(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: | May 2, 2023 | |||||||||||||
By: | /s/ Rachel Ruggeri | |||||||||||||
Rachel Ruggeri | ||||||||||||||
executive vice president, chief financial officer |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||
Change in Comparable Store Sales (1) | 12% | 12% | |||||||||||||||
Change in Transactions | 6% | 5% | |||||||||||||||
Change in Ticket | 5% | 7% | |||||||||||||||
Store Count | 17,482 | 16,926 | 3% | ||||||||||||||
Revenues | $6,380.6 | $5,445.7 | 17% | ||||||||||||||
Operating Income | $1,217.9 | $931.5 | 31% | ||||||||||||||
Operating Margin | 19.1% | 17.1% | 200 bps | ||||||||||||||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales. |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||
Change in Comparable Store Sales (1) | 7% | (8)% | |||||||||||||||
Change in Transactions | 7% | (3)% | |||||||||||||||
Change in Ticket | 0% | (5)% | |||||||||||||||
Store Count | 19,152 | 17,704 | 8% | ||||||||||||||
Revenues | $1,854.8 | $1,702.4 | 9% | ||||||||||||||
Operating Income | $314.7 | $180.7 | 74% | ||||||||||||||
Operating Margin | 17.0% | 10.6% | 640 bps | ||||||||||||||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed. |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||
Revenues | $480.7 | $463.1 | 4% | ||||||||||||||
Operating Income | $262.1 | $197.9 | 32% | ||||||||||||||
Operating Margin | 54.5% | 42.7% | 1,180 bps |
Starbucks Contact, Investor Relations: | Starbucks Contact, Media: | |||||||
Tiffany Willis | Reggie Borges | |||||||
investorrelations@starbucks.com | press@starbucks.com |
Quarter Ended | Quarter Ended | ||||||||||||||||||||||||||||
Apr 2, 2023 | Apr 3, 2022 | % Change | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||||||||||||
As a % of total net revenues | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 7,142.3 | $ | 6,276.7 | 13.8 | % | 81.9 | % | 82.2 | % | |||||||||||||||||||
Licensed stores | 1,069.5 | 849.5 | 25.9 | 12.3 | 11.1 | ||||||||||||||||||||||||
Other | 508.0 | 509.4 | (0.3) | 5.8 | 6.7 | ||||||||||||||||||||||||
Total net revenues | 8,719.8 | 7,635.6 | 14.2 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 2,801.7 | 2,465.8 | 13.6 | 32.1 | 32.3 | ||||||||||||||||||||||||
Store operating expenses | 3,636.0 | 3,314.7 | 9.7 | 41.7 | 43.4 | ||||||||||||||||||||||||
Other operating expenses | 126.2 | 101.7 | 24.1 | 1.4 | 1.3 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 341.9 | 367.7 | (7.0) | 3.9 | 4.8 | ||||||||||||||||||||||||
General and administrative expenses | 620.4 | 481.5 | 28.8 | 7.1 | 6.3 | ||||||||||||||||||||||||
Restructuring and impairments | 8.8 | 4.4 | 100.0 | 0.1 | 0.1 | ||||||||||||||||||||||||
Total operating expenses | 7,535.0 | 6,735.8 | 11.9 | 86.4 | 88.2 | ||||||||||||||||||||||||
Income from equity investees | 51.4 | 49.1 | 4.7 | 0.6 | 0.6 | ||||||||||||||||||||||||
Gain from sale of assets | 91.3 | — | nm | 1.0 | — | ||||||||||||||||||||||||
Operating income | 1,327.5 | 948.9 | 39.9 | 15.2 | 12.4 | ||||||||||||||||||||||||
Interest income and other, net | 18.4 | 46.3 | (60.3) | 0.2 | 0.6 | ||||||||||||||||||||||||
Interest expense | (136.3) | (119.1) | 14.4 | (1.6) | (1.6) | ||||||||||||||||||||||||
Earnings before income taxes | 1,209.6 | 876.1 | 38.1 | 13.9 | 11.5 | ||||||||||||||||||||||||
Income tax expense | 301.3 | 201.1 | 49.8 | 3.5 | 2.6 | ||||||||||||||||||||||||
Net earnings including noncontrolling interests | 908.3 | 675.0 | 34.6 | 10.4 | 8.8 | ||||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | 0.0 | 0.5 | nm | 0.0 | 0.0 | ||||||||||||||||||||||||
Net earnings attributable to Starbucks | $ | 908.3 | $ | 674.5 | 34.7 | 10.4 | % | 8.8 | % | ||||||||||||||||||||
Net earnings per common share - diluted | $ | 0.79 | $ | 0.58 | 36.2 | % | |||||||||||||||||||||||
Weighted avg. shares outstanding - diluted | 1,152.7 | 1,153.9 | |||||||||||||||||||||||||||
Cash dividends declared per share | $ | 0.53 | $ | 0.49 | |||||||||||||||||||||||||
Supplemental Ratios: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 50.9 | % | 52.8 | % | |||||||||||||||||||||||||
Effective tax rate including noncontrolling interests | 24.9 | % | 23.0 | % |
Two Quarters Ended | Two Quarters Ended | ||||||||||||||||||||||||||||
Apr 2, 2023 | Apr 3, 2022 | % Change | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||||||||||||
As a % of total net revenues | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 14,225.7 | $ | 12,999.1 | 9.4 | % | 81.6 | % | 82.9 | % | |||||||||||||||||||
Licensed stores | 2,189.0 | 1,700.3 | 28.7 | 12.6 | 10.8 | ||||||||||||||||||||||||
Other | 1,019.1 | 986.6 | 3.3 | 5.8 | 6.3 | ||||||||||||||||||||||||
Total net revenues | 17,433.8 | 15,686.0 | 11.1 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 5,611.9 | 4,992.7 | 12.4 | 32.2 | 31.8 | ||||||||||||||||||||||||
Store operating expenses | 7,301.3 | 6,714.6 | 8.7 | 41.9 | 42.8 | ||||||||||||||||||||||||
Other operating expenses | 255.4 | 203.4 | 25.6 | 1.5 | 1.3 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 669.0 | 733.8 | (8.8) | 3.8 | 4.7 | ||||||||||||||||||||||||
General and administrative expenses | 1,201.3 | 1,007.3 | 19.3 | 6.9 | 6.4 | ||||||||||||||||||||||||
Restructuring and impairments | 14.7 | (3.1) | nm | 0.1 | 0.0 | ||||||||||||||||||||||||
Total operating expenses | 15,053.6 | 13,648.7 | 10.3 | 86.3 | 87.0 | ||||||||||||||||||||||||
Income from equity investees | 109.2 | 89.4 | 22.1 | 0.6 | 0.6 | ||||||||||||||||||||||||
Gain from sale of assets | 91.3 | — | nm | 0.5 | — | ||||||||||||||||||||||||
Operating income | 2,580.7 | 2,126.7 | 21.3 | 14.8 | 13.6 | ||||||||||||||||||||||||
Interest income and other, net | 30.0 | 46.2 | (35.1) | 0.2 | 0.3 | ||||||||||||||||||||||||
Interest expense | (266.0) | (234.4) | 13.5 | (1.5) | (1.5) | ||||||||||||||||||||||||
Earnings before income taxes | 2,344.7 | 1,938.5 | 21.0 | 13.4 | 12.4 | ||||||||||||||||||||||||
Income tax expense | 581.1 | 447.4 | 29.9 | 3.3 | 2.9 | ||||||||||||||||||||||||
Net earnings including noncontrolling interests | 1,763.6 | 1,491.1 | 18.3 | 10.1 | 9.5 | ||||||||||||||||||||||||
Net earnings attributable to noncontrolling interests | 0.0 | 0.7 | nm | 0.0 | 0.0 | ||||||||||||||||||||||||
Net earnings attributable to Starbucks | $ | 1,763.6 | $ | 1,490.4 | 18.3 | 10.1 | % | 9.5 | % | ||||||||||||||||||||
Net earnings per common share - diluted | $ | 1.53 | $ | 1.28 | 19.5 | % | |||||||||||||||||||||||
Weighted avg. shares outstanding - diluted | 1,152.8 | 1,165.2 | |||||||||||||||||||||||||||
Cash dividends declared per share | $ | 1.06 | $ | 0.98 | |||||||||||||||||||||||||
Supplemental Ratios: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 51.3 | % | 51.7 | % | |||||||||||||||||||||||||
Effective tax rate including noncontrolling interests | 24.8 | % | 23.1 | % |
Apr 2, 2023 | Apr 3, 2022 | % Change | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||||||||||||
Quarter Ended | As a % of North America total net revenues | ||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 5,742.7 | $ | 4,936.3 | 16.3 | % | 90.0 | % | 90.6 | % | |||||||||||||||||||
Licensed stores | 637.4 | 507.0 | 25.7 | 10.0 | 9.3 | ||||||||||||||||||||||||
Other | 0.5 | 2.4 | (79.2) | 0.0 | 0.0 | ||||||||||||||||||||||||
Total net revenues | 6,380.6 | 5,445.7 | 17.2 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 1,821.7 | 1,564.0 | 16.5 | 28.6 | 28.7 | ||||||||||||||||||||||||
Store operating expenses | 2,951.6 | 2,625.4 | 12.4 | 46.3 | 48.2 | ||||||||||||||||||||||||
Other operating expenses | 63.4 | 47.1 | 34.6 | 1.0 | 0.9 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 226.3 | 202.0 | 12.0 | 3.5 | 3.7 | ||||||||||||||||||||||||
General and administrative expenses | 91.2 | 71.3 | 27.9 | 1.4 | 1.3 | ||||||||||||||||||||||||
Restructuring and impairments | 8.5 | 4.4 | 93.2 | 0.1 | 0.1 | ||||||||||||||||||||||||
Total operating expenses | 5,162.7 | 4,514.2 | 14.4 | 80.9 | 82.9 | ||||||||||||||||||||||||
Operating income | $ | 1,217.9 | $ | 931.5 | 30.7 | % | 19.1 | % | 17.1 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 51.4 | % | 53.2 | % | |||||||||||||||||||||||||
Two Quarters Ended | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 11,613.2 | $ | 10,150.4 | 14.4 | % | 89.8 | % | 90.8 | % | |||||||||||||||||||
Licensed stores | 1,317.4 | 1,022.9 | 28.8 | 10.2 | 9.2 | ||||||||||||||||||||||||
Other | 1.2 | 4.7 | (74.5) | 0.0 | 0.0 | ||||||||||||||||||||||||
Total net revenues | 12,931.8 | 11,178.0 | 15.7 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 3,739.3 | 3,193.4 | 17.1 | 28.9 | 28.6 | ||||||||||||||||||||||||
Store operating expenses | 5,983.0 | 5,327.7 | 12.3 | 46.3 | 47.7 | ||||||||||||||||||||||||
Other operating expenses | 128.9 | 95.3 | 35.3 | 1.0 | 0.9 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 443.1 | 402.1 | 10.2 | 3.4 | 3.6 | ||||||||||||||||||||||||
General and administrative expenses | 193.5 | 148.0 | 30.7 | 1.5 | 1.3 | ||||||||||||||||||||||||
Restructuring and impairments | 13.6 | (3.1) | nm | 0.1 | 0.0 | ||||||||||||||||||||||||
Total operating expenses | 10,501.4 | 9,163.4 | 14.6 | 81.2 | 82.0 | ||||||||||||||||||||||||
Operating income | $ | 2,430.4 | $ | 2,014.6 | 20.6 | % | 18.8 | % | 18.0 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 51.5 | % | 52.5 | % | |||||||||||||||||||||||||
Apr 2, 2023 | Apr 3, 2022 | % Change | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||||||||||||
Quarter Ended | As a % of International total net revenues | ||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 1,399.6 | $ | 1,340.4 | 4.4 | % | 75.5 | % | 78.7 | % | |||||||||||||||||||
Licensed stores | 432.1 | 342.5 | 26.2 | 23.3 | 20.1 | ||||||||||||||||||||||||
Other | 23.1 | 19.5 | 18.5 | 1.2 | 1.1 | ||||||||||||||||||||||||
Total net revenues | 1,854.8 | 1,702.4 | 9.0 | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 632.9 | 580.5 | 9.0 | 34.1 | 34.1 | ||||||||||||||||||||||||
Store operating expenses | 684.4 | 689.3 | (0.7) | 36.9 | 40.5 | ||||||||||||||||||||||||
Other operating expenses | 49.9 | 39.5 | 26.3 | 2.7 | 2.3 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 86.3 | 133.4 | (35.3) | 4.7 | 7.8 | ||||||||||||||||||||||||
General and administrative expenses | 87.4 | 79.6 | 9.8 | 4.7 | 4.7 | ||||||||||||||||||||||||
Total operating expenses | 1,540.9 | 1,522.3 | 1.2 | 83.1 | 89.4 | ||||||||||||||||||||||||
Income from equity investees | 0.8 | 0.6 | 33.3 | 0.0 | 0.0 | ||||||||||||||||||||||||
Operating income | $ | 314.7 | $ | 180.7 | 74.2 | % | 17.0 | % | 10.6 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 48.9 | % | 51.4 | % | |||||||||||||||||||||||||
Two Quarters Ended | |||||||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Company-operated stores | $ | 2,612.5 | $ | 2,848.7 | (8.3) | % | 73.9 | % | 79.6 | % | |||||||||||||||||||
Licensed stores | 871.6 | 677.4 | 28.7 | 24.7 | 18.9 | ||||||||||||||||||||||||
Other | 50.8 | 52.3 | (2.9) | 1.4 | 1.5 | ||||||||||||||||||||||||
Total net revenues | 3,534.9 | 3,578.4 | (1.2) | 100.0 | 100.0 | ||||||||||||||||||||||||
Product and distribution costs | 1,226.5 | 1,196.4 | 2.5 | 34.7 | 33.4 | ||||||||||||||||||||||||
Store operating expenses | 1,318.3 | 1,386.9 | (4.9) | 37.3 | 38.8 | ||||||||||||||||||||||||
Other operating expenses | 100.6 | 78.7 | 27.8 | 2.8 | 2.2 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 167.7 | 266.5 | (37.1) | 4.7 | 7.4 | ||||||||||||||||||||||||
General and administrative expenses | 167.9 | 170.9 | (1.8) | 4.7 | 4.8 | ||||||||||||||||||||||||
Total operating expenses | 2,981.0 | 3,099.4 | (3.8) | 84.3 | 86.6 | ||||||||||||||||||||||||
Income from equity investees | 1.2 | 1.3 | (7.7) | 0.0 | 0.0 | ||||||||||||||||||||||||
Operating income | $ | 555.1 | $ | 480.3 | 15.6 | % | 15.7 | % | 13.4 | % | |||||||||||||||||||
Supplemental Ratio: | |||||||||||||||||||||||||||||
Store operating expenses as a % of company-operated store revenues | 50.5 | % | 48.7 | % | |||||||||||||||||||||||||
Apr 2, 2023 | Apr 3, 2022 | % Change | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||||||||||||
Quarter Ended | As a % of Channel Development total net revenues | ||||||||||||||||||||||||||||
Net revenues: | $ | 480.7 | $ | 463.1 | 3.8 | % | |||||||||||||||||||||||
Product and distribution costs | 345.6 | 300.5 | 15.0 | 71.9 | % | 64.9 | % | ||||||||||||||||||||||
Other operating expenses | 12.8 | 10.7 | 19.6 | 2.7 | 2.3 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 0.0 | 0.0 | nm | 0.0 | 0.0 | ||||||||||||||||||||||||
General and administrative expenses | 2.1 | 2.5 | (16.0) | 0.4 | 0.5 | ||||||||||||||||||||||||
Total operating expenses | 360.5 | 313.7 | 14.9 | 75.0 | 67.7 | ||||||||||||||||||||||||
Income from equity investees | 50.6 | 48.5 | 4.3 | 10.5 | 10.5 | ||||||||||||||||||||||||
Gain from sale of assets | 91.3 | — | nm | 19.0 | — | ||||||||||||||||||||||||
Operating income | 262.1 | 197.9 | 32.4 | 54.5 | 42.7 | ||||||||||||||||||||||||
Two Quarters Ended | |||||||||||||||||||||||||||||
Net revenues | $ | 958.9 | $ | 880.1 | 9.0 | % | |||||||||||||||||||||||
Product and distribution costs | 639.8 | 559.3 | 14.4 | 66.7 | % | 63.5 | % | ||||||||||||||||||||||
Other operating expenses | 25.8 | 22.0 | 17.3 | 2.7 | 2.5 | ||||||||||||||||||||||||
Depreciation and amortization expenses | 0.1 | 0.0 | nm | 0.0 | 0.0 | ||||||||||||||||||||||||
General and administrative expenses | 4.1 | 5.8 | (29.3) | 0.4 | 0.7 | ||||||||||||||||||||||||
Total operating expenses | 669.8 | 587.1 | 14.1 | 69.9 | 66.7 | ||||||||||||||||||||||||
Income from equity investees | 108.0 | 88.1 | 22.6 | 11.3 | 10.0 | ||||||||||||||||||||||||
Gain from sale of assets | 91.3 | — | nm | 9.5 | — | ||||||||||||||||||||||||
Operating income | $ | 488.4 | $ | 381.1 | 28.2 | % | 50.9 | % | 43.3 | % |
Apr 2, 2023 | Apr 3, 2022 | % Change | |||||||||||||||
Quarter Ended | |||||||||||||||||
Net revenues | $ | 3.7 | $ | 24.4 | (84.8) | % | |||||||||||
Product and distribution costs | 1.5 | 20.8 | (92.8) | ||||||||||||||
Other operating expenses | 0.1 | 4.4 | (97.7) | ||||||||||||||
Depreciation and amortization expenses | 29.3 | 32.3 | (9.3) | ||||||||||||||
General and administrative expenses | 439.7 | 328.1 | 34.0 | ||||||||||||||
Restructuring and impairments | 0.3 | — | nm | ||||||||||||||
Total operating expenses | 470.9 | 385.6 | 22.1 | ||||||||||||||
Operating loss | $ | (467.2) | $ | (361.2) | 29.3 | % | |||||||||||
Two Quarters Ended | |||||||||||||||||
Net revenues | $ | 8.2 | $ | 49.5 | (83.4) | % | |||||||||||
Product and distribution costs | 6.3 | 43.6 | (85.6) | ||||||||||||||
Other operating expenses | 0.1 | 7.4 | (98.6) | ||||||||||||||
Depreciation and amortization expenses | 58.1 | 65.2 | (10.9) | ||||||||||||||
General and administrative expenses | 835.8 | 682.6 | 22.4 | ||||||||||||||
Restructuring and impairments | 1.1 | — | nm | ||||||||||||||
Total operating expenses | 901.4 | 798.8 | 12.8 | ||||||||||||||
Operating loss | $ | (893.2) | $ | (749.3) | 19.2 | % |
Apr 2, 2023 | Oct 2, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 3,071.8 | $ | 2,818.4 | |||||||
Short-term investments | 379.4 | 364.5 | |||||||||
Accounts receivable, net | 1,185.8 | 1,175.5 | |||||||||
Inventories | 2,000.6 | 2,176.6 | |||||||||
Prepaid expenses and other current assets | 408.6 | 483.7 | |||||||||
Total current assets | 7,046.2 | 7,018.7 | |||||||||
Long-term investments | 251.2 | 279.1 | |||||||||
Equity investments | 360.5 | 311.2 | |||||||||
Property, plant and equipment, net | 6,818.6 | 6,560.5 | |||||||||
Operating lease, right-of-use asset | 8,251.6 | 8,015.6 | |||||||||
Deferred income taxes, net | 1,811.1 | 1,799.7 | |||||||||
Other long-term assets | 526.7 | 554.2 | |||||||||
Other intangible assets | 130.8 | 155.9 | |||||||||
Goodwill | 3,412.3 | 3,283.5 | |||||||||
TOTAL ASSETS | $ | 28,609.0 | $ | 27,978.4 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 1,434.0 | $ | 1,441.4 | |||||||
Accrued liabilities | 1,970.0 | 2,137.1 | |||||||||
Accrued payroll and benefits | 710.9 | 761.7 | |||||||||
Current portion of operating lease liability | 1,269.5 | 1,245.7 | |||||||||
Stored value card liability and current portion of deferred revenue | 1,795.9 | 1,641.9 | |||||||||
Short-term debt | 52.8 | 175.0 | |||||||||
Current portion of long-term debt | 1,888.7 | 1,749.0 | |||||||||
Total current liabilities | 9,121.8 | 9,151.8 | |||||||||
Long-term debt | 13,544.8 | 13,119.9 | |||||||||
Operating lease liability | 7,753.5 | 7,515.2 | |||||||||
Deferred revenue | 6,200.2 | 6,279.7 | |||||||||
Other long-term liabilities | 488.1 | 610.5 | |||||||||
Total liabilities | 37,108.4 | 36,677.1 | |||||||||
Shareholders' deficit: | |||||||||||
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,147.0 and 1,147.9 shares, respectively | 1.1 | 1.1 | |||||||||
Additional paid-in capital | 38.2 | 205.3 | |||||||||
Retained deficit | (8,024.6) | (8,449.8) | |||||||||
Accumulated other comprehensive income/(loss) | (521.6) | (463.2) | |||||||||
Total shareholders’ deficit | (8,506.9) | (8,706.6) | |||||||||
Noncontrolling interests | 7.5 | 7.9 | |||||||||
Total deficit | (8,499.4) | (8,698.7) | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) | $ | 28,609.0 | $ | 27,978.4 |
Two Quarters Ended | |||||||||||
Apr 2, 2023 | Apr 3, 2022 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net earnings including noncontrolling interests | $ | 1,763.6 | $ | 1,491.1 | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 709.3 | 777.7 | |||||||||
Deferred income taxes, net | 2.6 | 28.4 | |||||||||
Income earned from equity method investees | (109.9) | (118.7) | |||||||||
Distributions received from equity method investees | 88.0 | 100.8 | |||||||||
Gain on sale of assets | (91.3) | — | |||||||||
Stock-based compensation | 159.3 | 149.2 | |||||||||
Non-cash lease costs | 584.7 | 670.7 | |||||||||
Loss on retirement and impairment of assets | 75.6 | 77.3 | |||||||||
Other | 22.6 | (17.9) | |||||||||
Cash provided by/(used in) changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 26.2 | (62.1) | |||||||||
Inventories | 194.6 | (324.9) | |||||||||
Accounts payable | (51.2) | 133.0 | |||||||||
Deferred revenue | 54.0 | 110.2 | |||||||||
Operating lease liability | (621.8) | (766.3) | |||||||||
Other operating assets and liabilities | (445.5) | (215.7) | |||||||||
Net cash provided by operating activities | 2,360.8 | 2,032.8 | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchases of investments | (247.7) | (67.5) | |||||||||
Sales of investments | 1.9 | 72.6 | |||||||||
Maturities and calls of investments | 270.0 | 55.7 | |||||||||
Additions to property, plant and equipment | (1,002.0) | (871.9) | |||||||||
Proceeds from sale of assets | 110.0 | — | |||||||||
Other | (39.2) | (69.8) | |||||||||
Net cash used in investing activities | (907.0) | (880.9) | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Net (payments)/proceeds from issuance of commercial paper | (175.0) | — | |||||||||
Net proceeds from issuance of short-term debt | 52.8 | 17.4 | |||||||||
Repayments of short-term debt | — | (12.6) | |||||||||
Net proceeds from issuance of long-term debt | 1,497.8 | 1,498.1 | |||||||||
Repayments of long-term debt | (1,000.0) | — | |||||||||
Proceeds from issuance of common stock | 129.8 | 56.3 | |||||||||
Cash dividends paid | (1,217.4) | (1,139.2) | |||||||||
Repurchase of common stock | (479.3) | (3,997.5) | |||||||||
Minimum tax withholdings on share-based awards | (81.4) | (122.1) | |||||||||
Other | (10.7) | (9.2) | |||||||||
Net cash provided by/(used in) financing activities | (1,283.4) | (3,708.8) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 83.0 | 14.6 | |||||||||
Net increase/(decrease) in cash and cash equivalents | 253.4 | (2,542.3) | |||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||
Beginning of period | 2,818.4 | 6,455.7 | |||||||||
End of period | $ | 3,071.8 | $ | 3,913.4 | |||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest, net of capitalized interest | $ | 250.4 | $ | 236.0 | |||||||
Income taxes | $ | 636.8 | $ | 783.2 |
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||
Revenues | $5,955.8 | $5,060.9 | 18% | ||||||||||||||
Change in Comparable Store Sales (1) | 12% | 12% | |||||||||||||||
Change in Transactions | 6% | 5% | |||||||||||||||
Change in Ticket | 6% | 7% | |||||||||||||||
Store Count | 16,044 | 15,544 | 3% | ||||||||||||||
(1) Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales. | |||||||||||||||||
Quarter Ended | Change (%) | ||||||||||||||||
($ in millions) | Apr 2, 2023 | Apr 3, 2022 | |||||||||||||||
Revenues | $763.8 | $743.7 | 3% | ||||||||||||||
Change in Comparable Store Sales (1) | 3% | (23)% | |||||||||||||||
Change in Transactions | 4% | (20)% | |||||||||||||||
Change in Ticket | (1)% | (4)% | |||||||||||||||
Store Count | 6,243 | 5,654 | 10% | ||||||||||||||
(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. 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. |
Net stores opened/(closed) and transferred during the period | |||||||||||||||||||||||||||||||||||
Quarter Ended | Two Quarters Ended | Stores open as of | |||||||||||||||||||||||||||||||||
Apr 2, 2023 | Apr 3, 2022 | Apr 2, 2023 | Apr 3, 2022 | Apr 2, 2023 | Apr 3, 2022 | ||||||||||||||||||||||||||||||
North America: | |||||||||||||||||||||||||||||||||||
Company-operated stores | 91 | 54 | 131 | 93 | 10,347 | 9,954 | |||||||||||||||||||||||||||||
Licensed stores | 10 | (16) | 56 | 7 | 7,135 | 6,972 | |||||||||||||||||||||||||||||
Total North America | 101 | 38 | 187 | 100 | 17,482 | 16,926 | |||||||||||||||||||||||||||||
International: | |||||||||||||||||||||||||||||||||||
Company-operated stores | 174 | 102 | 271 | 315 | 8,308 | 7,587 | |||||||||||||||||||||||||||||
Licensed stores | 189 | 173 | 465 | 382 | 10,844 | 10,117 | |||||||||||||||||||||||||||||
Total International | 363 | 275 | 736 | 697 | 19,152 | 17,704 | |||||||||||||||||||||||||||||
Total Company | 464 | 313 | 923 | 797 | 36,634 | 34,630 | |||||||||||||||||||||||||||||
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, primarily amortization, of the acquired intangible assets for reasons discussed above. Additionally, we incur certain costs associated with certain divestiture activities. These costs are expected to 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 Seattle's Best Coffee brand, as these items do not reflect future gains or tax impacts for reasons discussed above. | ||||
Sale of certain joint venture operations and retail operations | Management excludes the gain or loss, and subsequent adjustments, if any, related to the sale of certain joint venture and retail operations as these activities were specific to the sale and for reasons discussed above. | ||||
Quarter Ended (1) | |||||||||||||||||
Consolidated | Apr 2, 2023 | Apr 3, 2022 | Change | ||||||||||||||
Operating income, as reported (GAAP) | $ | 1,327.5 | $ | 948.9 | 39.9% | ||||||||||||
Restructuring and impairment costs (2) | 8.8 | 4.4 | |||||||||||||||
Transaction and integration-related costs (3) | 0.1 | 43.1 | |||||||||||||||
Gain from sale of assets | (91.3) | — | |||||||||||||||
Non-GAAP operating income | $ | 1,245.1 | $ | 996.4 | 25.0% | ||||||||||||
Operating margin, as reported (GAAP) | 15.2 | % | 12.4 | % | 280 bps | ||||||||||||
Restructuring and impairment costs (2) | 0.1 | 0.1 | |||||||||||||||
Transaction and integration-related costs (3) | 0.0 | 0.6 | |||||||||||||||
Gain from sale of assets | (1.0) | — | |||||||||||||||
Non-GAAP operating margin | 14.3 | % | 13.0 | % | 130 bps | ||||||||||||
Diluted net earnings per share, as reported (GAAP) | $ | 0.79 | $ | 0.58 | 36.2% | ||||||||||||
Restructuring and impairment costs (2) | 0.01 | 0.00 | |||||||||||||||
Transaction and integration-related costs (3) | 0.00 | 0.04 | |||||||||||||||
Gain from sale of assets | (0.08) | — | |||||||||||||||
Gain resulting from divestiture of certain joint venture operations | — | (0.01) | |||||||||||||||
Correction of a prior year's estimated tax expense (4) | — | (0.02) | |||||||||||||||
Income tax effect on Non-GAAP adjustments (5) | 0.02 | (0.01) | |||||||||||||||
Non-GAAP EPS | $ | 0.74 | $ | 0.59 | 25.4% |
Q2 QTD FY23 | North America | International | Channel Development | Corporate and Other | Consolidated | ||||||||||||||||||
Statement of Earnings Line Item | Restructuring and Impairment Costs | Transaction and Integration-Related Costs | Transaction and Integration-Related Costs | Gain on sale of assets | Transaction and Integration-Related Costs | Restructuring and Impairment Costs | Total Non-GAAP Adjustment | ||||||||||||||||
Other operating expenses | $ | — | $ | — | $ | 0.1 | $ | — | $ | — | $ | — | $ | 0.1 | |||||||||
Restructuring and impairments | 8.5 | — | — | — | — | 0.3 | 8.8 | ||||||||||||||||
Gain on sale of assets | — | — | — | (91.3) | — | — | (91.3) | ||||||||||||||||
Total impact to operating income | $ | (8.5) | $ | — | $ | (0.1) | $ | 91.3 | $ | — | $ | (0.3) | $ | 82.4 | |||||||||
Non-Operating gain | |||||||||||||||||||||||
Interest income and other, net | $ | (7.1) |
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