(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: | April 27, 2021 | |||||||||||||
By: | /s/ Rachel Ruggeri | |||||||||||||
Rachel Ruggeri | ||||||||||||||
executive vice president, chief financial officer |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Mar 28, 2021 | Mar 29, 2020 | |||||||||||||||
Change in Comparable Store Sales (1) | 9% | (3)% | |||||||||||||||
Change in Transactions | (10)% | (7)% | |||||||||||||||
Change in Ticket | 22% | 5% | |||||||||||||||
Store Count | 18,120 | 18,271 | (1)% | ||||||||||||||
Revenues | $4,664.6 | $4,330.0 | 8% | ||||||||||||||
Operating Income | $905.3 | $621.2 | 46% | ||||||||||||||
Operating Margin | 19.4% | 14.3% | 510 bps | ||||||||||||||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed. |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Mar 28, 2021 | Mar 29, 2020 | |||||||||||||||
Change in Comparable Store Sales (1) | 35% | (31)% | |||||||||||||||
Change in Transactions | 26% | (32)% | |||||||||||||||
Change in Ticket | 7% | 1% | |||||||||||||||
Store Count | 14,823 | 13,779 | 8% | ||||||||||||||
Revenues | $1,610.9 | $1,134.6 | 42% | ||||||||||||||
Operating Income/(Loss) | $251.5 | ($15.4) | nm | ||||||||||||||
Operating Margin/(Loss) | 15.6% | (1.4)% | 1,700 bps | ||||||||||||||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed. For the second quarter of fiscal 2021, the International segment's comparable store sales included a 4% benefit related to a temporary value-added tax exemption in China. |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Mar 28, 2021 | Mar 29, 2020 | |||||||||||||||
Revenues | $369.9 | $519.1 | (29)% | ||||||||||||||
Operating Income | $172.6 | $189.6 | (9)% | ||||||||||||||
Operating Margin | 46.7% | 36.5% | 1,020 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 | ||||||||||||||||||||||||||||
Mar 28, 2021 | Mar 29, 2020 | % Change | Mar 28, 2021 | Mar 29, 2020 | |||||||||||||||||||||||||
As a % of total net revenues | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 5,653.1 | $ | 4,766.0 | 18.6 | % | 84.8 | % | 79.5 | % | |||||||||||||||||||
Licensed stores | 595.0 | 689.8 | (13.7) | 8.9 | 11.5 | ||||||||||||||||||||||||
Other | 419.9 | 539.9 | (22.2) | 6.3 | 9.0 | ||||||||||||||||||||||||
Total net revenues | 6,668.0 | 5,995.7 | 11.2 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 1,992.4 | 1,997.7 | (0.3) | 29.9 | 33.3 | ||||||||||||||||||||||||
Store operating expenses | 2,823.3 | 2,721.4 | 3.7 | 42.3 | 45.4 | ||||||||||||||||||||||||
Other operating expenses | 87.7 | 95.0 | (7.7) | 1.3 | 1.6 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 366.7 | 356.3 | 2.9 | 5.5 | 5.9 | ||||||||||||||||||||||||
General and administrative expenses | 464.4 | 406.5 | 14.2 | 7.0 | 6.8 | ||||||||||||||||||||||||
Restructuring and impairments | 23.0 | (0.7) | nm | 0.3 | — | ||||||||||||||||||||||||
Total operating expenses | 5,757.5 | 5,576.2 | 3.3 | 86.3 | 93.0 | ||||||||||||||||||||||||
Income from equity investees | 77.1 | 67.9 | 13.5 | 1.2 | 1.1 | ||||||||||||||||||||||||
Operating income | 987.6 | 487.4 | 102.6 | 14.8 | 8.1 | ||||||||||||||||||||||||
Interest income and other, net | 17.3 | 2.0 | 765.0 | 0.3 | — | ||||||||||||||||||||||||
Interest expense | (115.0) | (99.2) | 15.9 | (1.7) | (1.7) | ||||||||||||||||||||||||
Earnings before income taxes | 889.9 | 390.2 | 128.1 | 13.3 | 6.5 | ||||||||||||||||||||||||
Income tax expense | 230.5 | 65.4 | 252.4 | 3.5 | 1.1 | ||||||||||||||||||||||||
Net earnings including noncontrolling interests | 659.4 | 324.8 | 103.0 | 9.9 | 5.4 | ||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | (3.6) | nm | — | (0.1) | ||||||||||||||||||||||||
Net earnings attributable to Starbucks | $ | 659.4 | $ | 328.4 | 100.8 | 9.9 | % | 5.5 | % | ||||||||||||||||||||
Net earnings per common share - diluted | $ | 0.56 | $ | 0.28 | 100.0 | ||||||||||||||||||||||||
Weighted avg. shares outstanding - diluted | 1,184.8 | 1,180.7 | |||||||||||||||||||||||||||
Cash dividends declared per share | $ | 0.45 | $ | 0.41 | |||||||||||||||||||||||||
Supplemental Ratios: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 49.9 | % | 57.1 | % | |||||||||||||||||||||||||
Effective tax rate including noncontrolling interests | 25.9 | % | 16.8 | % |
Two Quarters Ended | Two Quarters Ended | ||||||||||||||||||||||||||||
Mar 28, 2021 | Mar 29, 2020 | % Change | Mar 28, 2021 | Mar 29, 2020 | |||||||||||||||||||||||||
As a % of total net revenues | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 11,379.6 | $ | 10,546.6 | 7.9 | % | 84.8 | % | 80.6 | % | |||||||||||||||||||
Licensed stores | 1,208.8 | 1,481.9 | (18.4) | 9.0 | 11.3 | ||||||||||||||||||||||||
Other | 829.1 | 1,064.3 | (22.1) | 6.2 | 8.1 | ||||||||||||||||||||||||
Total net revenues | 13,417.5 | 13,092.8 | 2.5 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 4,041.5 | 4,234.2 | (4.6) | 30.1 | 32.3 | ||||||||||||||||||||||||
Store operating expenses | 5,690.7 | 5,542.9 | 2.7 | 42.4 | 42.3 | ||||||||||||||||||||||||
Other operating expenses | 179.5 | 196.7 | (8.7) | 1.3 | 1.5 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 732.6 | 707.4 | 3.6 | 5.5 | 5.4 | ||||||||||||||||||||||||
General and administrative expenses | 936.5 | 840.7 | 11.4 | 7.0 | 6.4 | ||||||||||||||||||||||||
Restructuring and impairments | 95.2 | 5.6 | nm | 0.7 | — | ||||||||||||||||||||||||
Total operating expenses | 11,676.0 | 11,527.5 | 1.3 | 87.0 | 88.0 | ||||||||||||||||||||||||
Income from equity investees | 159.7 | 141.9 | 12.5 | 1.2 | 1.1 | ||||||||||||||||||||||||
Operating income | 1,901.2 | 1,707.2 | 11.4 | 14.2 | 13.0 | ||||||||||||||||||||||||
Interest income and other, net | 32.7 | 18.0 | 81.7 | 0.2 | 0.1 | ||||||||||||||||||||||||
Interest expense | (235.8) | (191.1) | 23.4 | (1.8) | (1.5) | ||||||||||||||||||||||||
Earnings before income taxes | 1,698.1 | 1,534.1 | 10.7 | 12.7 | 11.7 | ||||||||||||||||||||||||
Income tax expense | 416.5 | 324.0 | 28.5 | 3.1 | 2.5 | ||||||||||||||||||||||||
Net earnings including noncontrolling interests | 1,281.6 | 1,210.1 | 5.9 | 9.6 | 9.2 | ||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | (4.0) | nm | — | — | ||||||||||||||||||||||||
Net earnings attributable to Starbucks | $ | 1,281.6 | $ | 1,214.1 | 5.6 | 9.6 | % | 9.3 | % | ||||||||||||||||||||
Net earnings per common share - diluted | $ | 1.08 | $ | 1.02 | 5.9 | % | |||||||||||||||||||||||
Weighted avg. shares outstanding - diluted | 1,183.9 | 1,185.8 | |||||||||||||||||||||||||||
Cash dividends declared per share | $ | 1.35 | $ | 0.82 | |||||||||||||||||||||||||
Supplemental Ratios: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 50.0 | % | 52.6 | % | |||||||||||||||||||||||||
Effective tax rate including noncontrolling interests | 24.5 | % | 21.1 | % |
Mar 28, 2021 | Mar 29, 2020 | % Change | Mar 28, 2021 | Mar 29, 2020 | |||||||||||||||||||||||||
Quarter Ended | As a % of Americas total net revenues | ||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 4,268.4 | $ | 3,863.6 | 10.5 | % | 91.5 | % | 89.2 | % | |||||||||||||||||||
Licensed stores | 394.2 | 464.2 | (15.1) | 8.5 | 10.7 | ||||||||||||||||||||||||
Other | 2.0 | 2.2 | (9.1) | — | 0.1 | ||||||||||||||||||||||||
Total net revenues | 4,664.6 | 4,330.0 | 7.7 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 1,227.6 | 1,248.2 | (1.7) | 26.3 | 28.8 | ||||||||||||||||||||||||
Store operating expenses | 2,203.1 | 2,158.6 | 2.1 | 47.2 | 49.9 | ||||||||||||||||||||||||
Other operating expenses | 41.9 | 41.8 | 0.2 | 0.9 | 1.0 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 186.0 | 191.5 | (2.9) | 4.0 | 4.4 | ||||||||||||||||||||||||
General and administrative expenses | 77.7 | 68.2 | 13.9 | 1.7 | 1.6 | ||||||||||||||||||||||||
Restructuring and impairments | 23.0 | 0.5 | nm | 0.5 | — | ||||||||||||||||||||||||
Total operating expenses | 3,759.3 | 3,708.8 | 1.4 | 80.6 | 85.7 | ||||||||||||||||||||||||
Operating income | $ | 905.3 | $ | 621.2 | 45.7 | % | 19.4 | % | 14.3 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 51.6 | % | 55.9 | % | |||||||||||||||||||||||||
Two Quarters Ended | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 8,553.2 | $ | 8,334.6 | 2.6 | % | 91.3 | % | 89.2 | % | |||||||||||||||||||
Licensed stores | 810.3 | 1,001.5 | (19.1) | 8.6 | 10.7 | ||||||||||||||||||||||||
Other | 4.4 | 4.8 | (8.3) | — | 0.1 | ||||||||||||||||||||||||
Total net revenues | 9,367.9 | 9,340.9 | 0.3 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 2,503.8 | 2,636.6 | (5.0) | 26.7 | 28.2 | ||||||||||||||||||||||||
Store operating expenses | 4,442.1 | 4,373.0 | 1.6 | 47.4 | 46.8 | ||||||||||||||||||||||||
Other operating expenses | 84.7 | 84.3 | 0.5 | 0.9 | 0.9 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 374.9 | 380.7 | (1.5) | 4.0 | 4.1 | ||||||||||||||||||||||||
General and administrative expenses | 148.5 | 140.6 | 5.6 | 1.6 | 1.5 | ||||||||||||||||||||||||
Restructuring and impairments | 95.2 | 5.7 | nm | 1.0 | 0.1 | ||||||||||||||||||||||||
Total operating expenses | 7,649.2 | 7,620.9 | 0.4 | 81.7 | 81.6 | ||||||||||||||||||||||||
Operating income | $ | 1,718.7 | $ | 1,720.0 | (0.1) | % | 18.3 | % | 18.4 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 51.9 | % | 52.5 | % | |||||||||||||||||||||||||
Mar 28, 2021 | Mar 29, 2020 | % Change | Mar 28, 2021 | Mar 29, 2020 | |||||||||||||||||||||||||
Quarter Ended | As a % of International total net revenues | ||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 1,384.7 | $ | 902.4 | 53.4 | % | 86.0 | % | 79.5 | % | |||||||||||||||||||
Licensed stores | 200.8 | 225.6 | (11.0) | 12.5 | 19.9 | ||||||||||||||||||||||||
Other | 25.4 | 6.6 | 284.8 | 1.6 | 0.6 | ||||||||||||||||||||||||
Total net revenues | 1,610.9 | 1,134.6 | 42.0 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 513.5 | 387.7 | 32.4 | 31.9 | 34.2 | ||||||||||||||||||||||||
Store operating expenses | 620.2 | 562.8 | 10.2 | 38.5 | 49.6 | ||||||||||||||||||||||||
Other operating expenses | 29.3 | 31.8 | (7.9) | 1.8 | 2.8 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 143.4 | 130.0 | 10.3 | 8.9 | 11.5 | ||||||||||||||||||||||||
General and administrative expenses | 79.8 | 63.7 | 25.3 | 5.0 | 5.6 | ||||||||||||||||||||||||
Restructuring and impairments | — | (1.2) | nm | — | (0.1) | ||||||||||||||||||||||||
Total operating expenses | 1,386.2 | 1,174.8 | 18.0 | 86.1 | 103.5 | ||||||||||||||||||||||||
Income from equity investees | 26.8 | 24.8 | 8.1 | 1.7 | 2.2 | ||||||||||||||||||||||||
Operating income/(loss) | $ | 251.5 | $ | (15.4) | nm | 15.6 | % | (1.4) | % | ||||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 44.8 | % | 62.4 | % | |||||||||||||||||||||||||
Two Quarters Ended | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 2,826.4 | $ | 2,212.0 | 27.8 | % | 86.6 | % | 81.8 | % | |||||||||||||||||||
Licensed stores | 398.5 | 480.4 | (17.0) | 12.2 | 17.8 | ||||||||||||||||||||||||
Other | 40.4 | 13.3 | 203.8 | 1.2 | 0.5 | ||||||||||||||||||||||||
Total net revenues | 3,265.3 | 2,705.7 | 20.7 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 1,033.9 | 876.2 | 18.0 | 31.7 | 32.4 | ||||||||||||||||||||||||
Store operating expenses | 1,248.6 | 1,169.9 | 6.7 | 38.2 | 43.2 | ||||||||||||||||||||||||
Other operating expenses | 63.6 | 67.7 | (6.1) | 1.9 | 2.5 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 283.4 | 256.7 | 10.4 | 8.7 | 9.5 | ||||||||||||||||||||||||
General and administrative expenses | 162.5 | 130.9 | 24.1 | 5.0 | 4.8 | ||||||||||||||||||||||||
Restructuring and impairments | — | (0.4) | nm | — | — | ||||||||||||||||||||||||
Total operating expenses | 2,792.0 | 2,501.0 | 11.6 | 85.5 | 92.4 | ||||||||||||||||||||||||
Income from equity investees | 53.0 | 55.8 | (5.0) | 1.6 | 2.1 | ||||||||||||||||||||||||
Operating income | $ | 526.3 | $ | 260.5 | 102.0 | % | 16.1 | % | 9.6 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 44.2 | % | 52.9 | % | |||||||||||||||||||||||||
Mar 28, 2021 | Mar 29, 2020 | % Change | Mar 28, 2021 | Mar 29, 2020 | |||||||||||||||||||||||||
Quarter Ended | As a % of Channel Development total net revenues | ||||||||||||||||||||||||||||
Net revenues | $ | 369.9 | $ | 519.1 | (28.7) | % | |||||||||||||||||||||||
Product and distribution costs | 231.9 | 351.6 | (34.0) | 62.7 | % | 67.7 | % | ||||||||||||||||||||||
Other operating expenses | 13.1 | 17.7 | (26.0) | 3.5 | 3.4 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 0.3 | 0.3 | — | 0.1 | 0.1 | ||||||||||||||||||||||||
General and administrative expenses | 2.3 | 3.0 | (23.3) | 0.6 | 0.6 | ||||||||||||||||||||||||
Total operating expenses | 247.6 | 372.6 | (33.5) | 66.9 | 71.8 | ||||||||||||||||||||||||
Income from equity investees | 50.3 | 43.1 | 16.7 | 13.6 | 8.3 | ||||||||||||||||||||||||
Operating income | $ | 172.6 | $ | 189.6 | (9.0) | % | 46.7 | % | 36.5 | % | |||||||||||||||||||
Two Quarters Ended | |||||||||||||||||||||||||||||
Net revenues | $ | 741.2 | $ | 1,013.7 | (26.9) | % | |||||||||||||||||||||||
Product and distribution costs | 465.4 | 690.4 | (32.6) | 62.8 | % | 68.1 | % | ||||||||||||||||||||||
Other operating expenses | 24.1 | 38.3 | (37.1) | 3.3 | 3.8 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 0.6 | 0.6 | — | 0.1 | 0.1 | ||||||||||||||||||||||||
General and administrative expenses | 4.5 | 5.4 | (16.7) | 0.6 | 0.5 | ||||||||||||||||||||||||
Total operating expenses | 494.6 | 734.7 | (32.7) | 66.7 | 72.5 | ||||||||||||||||||||||||
Income from equity investees | 106.7 | 86.1 | 23.9 | 14.4 | 8.5 | ||||||||||||||||||||||||
Operating income | $ | 353.3 | $ | 365.1 | (3.2) | % | 47.7 | % | 36.0 | % |
Mar 28, 2021 | Mar 29, 2020 | % Change | |||||||||||||||
Quarter Ended | |||||||||||||||||
Net revenues | $ | 22.6 | $ | 12.0 | 88.3 | % | |||||||||||
Product and distribution costs | 19.4 | 10.2 | 90.2 | ||||||||||||||
Other operating expenses | 3.4 | 3.7 | (8.1) | ||||||||||||||
Depreciation and amortization expenses | 37.0 | 34.5 | 7.2 | ||||||||||||||
General and administrative expenses | 304.6 | 271.6 | 12.2 | ||||||||||||||
Total operating expenses | 364.4 | 320.0 | 13.9 | ||||||||||||||
Operating loss | $ | (341.8) | $ | (308.0) | 11.0 | % | |||||||||||
Two Quarters Ended | |||||||||||||||||
Net revenues | 43.1 | 32.5 | 32.6 | ||||||||||||||
Product and distribution costs | 38.4 | 31.0 | 23.9 | ||||||||||||||
Other operating expenses | 7.1 | 6.4 | 10.9 | ||||||||||||||
Depreciation and amortization expenses | 73.7 | 69.4 | 6.2 | ||||||||||||||
General and administrative expenses | 621.0 | 563.8 | 10.1 | ||||||||||||||
Restructuring and impairments | — | 0.3 | nm | ||||||||||||||
Total operating expenses | 740.2 | 670.9 | 10.3 | ||||||||||||||
Operating loss | $ | (697.1) | $ | (638.4) | 9.2 | % |
Mar 28, 2021 | Sep 27, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 3,880.7 | $ | 4,350.9 | |||||||
Short-term investments | 123.0 | 281.2 | |||||||||
Accounts receivable, net | 880.2 | 883.4 | |||||||||
Inventories | 1,503.6 | 1,551.4 | |||||||||
Prepaid expenses and other current assets | 592.0 | 739.5 | |||||||||
Total current assets | 6,979.5 | 7,806.4 | |||||||||
Long-term investments | 284.8 | 206.1 | |||||||||
Equity investments | 499.4 | 478.7 | |||||||||
Property, plant and equipment, net | 6,123.1 | 6,241.4 | |||||||||
Operating lease, right-of-use asset | 8,036.8 | 8,134.1 | |||||||||
Deferred income taxes, net | 1,770.0 | 1,789.9 | |||||||||
Other long-term assets | 574.9 | 568.6 | |||||||||
Other intangible assets | 444.3 | 552.1 | |||||||||
Goodwill | 3,658.9 | 3,597.2 | |||||||||
TOTAL ASSETS | $ | 28,371.7 | $ | 29,374.5 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 1,033.6 | $ | 997.9 | |||||||
Accrued liabilities | 1,771.6 | 1,160.7 | |||||||||
Accrued payroll and benefits | 646.1 | 696.0 | |||||||||
Income taxes payable | 117.0 | 98.2 | |||||||||
Current portion of operating lease liability | 1,296.4 | 1,248.8 | |||||||||
Stored value card liability and current portion of deferred revenue | 1,622.1 | 1,456.5 | |||||||||
Short-term debt | 18.3 | 438.8 | |||||||||
Current portion of long-term debt | — | 1,249.9 | |||||||||
Total current liabilities | 6,505.1 | 7,346.8 | |||||||||
Long-term debt | 14,630.3 | 14,659.6 | |||||||||
Operating lease liability | 7,577.7 | 7,661.7 | |||||||||
Deferred revenue | 6,532.1 | 6,598.5 | |||||||||
Other long-term liabilities | 774.8 | 907.3 | |||||||||
Total liabilities | 36,020.0 | 37,173.9 | |||||||||
Shareholders' deficit: | |||||||||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,177.9 and 1,173.3 shares, respectively | 1.2 | 1.2 | |||||||||
Additional paid-in capital | 595.4 | 373.9 | |||||||||
Retained deficit | (8,124.3) | (7,815.6) | |||||||||
Accumulated other comprehensive loss | (126.3) | (364.6) | |||||||||
Total shareholders’ deficit | (7,654.0) | (7,805.1) | |||||||||
Noncontrolling interests | 5.7 | 5.7 | |||||||||
Total deficit | (7,648.3) | (7,799.4) | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) | $ | 28,371.7 | $ | 29,374.5 |
Two Quarters Ended | |||||||||||
Mar 28, 2021 | Mar 29, 2020 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net earnings including noncontrolling interests | $ | 1,281.6 | $ | 1,210.1 | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 772.9 | 746.9 | |||||||||
Deferred income taxes, net | (25.2) | 47.7 | |||||||||
Income earned from equity method investees | (131.3) | (116.3) | |||||||||
Distributions received from equity method investees | 130.2 | 98.1 | |||||||||
Stock-based compensation | 175.3 | 146.6 | |||||||||
Non-cash lease costs | 617.9 | 596.3 | |||||||||
Loss on retirement and impairment of assets | 175.4 | 30.9 | |||||||||
Other | (15.4) | 36.8 | |||||||||
Cash provided by/(used in) changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 12.8 | (60.7) | |||||||||
Inventories | 51.3 | 36.9 | |||||||||
Prepaid expenses and other current assets | 139.7 | (247.7) | |||||||||
Income taxes payable | 40.0 | (1,227.4) | |||||||||
Accounts payable | 21.3 | (186.4) | |||||||||
Deferred revenue | 89.8 | 112.1 | |||||||||
Operating lease liability | (676.3) | (608.6) | |||||||||
Other operating assets and liabilities | 59.5 | (140.5) | |||||||||
Net cash provided by operating activities | 2,719.5 | 474.8 | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchases of investments | (321.7) | (65.1) | |||||||||
Sales of investments | 121.7 | 93.7 | |||||||||
Maturities and calls of investments | 289.0 | 4.3 | |||||||||
Additions to property, plant and equipment | (647.9) | (758.3) | |||||||||
Other | (20.1) | (22.5) | |||||||||
Net cash used in investing activities | (579.0) | (747.9) | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Net proceeds/(payments) from issuance of commercial paper | (296.5) | 613.0 | |||||||||
Net proceeds from issuance of short-term debt | 203.3 | 494.1 | |||||||||
Repayments of short-term debt | (320.5) | — | |||||||||
Proceeds from issuance of long-term debt | — | 1,739.7 | |||||||||
Repayments of long-term debt | (1,250.0) | — | |||||||||
Proceeds from issuance of common stock | 134.4 | 65.4 | |||||||||
Cash dividends paid | (1,058.0) | (965.2) | |||||||||
Repurchase of common stock | — | (1,698.9) | |||||||||
Minimum tax withholdings on share-based awards | (90.1) | (87.6) | |||||||||
Other | — | (10.4) | |||||||||
Net cash provided by/(used in) financing activities | (2,677.4) | 150.1 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 66.7 | 8.7 | |||||||||
Net decrease in cash and cash equivalents | (470.2) | (114.3) | |||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||
Beginning of period | 4,350.9 | 2,686.6 | |||||||||
End of period | $ | 3,880.7 | $ | 2,572.3 | |||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest, net of capitalized interest | $ | 250.8 | $ | 186.3 | |||||||
Income taxes | $ | 236.2 | $ | 1,726.2 |
Quarter Ended | |||||||||||||||||
($ in millions) | Mar 28, 2021 | Mar 29, 2020 | Change (%) | ||||||||||||||
Revenues | $4,302.9 | $3,979.6 | 8% | ||||||||||||||
Change in Comparable Store Sales (1) | 9% | (3)% | |||||||||||||||
Change in Transactions | (10)% | (7)% | |||||||||||||||
Change in Ticket | 21% | 5% | |||||||||||||||
Store Count | 15,288 | 15,257 | —% | ||||||||||||||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. The results from Siren Retail operations are not reflected in comparable store sales. Comparable store sales include stores that were temporarily closed as a result of the COVID-19 pandemic and exclude stores identified for permanent closure. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
($ in millions) | Mar 28, 2021 | Mar 29, 2020 | Change (%) | ||||||||||||||
Revenues | $860.6 | $384.0 | 124% | ||||||||||||||
Change in Comparable Store Sales (1) | 91% | (50)% | |||||||||||||||
Change in Transactions | 93% | (53)% | |||||||||||||||
Change in Ticket | (1)% | 6% | |||||||||||||||
Store Count | 4,973 | 4,351 | 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 pandemic, and for the second quarter of fiscal 2021, included a 9% benefit related to a temporary value-added tax exemption. |
Net stores opened/(closed) and transferred during the period | |||||||||||||||||||||||||||||||||||
Quarter Ended | Two Quarters Ended | Stores open as of | |||||||||||||||||||||||||||||||||
Mar 28, 2021 | Mar 29, 2020 | Mar 28, 2021 | Mar 29, 2020 | Mar 28, 2021 | Mar 29, 2020 | ||||||||||||||||||||||||||||||
Americas: | |||||||||||||||||||||||||||||||||||
Company-operated stores | (209) | 31 | (289) | 77 | 9,820 | 10,051 | |||||||||||||||||||||||||||||
Licensed stores | 21 | 37 | 55 | 127 | 8,300 | 8,220 | |||||||||||||||||||||||||||||
Total Americas | (188) | 68 | (234) | 204 | 18,120 | 18,271 | |||||||||||||||||||||||||||||
International: | |||||||||||||||||||||||||||||||||||
Company-operated stores | 123 | 78 | 308 | 277 | 6,836 | 6,137 | |||||||||||||||||||||||||||||
Licensed stores | 70 | 109 | 209 | 313 | 7,987 | 7,642 | |||||||||||||||||||||||||||||
Total International | 193 | 187 | 517 | 590 | 14,823 | 13,779 | |||||||||||||||||||||||||||||
Total Company | 5 | 255 | 283 | 794 | 32,943 | 32,050 | |||||||||||||||||||||||||||||
Non-GAAP Exclusion | Rationale | ||||
Restructuring and impairment costs | Management excludes restructuring and impairment costs relating to the write-down of certain company-operated store assets. Management excludes these items for reasons discussed above. These expenses are anticipated to be completed within a finite period of time. | ||||
Integration costs | Management excludes 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. | ||||
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. | ||||
($ in millions) | Quarter Ended | ||||||||||||||||
Consolidated | Mar 28, 2021 | Mar 29, 2020 | Change | ||||||||||||||
General and administrative expenses, as reported (GAAP) | $ | 464.4 | $ | 406.5 | 14.2% | ||||||||||||
Restructuring and impairment costs (1) | — | (0.6) | |||||||||||||||
Integration costs (2) | (4.6) | (2.3) | |||||||||||||||
Nestlé transaction and integration-related costs (3) | — | (0.2) | |||||||||||||||
Non-GAAP G&A | $ | 459.8 | $ | 403.4 | 14.0% | ||||||||||||
Non-GAAP G&A as a % of total net revenues (4) | 6.9 | % | 6.7 | % | |||||||||||||
Operating income, as reported (GAAP) | $ | 987.6 | $ | 487.4 | 102.6% | ||||||||||||
Restructuring and impairment costs (1) | 23.0 | (0.1) | |||||||||||||||
Integration costs (2) | 65.2 | 60.1 | |||||||||||||||
Nestlé transaction and integration-related costs (3) | — | 6.8 | |||||||||||||||
Non-GAAP operating income | $ | 1,075.8 | $ | 554.2 | 94.1% | ||||||||||||
Operating margin, as reported (GAAP) | 14.8 | % | 8.1 | % | 670 bps | ||||||||||||
Restructuring and impairment costs (1) | 0.3 | — | |||||||||||||||
Integration costs (2) | 1.0 | 1.0 | |||||||||||||||
Nestlé transaction and integration-related costs (3) | — | 0.1 | |||||||||||||||
Non-GAAP operating margin | 16.1 | % | 9.2 | % | 690 bps | ||||||||||||
Diluted net earnings per share, as reported (GAAP) | $ | 0.56 | $ | 0.28 | 100.0% | ||||||||||||
Restructuring and impairment costs (1) | 0.02 | — | |||||||||||||||
Integration costs (2) | 0.05 | 0.05 | |||||||||||||||
Nestlé transaction and integration-related costs (3) | — | 0.01 | |||||||||||||||
Income tax effect on Non-GAAP adjustments (5) | (0.01) | (0.02) | |||||||||||||||
Non-GAAP EPS | $ | 0.62 | $ | 0.32 | 93.8% |
Q2 QTD FY21 | Americas | International | Corporate and Other | Consolidated | ||||||||||
Statement of Earnings Line Item | Restructuring and Impairment Costs | Integration Costs | Integration Costs | Total Non-GAAP Adjustment | ||||||||||
Net revenue | ||||||||||||||
Production and distribution costs | — | |||||||||||||
Store operating expenses | 3.7 | 3.7 | ||||||||||||
Other operating expenses | — | |||||||||||||
Depreciation and amortization expenses | 56.9 | 56.9 | ||||||||||||
General and administrative expenses | 4.4 | 0.2 | 4.6 | |||||||||||
Restructuring and impairments | 23.0 | 23.0 | ||||||||||||
Income from equity investees | — | |||||||||||||
Total impact to operating income | (23.0) | (65.0) | (0.2) | (88.2) | ||||||||||
Year Ended | |||||
Consolidated | Oct 3, 2021 | ||||
(Projected 53-weeks) | |||||
Operating Margin (GAAP) | 15.0 - 16.0% | ||||
Integration costs (1) | 1.0 | % | |||
Restructuring costs (2) | 0.5 | % | |||
Non-GAAP Operating Margin | 16.5 - 17.5% | ||||
Diluted net earnings per share (GAAP) | $2.65 - $2.75 | ||||
Integration costs (1) | 0.20 | ||||
Restructuring costs (2) | 0.12 | ||||
Income tax effect on Non-GAAP adjustments (3) | (0.07) | ||||
Non-GAAP earnings per share | $2.90 - $3.00 | ||||
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