||||||||||||||
Supplemental Ratios: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 56.2 | % | 48.7 | % | |||||||||||||||||||||||||
Effective tax rate including noncontrolling interests | 20.6 | % | 19.5 | % |
Sep 27, 2020 | Sep 29, 2019 | % Change | Sep 27, 2020 | Sep 29, 2019 | |||||||||||||||||||||||||
Quarter Ended | As a % of Americas total net revenues | ||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 3,875.3 | $ | 4,164.2 | (6.9) | % | 91.6 | % | 89.5 | % | |||||||||||||||||||
Licensed stores | 355.9 | 484.0 | (26.5) | 8.4 | 10.4 | ||||||||||||||||||||||||
Other | 1.7 | 3.2 | (46.9) | — | 0.1 | ||||||||||||||||||||||||
Total net revenues | 4,232.9 | 4,651.4 | (9.0) | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 1,169.4 | 1,278.9 | (8.6) | 27.6 | 27.5 | ||||||||||||||||||||||||
Store operating expenses | 2,060.6 | 2,112.1 | (2.4) | 48.7 | 45.4 | ||||||||||||||||||||||||
Other operating expenses | 41.8 | 34.2 | 22.2 | 1.0 | 0.7 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 190.0 | 180.6 | 5.2 | 4.5 | 3.9 | ||||||||||||||||||||||||
General and administrative expenses | 65.2 | 106.0 | (38.5) | 1.5 | 2.3 | ||||||||||||||||||||||||
Restructuring and impairments | 195.6 | 0.7 | nm | 4.6 | — | ||||||||||||||||||||||||
Total operating expenses | 3,722.6 | 3,712.5 | 0.3 | 87.9 | 79.8 | ||||||||||||||||||||||||
Operating income | $ | 510.3 | $ | 938.9 | (45.6) | % | 12.1 | % | 20.2 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 53.2 | % | 50.7 | % | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 14,778.8 | $ | 16,288.2 | (9.3) | % | 90.2 | % | 89.2 | % | |||||||||||||||||||
Licensed stores | 1,592.9 | 1,958.0 | (18.6) | 9.7 | 10.7 | ||||||||||||||||||||||||
Other | 7.5 | 12.8 | (41.4) | — | 0.1 | ||||||||||||||||||||||||
Total net revenues | 16,379.2 | 18,259.0 | (10.3) | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 4,611.5 | 5,174.7 | (10.9) | 28.2 | 28.3 | ||||||||||||||||||||||||
Store operating expenses | 8,488.0 | 8,064.8 | 5.2 | 51.8 | 44.2 | ||||||||||||||||||||||||
Other operating expenses | 166.8 | 159.8 | 4.4 | 1.0 | 0.9 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 762.0 | 696.1 | 9.5 | 4.7 | 3.8 | ||||||||||||||||||||||||
General and administrative expenses | 268.0 | 323.9 | (17.3) | 1.6 | 1.8 | ||||||||||||||||||||||||
Restructuring and impairments | 257.6 | 56.9 | 352.7 | 1.6 | 0.3 | ||||||||||||||||||||||||
Total operating expenses | 14,553.9 | 14,476.2 | 0.5 | 88.9 | 79.3 | ||||||||||||||||||||||||
Operating income | $ | 1,825.3 | $ | 3,782.8 | (51.7) | % | 11.1 | % | 20.7 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 57.4 | % | 49.5 | % | |||||||||||||||||||||||||
Sep 27, 2020 | Sep 29, 2019 | % Change | Sep 27, 2020 | Sep 29, 2019 | |||||||||||||||||||||||||
Quarter Ended | As a % of International total net revenues | ||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 1,298.3 | $ | 1,315.9 | (1.3) | % | 87.0 | % | 83.7 | % | |||||||||||||||||||
Licensed stores | 188.7 | 250.7 | (24.7) | 12.6 | 15.9 | ||||||||||||||||||||||||
Other | 5.3 | 5.5 | (3.6) | 0.4 | 0.3 | ||||||||||||||||||||||||
Total net revenues | 1,492.3 | 1,572.1 | (5.1) | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 468.0 | 486.1 | (3.7) | 31.4 | 30.9 | ||||||||||||||||||||||||
Store operating expenses | 622.8 | 597.3 | 4.3 | 41.7 | 38.0 | ||||||||||||||||||||||||
Other operating expenses | 36.2 | 31.9 | 13.5 | 2.4 | 2.0 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 133.1 | 126.5 | 5.2 | 8.9 | 8.0 | ||||||||||||||||||||||||
General and administrative expenses | 82.5 | 82.4 | 0.1 | 5.5 | 5.2 | ||||||||||||||||||||||||
Restructuring and impairments | (0.6) | 12.0 | nm | — | 0.8 | ||||||||||||||||||||||||
Total operating expenses | 1,342.0 | 1,336.2 | 0.4 | 89.9 | 85.0 | ||||||||||||||||||||||||
Income from equity investees | 29.2 | 26.8 | 9.0 | 2.0 | 1.7 | ||||||||||||||||||||||||
Operating income | $ | 179.5 | $ | 262.7 | (31.7) | % | 12.0 | % | 16.7 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 48.0 | % | 45.4 | % | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 4,385.8 | $ | 5,256.2 | (16.6) | % | 85.2 | % | 84.9 | % | |||||||||||||||||||
Licensed stores | 734.2 | 917.0 | (19.9) | 14.3 | 14.8 | ||||||||||||||||||||||||
Other | 27.6 | 17.5 | 57.7 | 0.5 | 0.3 | ||||||||||||||||||||||||
Total net revenues | 5,147.6 | 6,190.7 | (16.8) | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 1,682.0 | 1,894.9 | (11.2) | 32.7 | 30.6 | ||||||||||||||||||||||||
Store operating expenses | 2,276.0 | 2,428.5 | (6.3) | 44.2 | 39.2 | ||||||||||||||||||||||||
Other operating expenses | 141.3 | 116.4 | 21.4 | 2.7 | 1.9 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 518.4 | 511.5 | 1.3 | 10.1 | 8.3 | ||||||||||||||||||||||||
General and administrative expenses | 279.4 | 317.9 | (12.1) | 5.4 | 5.1 | ||||||||||||||||||||||||
Restructuring and impairments | (1.2) | 59.2 | nm | — | 1.0 | ||||||||||||||||||||||||
Total operating expenses | 4,895.9 | 5,328.4 | (8.1) | 95.1 | 86.1 | ||||||||||||||||||||||||
Income from equity investees | 102.3 | 102.4 | (0.1) | 2.0 | 1.7 | ||||||||||||||||||||||||
Operating income | $ | 354.0 | $ | 964.7 | (63.3) | % | 6.9 | % | 15.6 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 51.9 | % | 46.2 | % | |||||||||||||||||||||||||
Sep 27, 2020 | Sep 29, 2019 | % Change | Sep 27, 2020 | Sep 29, 2019 | |||||||||||||||||||||||||
Quarter Ended | As a % of Channel Development total net revenues | ||||||||||||||||||||||||||||
Net revenues | $ | 464.0 | $ | 508.1 | (8.7) | % | |||||||||||||||||||||||
Product and distribution costs | 327.8 | 359.1 | (8.7) | 70.6 | % | 70.7 | % | ||||||||||||||||||||||
Other operating expenses | 18.5 | 20.3 | (8.9) | 4.0 | 4.0 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 0.3 | 0.3 | — | 0.1 | 0.1 | ||||||||||||||||||||||||
General and administrative expenses | 2.5 | 2.6 | (3.8) | 0.5 | 0.5 | ||||||||||||||||||||||||
Total operating expenses | 349.1 | 382.3 | (8.7) | 75.2 | 75.2 | ||||||||||||||||||||||||
Income from equity investees | 83.0 | 65.1 | 27.5 | 17.9 | 12.8 | ||||||||||||||||||||||||
Operating income | $ | 197.9 | $ | 190.9 | 3.7 | % | 42.7 | % | 37.6 | % | |||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
Net revenues | $ | 1,925.0 | $ | 1,992.6 | (3.4) | % | |||||||||||||||||||||||
Product and distribution costs | 1,338.1 | 1,390.0 | (3.7) | 69.5 | % | 69.8 | % | ||||||||||||||||||||||
Other operating expenses | 108.2 | 76.2 | 42.0 | 5.6 | 3.8 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 1.2 | 13.0 | (90.8) | 0.1 | 0.7 | ||||||||||||||||||||||||
General and administrative expenses | 10.5 | 11.5 | (8.7) | 0.5 | 0.6 | ||||||||||||||||||||||||
Total operating expenses | 1,458.0 | 1,490.7 | (2.2) | 75.7 | 74.8 | ||||||||||||||||||||||||
Income from equity investees | 220.2 | 195.6 | 12.6 | 11.4 | 9.8 | ||||||||||||||||||||||||
Operating income | $ | 687.2 | $ | 697.5 | (1.5) | % | 35.7 | % | 35.0 | % |
Sep 27, 2020 | Sep 29, 2019 | % Change | |||||||||||||||
Quarter Ended | |||||||||||||||||
Net revenues | $ | 13.9 | $ | 15.4 | (9.7) | % | |||||||||||
Product and distribution costs | 11.6 | 15.5 | (25.2) | ||||||||||||||
Store operating expenses | — | 0.1 | nm | ||||||||||||||
Other operating expenses | 3.4 | 5.2 | (34.6) | ||||||||||||||
Depreciation and amortization expenses | 39.5 | 37.3 | 5.9 | ||||||||||||||
General and administrative expenses | 288.8 | 267.4 | 8.0 | ||||||||||||||
Restructuring and impairments | — | (0.9) | nm | ||||||||||||||
Total operating expenses | 343.3 | 324.6 | 5.8 | ||||||||||||||
Operating loss | $ | (329.4) | $ | (309.2) | 6.5 | % | |||||||||||
Year Ended | |||||||||||||||||
Net revenues | 66.2 | 66.3 | (0.2) | ||||||||||||||
Product and distribution costs | 63.3 | 67.3 | (5.9) | ||||||||||||||
Store operating expenses | — | 0.3 | nm | ||||||||||||||
Other operating expenses | 14.0 | 18.6 | (24.7) | ||||||||||||||
Depreciation and amortization expenses | 149.7 | 156.7 | (4.5) | ||||||||||||||
General and administrative expenses | 1,121.7 | 1,170.8 | (4.2) | ||||||||||||||
Restructuring and impairments | 22.3 | 19.7 | 13.2 | ||||||||||||||
Total operating expenses | 1,371.0 | 1,433.4 | (4.4) | ||||||||||||||
Operating loss | $ | (1,304.8) | $ | (1,367.1) | (4.6) | % |
Sep 27, 2020 | Sep 29, 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 4,350.9 | $ | 2,686.6 | |||||||
Short-term investments | 281.2 | 70.5 | |||||||||
Accounts receivable, net | 883.4 | 879.2 | |||||||||
Inventories | 1,551.4 | 1,529.4 | |||||||||
Prepaid expenses and other current assets | 739.5 | 488.2 | |||||||||
Total current assets | 7,806.4 | 5,653.9 | |||||||||
Long-term investments | 206.1 | 220.0 | |||||||||
Equity investments | 478.7 | 396.0 | |||||||||
Property, plant and equipment, net | 6,241.4 | 6,431.7 | |||||||||
Operating lease, right-of-use asset | 8,134.1 | — | |||||||||
Deferred income taxes, net | 1,789.9 | 1,765.8 | |||||||||
Other long-term assets | 568.6 | 479.6 | |||||||||
Other intangible assets | 552.1 | 781.8 | |||||||||
Goodwill | 3,597.2 | 3,490.8 | |||||||||
TOTAL ASSETS | $ | 29,374.5 | $ | 19,219.6 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 997.9 | $ | 1,189.7 | |||||||
Accrued liabilities | 1,160.7 | 1,753.7 | |||||||||
Accrued payroll and benefits | 696.0 | 664.6 | |||||||||
Income taxes payable | 98.2 | 1,291.7 | |||||||||
Current portion of operating lease liability | 1,248.8 | — | |||||||||
Stored value card liability and current portion of deferred revenue | 1,456.5 | 1,269.0 | |||||||||
Short-term debt | 438.8 | — | |||||||||
Current portion of long-term debt | 1,249.9 | — | |||||||||
Total current liabilities | 7,346.8 | 6,168.7 | |||||||||
Long-term debt | 14,659.6 | 11,167.0 | |||||||||
Operating lease liability | 7,661.7 | — | |||||||||
Deferred revenue | 6,598.5 | 6,744.4 | |||||||||
Other long-term liabilities | 907.3 | 1,370.5 | |||||||||
Total liabilities | 37,173.9 | 25,450.6 | |||||||||
Shareholders' deficit: | |||||||||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,173.3 and 1,184.6 shares, respectively | 1.2 | 1.2 | |||||||||
Additional paid-in capital | 373.9 | 41.1 | |||||||||
Retained deficit | (7,815.6) | (5,771.2) | |||||||||
Accumulated other comprehensive loss | (364.6) | (503.3) | |||||||||
Total shareholders’ deficit | (7,805.1) | (6,232.2) | |||||||||
Noncontrolling interests | 5.7 | 1.2 | |||||||||
Total deficit | (7,799.4) | (6,231.0) | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) | $ | 29,374.5 | $ | 19,219.6 |
Year Ended | |||||||||||||||||
Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | |||||||||||||||
OPERATING ACTIVITIES: | |||||||||||||||||
Net earnings including noncontrolling interests | $ | 924.7 | $ | 3,594.6 | $ | 4,518.0 | |||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 1,503.2 | 1,449.3 | 1,305.9 | ||||||||||||||
Deferred income taxes, net | (25.8) | (1,495.4) | 714.9 | ||||||||||||||
Income earned from equity method investees | (280.7) | (250.6) | (242.8) | ||||||||||||||
Distributions received from equity method investees | 227.7 | 216.8 | 226.8 | ||||||||||||||
Gain resulting from acquisition of joint venture | — | — | (1,376.4) | ||||||||||||||
Net gain resulting from divestiture of certain retail operations | — | (622.8) | (499.2) | ||||||||||||||
Stock-based compensation | 248.6 | 308.0 | 250.3 | ||||||||||||||
Goodwill impairments | — | 10.5 | 37.6 | ||||||||||||||
Non-cash lease costs | 1,197.6 | — | — | ||||||||||||||
Loss on retirement and impairment of assets | 454.4 | 142.6 | 75.6 | ||||||||||||||
Other | 24.5 | 45.3 | 13.4 | ||||||||||||||
Cash provided by/(used in) changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (2.7) | (197.7) | 131.0 | ||||||||||||||
Inventories | (10.9) | (173.0) | (41.2) | ||||||||||||||
Prepaid expenses and other current assets | (317.5) | 922.0 | (839.5) | ||||||||||||||
Income taxes payable | (1,214.6) | 1,237.1 | 146.0 | ||||||||||||||
Accounts payable | (210.8) | 31.9 | 391.6 | ||||||||||||||
Deferred revenue | 31.0 | (30.5) | 7,109.4 | ||||||||||||||
Operating lease liability | (1,231.4) | — | — | ||||||||||||||
Other operating assets and liabilities | 280.5 | (141.1) | 16.4 | ||||||||||||||
Net cash provided by operating activities | 1,597.8 | 5,047.0 | 11,937.8 | ||||||||||||||
INVESTING ACTIVITIES: | |||||||||||||||||
Purchases of investments | (443.9) | (190.4) | (191.9) | ||||||||||||||
Sales of investments | 186.7 | 298.3 | 459.0 | ||||||||||||||
Maturities and calls of investments | 73.7 | 59.8 | 45.3 | ||||||||||||||
Acquisitions, net of cash acquired | — | — | (1,311.3) | ||||||||||||||
Additions to property, plant and equipment | (1,483.6) | (1,806.6) | (1,976.4) | ||||||||||||||
Net proceeds from the divestiture of certain operations | — | 684.3 | 608.2 | ||||||||||||||
Other | (44.4) | (56.2) | 5.6 | ||||||||||||||
Net cash used in investing activities | (1,711.5) | (1,010.8) | (2,361.5) | ||||||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||
Proceeds from issuance of short-term debt | 1,406.6 | — | — | ||||||||||||||
Repayments of short-term debt | (967.7) | — | — | ||||||||||||||
Proceeds from issuance of long-term debt | 4,727.6 | 1,996.0 | 5,584.1 | ||||||||||||||
Repayments of long-term debt | — | (350.0) | — | ||||||||||||||
Proceeds from issuance of common stock | 298.8 | 409.8 | 153.9 | ||||||||||||||
Cash dividends paid | (1,923.5) | (1,761.3) | (1,743.4) | ||||||||||||||
Repurchase of common stock | (1,698.9) | (10,222.3) | (7,133.5) | ||||||||||||||
Minimum tax withholdings on share-based awards | (91.9) | (111.6) | (62.7) | ||||||||||||||
Other | (37.7) | (17.5) | (41.2) | ||||||||||||||
Net cash provided by/(used in) financing activities | 1,713.3 | (10,056.9) | (3,242.8) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 64.7 | (49.0) | (39.5) | ||||||||||||||
Net increase/(decrease) in cash and cash equivalents | 1,664.3 | (6,069.7) | 6,294.0 | ||||||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||
Beginning of period | 2,686.6 | 8,756.3 | 2,462.3 | ||||||||||||||
End of period | $ | 4,350.9 | $ | 2,686.6 | $ | 8,756.3 | |||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||||||||
Cash paid during the period for: | |||||||||||||||||
Interest, net of capitalized interest | $ | 396.9 | $ | 299.5 | $ | 137.1 | |||||||||||
Income taxes | $ | 1,699.1 | $ | 470.1 | $ | 1,176.9 |
Quarter Ended | |||||||||||||||||
($ in millions) | Sep 27, 2020 | Sep 29, 2019 | Change (%) | ||||||||||||||
Revenues | $3,892.9 | $4,245.9 | (8)% | ||||||||||||||
Comparable Store Sales Growth (1) | (9)% | 6% | |||||||||||||||
Change in Transactions | (25)% | 3% | |||||||||||||||
Change in Ticket | 21% | 3% | |||||||||||||||
Store Count | 15,337 | 15,049 | 2% | ||||||||||||||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. The results from Siren Retail operations are not reflected in comparable store sales. Comparable store sales include stores that were temporarily closed as a result of the COVID-19 outbreak and exclude stores identified for permanent closure. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
($ in millions) | Sep 27, 2020 | Sep 29, 2019 | Change (%) | ||||||||||||||
Revenues | $814.5 | $763.0 | 7% | ||||||||||||||
Comparable Store Sales Growth (1) | (3)% | 5% | |||||||||||||||
Change in Transactions | (7)% | 2% | |||||||||||||||
Change in Ticket | 5% | 3% | |||||||||||||||
Store Count | 4,706 | 4,125 | 14% | ||||||||||||||
(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, stores identified for permanent closure and Siren Retail stores. Comparable store sales include stores that were temporarily closed as a result of the COVID-19 outbreak, and for the fourth quarter of fiscal 2020, include a 4% benefit related to a temporary value-added tax exemption. |
Net stores opened/(closed) and transferred during the period | |||||||||||||||||||||||||||||||||||
Quarter Ended | Year Ended | Stores open as of | |||||||||||||||||||||||||||||||||
Sep 27, 2020 | Sep 29, 2019 | Sep 27, 2020 | Sep 29, 2019 | Sep 27, 2020 | Sep 29, 2019 | ||||||||||||||||||||||||||||||
Americas: | |||||||||||||||||||||||||||||||||||
Company-operated stores | 92 | 117 | 135 | 284 | 10,109 | 9,974 | |||||||||||||||||||||||||||||
Licensed stores | 27 | 97 | 152 | 323 | 8,245 | 8,093 | |||||||||||||||||||||||||||||
Total Americas | 119 | 214 | 287 | 607 | 18,354 | 18,067 | |||||||||||||||||||||||||||||
International: | |||||||||||||||||||||||||||||||||||
Company-operated stores | 274 | 214 | 668 | 209 | 6,528 | 5,860 | |||||||||||||||||||||||||||||
Licensed stores | 87 | 202 | 449 | 1,128 | 7,778 | 7,329 | |||||||||||||||||||||||||||||
Total International | 361 | 416 | 1,117 | 1,337 | 14,306 | 13,189 | |||||||||||||||||||||||||||||
Corporate and Other(1): | |||||||||||||||||||||||||||||||||||
Licensed stores | — | — | — | (12) | — | — | |||||||||||||||||||||||||||||
Total Corporate and Other | — | — | — | (12) | — | — | |||||||||||||||||||||||||||||
Total Company | 480 | 630 | 1,404 | 1,932 | 32,660 | 31,256 | |||||||||||||||||||||||||||||
(1) Corporate and Other store data includes the closure of 12 Teavana® retail stores in the first quarter of fiscal 2019. |
Non-GAAP Exclusion | Rationale | ||||
Gain on sale of certain retail operations | Management excludes the gains related to the sale of our retail operations in Thailand, France and the Netherlands as these items do not reflect future gains or tax impacts for reasons discussed above. | ||||
Restructuring and impairment costs | Management excludes restructuring and impairment costs relating to the write-down of certain company-operated stores and intangible assets. Management excludes these items 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 and amortization of the acquired intangible assets for reasons discussed above. Additionally, the majority of these costs will be recognized over a finite period of time. | ||||
2018 U.S. stock award | Management excludes the incremental stock-based compensation award granted in the third quarter of fiscal 2018, and vested in the third quarter of fiscal 2019, for reasons discussed above. | ||||
Nestlé transaction and integration-related costs | Management excludes the transaction and integration-related costs related to the Global Coffee Alliance with Nestlé (inclusive of incremental costs to grow and develop the alliance) for reasons discussed above. | ||||
Other tax matters | On December 22, 2017, the Tax Cuts and Jobs Act was signed into U.S. law. Management excludes the estimated transition tax on undistributed foreign earnings, the impacts of estimated incremental foreign withholding taxes on expected repatriated earnings and the re–measurement of deferred tax assets and liabilities due to the reduction of the U.S. federal corporate income tax rate for reasons discussed above. | ||||
($ in millions) | Quarter Ended | ||||||||||||||||
Consolidated | Sep 27, 2020 | Sep 29, 2019 | Change | ||||||||||||||
General and administrative expenses, as reported (GAAP) | $ | 439.0 | $ | 458.4 | (4.2)% | ||||||||||||
Restructuring and impairment costs (1) | (0.6) | 0.2 | |||||||||||||||
International transaction and integration-related items (2) | (5.6) | (8.0) | |||||||||||||||
Nestlé transaction and integration-related costs (3) | — | 0.1 | |||||||||||||||
Non-GAAP G&A | $ | 432.8 | $ | 450.7 | (4.0)% | ||||||||||||
Non-GAAP G&A as a % of total net revenues (4) | 7.0 | % | 6.7 | % | |||||||||||||
Operating income, as reported (GAAP) | $ | 558.3 | $ | 1,083.3 | (48.5)% | ||||||||||||
Restructuring and impairment costs (1) | 195.5 | 12.8 | |||||||||||||||
International transaction and integration-related items (2) | 64.0 | 64.5 | |||||||||||||||
Nestlé transaction and integration-related costs (3) | — | 0.1 | |||||||||||||||
Non-GAAP operating income | $ | 817.8 | $ | 1,160.7 | (29.5)% | ||||||||||||
Operating margin, as reported (GAAP) | 9.0 | % | 16.1 | % | (710) bps | ||||||||||||
Restructuring and impairment costs (1) | 3.2 | 0.2 | |||||||||||||||
International transaction and integration-related items (2) | 1.0 | 0.9 | |||||||||||||||
Nestlé transaction and integration-related costs (3) | — | — | |||||||||||||||
Non-GAAP operating margin | 13.2 | % | 17.2 | % | (400) bps | ||||||||||||
Diluted net earnings per share, as reported (GAAP) | $ | 0.33 | $ | 0.67 | (50.7)% | ||||||||||||
Restructuring and impairment costs (1) | 0.18 | 0.01 | |||||||||||||||
International transaction and integration-related items (2) | 0.05 | 0.05 | |||||||||||||||
Nestlé transaction and integration-related costs (3) | — | — | |||||||||||||||
Income tax effect on Non-GAAP adjustments (5) | (0.05) | (0.03) | |||||||||||||||
Non-GAAP EPS | $ | 0.51 | $ | 0.70 | (27.1)% |
Q4 QTD FY20 | Americas | International | Channel Development | Corporate and Other | Consolidated | |||||||||||||||||||||
Statement of Earnings Line Item | Restructuring, Impairment and Optimization Costs | International Transaction and Integration Costs | Restructuring, Impairment and Optimization Costs | Nestlé Transaction and Integration-Related Costs | International Transaction and Integration Costs | Nestlé Transaction and Integration-Related Costs | Restructuring, Impairment & Optimization Costs | Total Non-GAAP Adjustment | ||||||||||||||||||
Net revenue | ||||||||||||||||||||||||||
Production and distribution costs | — | |||||||||||||||||||||||||
Store operating expenses | 4.4 | 4.4 | ||||||||||||||||||||||||
Other operating expenses | — | — | ||||||||||||||||||||||||
Depreciation and amortization expenses | 53.9 | 53.9 | ||||||||||||||||||||||||
General and administrative expenses | 5.6 | 0.5 | — | — | 0.1 | 6.2 | ||||||||||||||||||||
Restructuring and impairments | 195.6 | (0.6) | — | 195.0 | ||||||||||||||||||||||
Income from equity investees | — | |||||||||||||||||||||||||
Total impact to operating income | (195.6) | (63.9) | 0.1 | — | — | — | (0.1) | (259.5) | ||||||||||||||||||
($ in millions) | Year Ended | ||||||||||||||||
Consolidated | Sep 27, 2020 | Sep 29, 2019 | Change | ||||||||||||||
General and administrative expenses, as reported (GAAP) | $ | 1,679.6 | $ | 1,824.1 | (7.9)% | ||||||||||||
Restructuring and impairment costs (1) | (1.9) | (9.3) | |||||||||||||||
International transaction and integration-related items (2) | (13.8) | (29.7) | |||||||||||||||
2018 U.S. stock award (3) | — | (61.3) | |||||||||||||||
Nestlé transaction and integration-related costs (4) | (0.5) | (1.8) | |||||||||||||||
Non-GAAP G&A | $ | 1,663.4 | $ | 1,722.0 | (3.4)% | ||||||||||||
Non-GAAP G&A as a % of total net revenues (5) | 7.1 | % | 6.5 | % | |||||||||||||
Operating income, as reported (GAAP) | $ | 1,561.7 | $ | 4,077.9 | (61.7)% | ||||||||||||
Restructuring and impairment costs (1) | 280.6 | 146.2 | |||||||||||||||
International transaction and integration-related items (2) | 243.5 | 262.0 | |||||||||||||||
2018 U.S. stock award (3) | — | 61.3 | |||||||||||||||
Nestlé transaction and integration-related costs (4) | 47.4 | 12.6 | |||||||||||||||
Non-GAAP operating income | $ | 2,133.2 | $ | 4,560.0 | (53.2)% | ||||||||||||
Operating margin, as reported (GAAP) | 6.6 | % | 15.4 | % | (880) bps | ||||||||||||
Restructuring and impairment costs (1) | 1.2 | 0.6 | |||||||||||||||
International transaction and integration-related items (2) | 1.1 | 1.0 | |||||||||||||||
2018 U.S. stock award (3) | — | 0.2 | |||||||||||||||
Nestlé transaction and integration-related costs (4) | 0.2 | — | |||||||||||||||
Non-GAAP operating margin | 9.1 | % | 17.2 | % | (810) bps | ||||||||||||
Diluted net earnings per share, as reported (GAAP) | $ | 0.79 | $ | 2.92 | (72.9)% | ||||||||||||
Gain on sale of certain retail operations | — | (0.51) | |||||||||||||||
Restructuring and impairment costs (1) | 0.23 | 0.12 | |||||||||||||||
International transaction and integration-related items (2) | 0.21 | 0.21 | |||||||||||||||
2018 U.S. stock award (3) | — | 0.05 | |||||||||||||||
Nestlé transaction and integration-related costs (4) | 0.04 | 0.01 | |||||||||||||||
Other tax matters (6) | — | 0.06 | |||||||||||||||
Income tax effect on Non-GAAP adjustments (7) | (0.10) | (0.03) | |||||||||||||||
Non-GAAP EPS | $ | 1.17 | $ | 2.83 | (58.7)% |
Q4 YTD FY20 | Americas | International | Channel Development | Corporate and Other | Consolidated | |||||||||||||||||||||
Statement of Earnings Line Item | Restructuring, Impairment and Optimization Costs | International Transaction and Integration Costs | Restructuring, Impairment and Optimization Costs | Nestlé Transaction and Integration-Related Costs | International Transaction and Integration Costs | Nestlé Transaction and Integration-Related Costs | Restructuring, Impairment & Optimization Costs | Total Non-GAAP Adjustment | ||||||||||||||||||
Net revenue | ||||||||||||||||||||||||||
Production and distribution costs | — | |||||||||||||||||||||||||
Store operating expenses | 16.2 | 16.2 | ||||||||||||||||||||||||
Other operating expenses | 46.9 | 46.9 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 213.5 | 213.5 | ||||||||||||||||||||||||
General and administrative expenses | 13.2 | 1.7 | 0.6 | 0.5 | 0.2 | 16.2 | ||||||||||||||||||||
Restructuring and impairments | 257.6 | (1.2) | 22.3 | 278.7 | ||||||||||||||||||||||
Income from equity investees | — | |||||||||||||||||||||||||
Total impact to operating income | (257.6) | (242.9) | (0.5) | (46.9) | (0.6) | (0.5) | (22.5) | (571.5) | ||||||||||||||||||
Quarter Ended | Year Ended | |||||||
Consolidated | Dec 27, 2020 | Oct 3, 2021 | ||||||
(Projected 13-weeks) | (Projected 53-weeks) | |||||||
Operating Margin (GAAP) | 14 - 15% | |||||||
Restructuring costs (1) | 1 | % | ||||||
International transaction and integration-related items (2) | 1 | % | ||||||
Non-GAAP Operating Margin | 16 - 17% | |||||||
Diluted net earnings per share (GAAP) | $ 0.32 - 0.37 | $ 2.34 - 2.54 | ||||||
Restructuring costs (1) | 0.19 | 0.27 | ||||||
International transaction and integration-related items (2) | 0.05 | 0.19 | ||||||
Income tax effect on Non-GAAP adjustments (3) | (0.06) | (0.10) | ||||||
Non-GAAP earnings per share | $ 0.50 - 0.55 | $ 2.70 - 2.90 | ||||||
O\H;P?X\\<_#O5QK_ ( \8>+O!&OP<+KGA/Q%
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M8;-)ULIK\W6,8YC1P\:C7_3J=1;:JZO^MM%
I%PG3HOWH5LQC:=6R6!G&CS5ZTTTTMU+///.9YIO](N+B
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M:UTHQ(R6?A[XEN0J+I"D:7XO?_D"&RUASX=K^(NI()KBVD@N+>?R;JWQ