Starbucks Corporation

2401 Utah Avenue South, Seattle, Washington 98134
(Address of principal executive offices)

On November 13, 2003, Starbucks Corporation issued an earnings release announcing its financial results for the 13 and 52 weeks ended September 28, 2003. A copy of the earnings release is attached as Exhibit 99.1.

The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Starbucks Announces Record Fourth Quarter and Fiscal 2003 Results
Customer Focus and Innovation Drives Highest Annual Revenues and Earnings in Company History
12th Consecutive Year of Comparable Store Sales Growth of 5% or Greater
Company Reiterates Fiscal 2004 Targets as Strong Momentum Continues

SEATTLE; November 13, 2003 — Starbucks Corporation (Nasdaq: SBUX) today announced record revenues and earnings for its fiscal fourth quarter and its 52 weeks ended September 28, 2003.

For the 13 weeks ended September 28, 2003, consolidated net revenues increased 25 percent to $1.1 billion from $865 million for the same period in fiscal 2002. Net earnings for the 13-week period ended September 28, 2003 increased 21 percent to $69.6 million from $57.7 million for the same period in fiscal 2002. Diluted earnings per share were $0.17 for the 13-week period ended September 28, 2003, compared to $0.14 for the comparable period in fiscal 2002.

For the 52 weeks ended September 28, 2003, consolidated net revenues increased 24 percent to $4.1 billion from $3.3 billion for the same period in fiscal 2002. Net earnings for the 52-week period ended September 28, 2003 increased 26 percent to $268.3 million from $212.7 million for the same period in fiscal 2002. Diluted earnings per share were $0.67 for the 52-week period ended September 28, 2003, compared to $0.54 per share for the comparable period in fiscal 2002.

Retail revenues increased 24.3 percent to $913.1 million for the 13 weeks ended September 28, 2003. The increase was primarily attributable to the opening of 602 new Company-operated retail stores, the acquisition of Seattle’s Best Coffee® and Torrefazzione Italia® stores in July, and an increase in comparable store sales of 9 percent for the period. The increase in comparable store sales was due almost entirely to an increase in customer transactions.

Specialty revenues increased 28.5 percent to $167.9 million for the 13 weeks ended September 28, 2003. The increase was primarily attributable to growth in domestic retail licensing, the acquisition of Seattle Coffee Company, and growth in the foodservice channel. The product innovations and promotions, which have driven sales in the Company-operated retail channels, have also contributed to the non-retail channels.

Cost of sales and related occupancy costs were 41.5 percent of net revenues for the 13 weeks ended September 28, 2003, compared to 41.1 percent for the corresponding period of fiscal 2002. This increase was primarily due to a shift in the non-retail revenue mix to lower margin products and higher green coffee costs. These increases were partially offset by leverage gained on fixed occupancy costs distributed over an expanded revenue base.

Store operating expenses as a percentage of retail revenues increased to 40.9 percent for the 13 weeks ended September 28, 2003, from 40.6 percent for the corresponding period of fiscal 2002. The increase was primarily due to payroll-related expenditures and was partially offset by lower provisions for asset impairment for international Company-operated retail stores.

Other operating expenses (expenses associated with the Company’s specialty operations) decreased to 26.0 percent of specialty revenues for the 13 weeks ended September 28, 2003, compared to 26.1 percent in the corresponding period of fiscal 2002, primarily due to the additional revenue streams generated by Seattle Coffee Company, partially offset by higher payroll-related expenditures for non-retail channels.

Depreciation and amortization expenses increased to $62.7 million for the 13 weeks ended September 28, 2003, from $54.4 million in the corresponding period of fiscal 2002 primarily due to the opening of additional North American and international Company-operated retail stores. As a percentage of total net revenues, depreciation and amortization decreased to 5.8 percent from 6.3 percent.

General and administrative expenses increased to $57.1 million for the 13 weeks ended September 28, 2003, from $46.7 million in the corresponding period of fiscal 2002. The increase was primarily due to higher payroll-related expenditures. However, as a percentage of total net revenues, general and administrative expenses decreased to 5.3 percent from 5.4 percent.

Income from equity investees was $17.4 million for the 13 weeks ended September 28, 2003, compared to $12.5 million in the corresponding period of fiscal 2002. The increase was primarily due to continued strong results by the North American Coffee Partnership, the Company’s 50 percent owned ready-to-drink partnership with the Pepsi-Cola Company, from expanded product lines, lower direct costs, and manufacturing efficiencies. Also contributing to the increase was the addition of two profitable equity investees, as Starbucks increased its proportionate ownership in the Taiwan and Shanghai markets to 50 percent during the fourth quarter.

Operating income increased 26.5 percent to $112.4 million for the 13 weeks ended September 28, 2003, from $88.8 million in the corresponding period of fiscal 2002, mainly due to revenue growth. The operating margin increased to 10.4 percent of total net revenues in the 13 weeks ended September 28, 2003, compared to 10.2 percent in the corresponding period of fiscal 2002, primarily due to strong revenue growth during the quarter, partially offset by a shift in the revenue mix to lower margin products and higher green coffee costs.

Interest and other income decreased to $0.8 million for the 13 weeks ended September 28, 2003, from $3.2 million in the corresponding period of fiscal 2002, primarily due to foreign currency exchange losses related to a higher volume of Euro-based transactions and the relative decline in value of the United States dollar, compared to foreign currency exchange gains in the prior period.

Income taxes for the 13 weeks ended September 28, 2003 were based on an effective tax rate of 38.5 percent, compared to 37.3 percent in the corresponding period of fiscal 2002, as a result of a shift in the composition of the Company’s pre-tax earnings in fiscal 2003. Operations based in the United States were more profitable than the prior year, and international operations, which are in various phases of development, generated greater non-deductible losses than anticipated.

•

Open approximately 1,300 new stores on a global basis. In continental North America, including Canada, the Company plans to open approximately 575 Company-operated locations and 375 licensed locations. Internationally, the Company plans to open approximately 50 locations in Company-operated markets and 300 locations in licensed markets.

•

The Company continues to target total revenue growth of approximately 20 percent, and comparable store sales growth in the range of 3-7 percent, with monthly anomalies.

•

The Company expects earnings per share of $0.83-$0.85 for fiscal 2004, including an approximately $0.02 per share benefit from a 53rd week in fiscal 2004. The entire benefit from the 53rd week will occur in fourth quarter 2004. On a quarterly basis, we expect year-over-year earnings per share growth of approximately 20 percent in the first three quarters of 2004, and approximately 40 percent in Q4 2004.

In addition, Starbucks expects the effective tax rate to be 38.0 percent for fiscal 2004. The Company is planning for capital expenditures to be in the range of $450 to $475 million.

Starbucks will be holding a conference call today at 1:30 p.m. Pacific time, which will be hosted by Orin Smith, president and chief executive officer, Michael Casey, executive vice president and chief financial officer, and Jim Donald, president, North America. The call will be broadcast live over the Internet and can be accessed at the Company’s web site address of http://www.starbucks.com/aboutus/investor.asp. A replay of the call will be available from approximately 4:30 p.m. Pacific time today through 4:30 p.m. Pacific time on November 20, 2003, by calling 1-800-642-1687, reservation number 3382397, or by accessing it via the Company’s web site at http://www.starbucks.com/aboutus/investor.asp.

The Company’s consolidated financial statements, operating segment results, and other additional information have been provided on the following pages in accordance with current year classifications, and should be reviewed in conjunction with this press release.


		13 Weeks Ended							13 Weeks Ended

		September 28, 2003		September 29, 2002		% Change			September 28, 2003			September 29, 2002

		(in thousands, except per share data)
									As a % of total net revenues
									(unless otherwise indicated)

Net revenues:
	Retail	$	913,066	$	734,543		24.3	%		84.5	%		84.9	%
	Specialty		167,948		130,655		28.5	%		15.5	%		15.1	%

Total net revenues			1,081,014		865,198		24.9	%		100.0	%		100.0	%
Cost of sales and related occupancy costs			448,960		355,500					41.5	%		41.1	%
Store operating expenses			373,663		298,187					^(a) 40.9	%		^(a) 40.6	%
Other operating expenses			43,658		34,041					^(b) 26.0	%		^(b) 26.1	%
Depreciation and amortization expenses			62,697		54,411					5.8	%		6.3	%
General and administrative expenses			57,071		46,721					5.3	%		5.4	%
Income from equity investees			17,401		12,465					1.6	%		1.4	%

	Operating income		112,366		88,803		26.5	%		10.4	%		10.2	%
Interest and other income, net			772		3,216					0.1	%		0.4	%

	Earnings before income taxes		113,138		92,019					10.5	%		10.6	%
Income taxes			43,542		34,339					4.1	%		3.9	%

Net earnings		$	69,596	$	57,680		20.7	%		6.4	%		6.7	%

Net earnings per common share - diluted		$	0.17	$	0.14

Weighted average shares outstanding - diluted			404,500		399,227


		52 Weeks Ended							52 Weeks Ended

		September 28, 2003		September 29, 2002		% Change			September 28, 2003			September 29, 2002

		(in thousands, except per share data)
									As a % of total net revenues
									(unless otherwise indicated)

Net revenues:
	Retail	$	3,449,624	$	2,792,904		23.5	%		84.6	%		84.9	%
	Specialty		625,898		496,004		26.2	%		15.4	%		15.1	%

Total net revenues			4,075,522		3,288,908		23.9	%		100.0	%		100.0	%
Cost of sales and related occupancy costs			1,685,928		1,350,011					41.4	%		41.0	%
Store operating expenses			1,390,086		1,121,108					^(a) 40.3	%		^(a) 40.1	%
Other operating expenses			167,543		127,178					^(b) 26.8	%		^(b) 25.6	%
Depreciation and amortization expenses			237,807		205,557					5.8	%		6.3	%
General and administrative expenses			207,841		202,161					5.1	%		6.1	%
Income from equity investees			38,396		33,445					0.9	%		1.0	%

	Operating income		424,713		316,338		34.3	%		10.4	%		9.6	%
Interest and other income, net			11,622		9,300					0.3	%		0.3	%
Gain on sale of Starbucks Japan shares			—		13,361					0.0	%		0.4	%

	Earnings before income taxes		436,335		338,999					10.7	%		10.3	%
Income taxes			167,989		126,313					4.1	%		3.8	%

Net earnings		$	268,346	$	212,686		26.2	%		6.6	%		6.5	%

Net earnings per common share - diluted		$	0.67	$	0.54

Weighted average shares outstanding - diluted			401,648		397,526

The following reconciliation of net earnings and earnings per share is provided to assist the reader with understanding the financial impact of one-time items:


	52 Weeks Ended								52 Weeks Ended

(unaudited and in thousands, except per share data)	September 28, 2003		September 29, 2002			% Change			September 28, 2003		September 29, 2002

Net earnings, as reported above	$	268,346	$	212,686			26.2	%	$	0.67	$	0.54
Gain on sale of Starbucks Japan shares (net of tax)		—		(8,417	)					—		(0.02	)
Settlement charge included in general and administrative expenses (net of tax)		—		11,340						—		0.02

Net earnings, excluding one-time items	$	268,346	$	215,609			24.5	%	$	0.67	$	0.54

STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)


			September 28,		September 29,
			2003		2002

			(unaudited)
ASSETS
Current assets:
	Cash and cash equivalents		$	200,907	$	99,677
	Short-term investments — Available-for-sale securities			128,905		217,302
	Short-term investments — Trading securities			20,199		10,360
	Accounts receivable, net of allowances of $4,809 and $3,680, respectively			111,704		97,573
	Inventories			342,944		263,174
	Prepaid expenses and other current assets			55,173		42,351
	Deferred income taxes, net			61,453		42,206

		Total current assets		921,285		772,643
Long-term investments — Available-for-sale securities				136,159		—
Equity and other investments				144,257		102,538
Property, plant and equipment, net				1,384,902		1,265,756
Other assets				52,113		43,691
Goodwill and other intangible assets				91,030		29,764

	TOTAL ASSETS		$	2,729,746	$	2,214,392

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
	Accounts payable		$	168,984	$	135,994
	Accrued compensation and related costs			152,608		105,899
	Accrued occupancy costs			56,179		51,195
	Accrued taxes			54,934		54,244
	Other accrued expenses			101,800		72,289
	Deferred revenue			73,476		42,264
	Current portion of long-term debt			722		710

		Total current liabilities		608,703		462,595
Deferred income taxes, net				33,217		22,496
Long-term debt				4,354		5,076
Other long-term liabilities				1,045		1,036
Shareholders’ equity:
	Common stock and additional paid-in capital — Authorized, 600,000,000; issued and outstanding, 393,692,536 and 388,228,592 shares, respectively, (includes 1,697,100 common stock units in both periods)			959,103		891,040
	Other additional paid-in-capital			39,393		39,393
	Retained earnings			1,069,683		801,337
	Accumulated other comprehensive income (loss)			14,248		(8,581	)

		Total shareholders’ equity		2,082,427		1,723,189

	TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	2,729,746	$	2,214,392

STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)


				52 Weeks Ended

				September 28, 2003			September 29, 2002

OPERATING ACTIVITIES:
Net earnings				$	268,346		$	212,686
Adjustments to reconcile net earnings to net cash provided by operating activities:
		Depreciation and amortization			259,271			221,141
		Gain on sale of investment			—			(13,361	)
		Provision for impairments and asset disposals			7,784			26,852
		Deferred income taxes, net			(5,932	)		(6,088	)
		Equity in income of investees			(22,813	)		(19,584	)
		Tax benefit from exercise of non-qualified stock options			36,589			44,199
		Net accretion of discount and amortization of premium on marketable securities			5,996			—
		Cash provided/(used) by changes in operating assets and liabilities:
			Inventories		(64,768	)		(41,379	)
			Prepaid expenses and other current assets		(12,861	)		(12,460	)
			Accounts payable		24,990			5,463
			Accrued compensation and related costs		42,132			24,087
			Accrued occupancy costs		4,293			15,343
			Deferred revenue		30,732			15,321
			Other operating assets and liabilities		(4,568	)		5,465

Net cash provided by operating activities					569,191			477,685
INVESTING ACTIVITIES:
	Purchase of available-for-sale securities				(323,331	)		(339,968	)
	Maturity of available-for-sale securities				180,687			78,349
	Sale of available-for-sale securities				88,889			144,760
	Purchase of Seattle Coffee Company, net of cash acquired				(72,672	)		—
	Net additions to equity, other investments and other assets				(47,259	)		(15,841	)
	Distributions from equity investees				28,966			22,834
	Additions to property, plant and equipment				(357,282	)		(375,474	)

Net cash used by investing activities					(502,002	)		(485,340	)
FINANCING ACTIVITIES:
	Proceeds from issuance of common stock				107,183			107,467
	Principal payments on long-term debt				(710	)		(697	)
	Repurchase of common stock				(75,710	)		(52,248	)

Net cash provided by financing activities					30,763			54,522
Effect of exchange rate changes on cash and cash equivalents					3,278			1,560

Net increase in cash and cash equivalents					101,230			48,427
CASH AND CASH EQUIVALENTS:
Beginning of period					99,677			51,250

End of the period				$	200,907		$	99,677

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
	Interest			$	265		$	303
	Income taxes			$	140,107		$	105,339

Starbucks Corporation is organized into a number of business units that correspond to the Company’s two operating segments: North American Retail and Business Alliances, which includes North American store licensing and foodservice accounts. All other business units include international retail, international store licensing, grocery channel licensing, warehouse club accounts, interactive operations, equity investees and other initiatives.

The tables below present net revenues, operating income by operating segment and operating income as a percentage of related revenues, net of intersegment eliminations for the periods indicated:


							All other
	North American			Business			business			Unallocated
13 weeks ended	Retail			Alliances			units			corporate ^(b)			Total

September 28, 2003
Total net revenues ^(a)	$	832,284		$	81,624		$	167,106		$	—		$	1,081,014
Operating income		128,003			15,388			34,509			(65,534	)		112,366
Operating income as a percentage of related revenues		15.4	%		18.9	%		20.7	%		—			10.4	%

September 29, 2002
Total net revenues ^(a)	$	674,345		$	58,725		$	132,128		$	—		$	865,198
Operating income		109,447			14,501			17,625			(52,770	)		88,803
Operating income as a percentage of related revenues		16.2	%		24.7	%		13.3	%		—			10.2	%

52 weeks ended
September 28, 2003
Total net revenues ^(a)	$	3,159,225		$	302,396		$	613,901		$	—		$	4,075,522
Operating income		521,795			60,892			81,223			(239,197	)		424,713
Operating income as a percentage of related revenues		16.5	%		20.1	%		13.2	%		—			10.4	%

September 29, 2002
Total net revenues ^(a)	$	2,583,756		$	222,410		$	482,742		$	—		$	3,288,908
Operating income		432,513			56,605			60,527			(233,307	)		316,338
Operating income as a percentage of related revenues		16.7	%		25.5	%		12.5	%		—			9.6	%

^(a) Included in all other business units are revenues for the Company’s international retail business unit of $80,782 and $60,198 for the 13 weeks ended September 28, 2003 and September 29, 2002, respectively, and $290,399 and $209,148 for the 52 weeks ended September 28, 2003 and September 29, 2002, respectively. Revenues for both North American Retail and international retail are reflected in “Retail” revenues, and all other revenues are included in “Specialty” revenues on the accompanying consolidated statements of earnings.

North American Retail revenues increased 23.4 percent, to $832.3 million for the 13 weeks ended September 28, 2003, from $674.3 million for the corresponding period of fiscal 2002, primarily due to the opening of new retail stores, an increase in comparable store sales of 9 percent and the July 2003 acquisition of 49 Seattle’s Best Coffee LLC and 21 Torrefazione Italia LLC stores. The increase in comparable store sales was due almost entirely to higher transaction volume, driven by product innovation and speed of service initiatives. Operating income increased 17.0 percent to $128.0 million for the 13 weeks ended September 28, 2003, from $109.4 million in the corresponding period in 2002. Operating margin decreased from 16.2 percent in the prior year to 15.4 percent, primarily due to a continuing trend of increasing green coffee costs as well as higher payroll-related expenditures.

Business Alliances revenues increased 39.0 percent, to $81.6 million for the 13 weeks ended September 28, 2003, from $58.7 million in the corresponding period in fiscal 2002, primarily due to the opening of 323 new licensed stores predominantly in supermarkets, and the resulting increase in product sales to and royalty revenues from those licensees. Growth in the foodservice channel also contributed to the increase primarily due to the addition of new accounts and additional sales of non-coffee items, such as packaged food and tea products. Operating income increased 6.1 percent to $15.4 million for the 13 weeks ended September 28, 2003, from $14.5 million in the corresponding period in fiscal 2002. Operating margin decreased to 18.9 percent of related revenues from 24.7 percent in the prior year due to continued investments to restructure distribution channels and the change in sales mix to lower margin products.

Revenues for all other business units increased 26.5 percent, to $167.1 million for the 13 weeks ended September 28, 2003, from $132.1 million for the corresponding period of fiscal 2002. The increase was mainly due to 34.2 percent revenue growth for international retail operations, attributable to 67 new Company-operated retail stores and 9 percent comparable store sales growth, as well as the addition of Seattle Coffee Company non-retail channels. Operating income increased by 95.8 percent to $34.5 million for the 13 weeks ended September 28, 2003, from $17.6 million in the corresponding period in 2002, primarily due to improved performance in international retail, the North American Coffee Partnership, international licensing and the addition of Seattle Coffee Company non-retail operations. Operating margin increased to 20.7 percent from 13.3 percent in the prior year.

Starbucks is currently evaluating a reorganization of its operating segments into two geographically distinct operations: United States and International. Starbucks plans to finalize these changes and prepare comparable segment data for prior periods in its annual report on Form 10-K.

During fiscal 2003, Starbucks increased its equity ownership to 50 percent for several of its international licensed operations, which enabled the Company to exert significant influence over their operating and financial policies. For these operations, consisting of Shanghai, Spain, and Taiwan, management determined that a change in accounting method, from the cost method to the equity method, was required. This accounting change included adjusting information reported prior to the 13-week period ended September 28, 2003, for the Company’s proportionate share of net losses as required by Accounting Principles Board Opinion No. 18, “The Equity Method of Accounting for Investments in Common Stock.”

As shown in the table below, the cumulative effect of the accounting change to the equity method resulted in a $0.1 million reduction of previously reported net earnings for the first three fiscal quarters of 2003. The restatements below include the accounting changes for Shanghai, Spain and Taiwan. These amounts are subsequent to the accounting changes for Switzerland and Austria, which were included in the Company’s fiscal second quarter earnings release:


										39 weeks
	13 weeks ended									ended

(in thousands, except earnings per share)	December 29,			March 30,			June 29,			June 29,
	2002			2003			2003			2003

Net earnings, previously reported	$	78,406		$	52,051		$	68,414		$	198,871
Effect of change to equity method		(44	)		(19	)		(59	)		(122	)

Net earnings, as restated	$	78,362		$	52,032		$	68,355		$	198,749

Net earnings per common share — basic:
Previously reported	$	0.21		$	0.13		$	0.17		$	0.51

As restated	$	0.20		$	0.13		$	0.17		$	0.51

Net earnings per common share — diluted:
Previously reported	$	0.20		$	0.13		$	0.17		$	0.50

As restated	$	0.20		$	0.13		$	0.17		$	0.50

Similarly, reductions of net earnings of $0.1 million for both the 52 weeks ended September 29, 2002 and September 30, 2001, have also been recorded. For fiscal years prior to 2001, the total impact of the accounting changes was a reduction of net earnings of $0.2 million. The following table summarizes the effects of the investment accounting change on net earnings and earnings per share for the periods indicated.


		13 weeks ended											52 weeks ended

(in thousands, except earnings per share)		December 30, 2001			March 31, 2002		June 30, 2002			September 29, 2002			September 29, 2002			September 30, 2001

Net earnings, previously reported		$	67,720		$	31,723	$	55,668		$	57,688		$	212,799		$	180,426
Effect of change to equity method			(11	)		18		(112	)		(8	)		(113	)		(91	)

Net earnings, as restated		$	67,709		$	31,741	$	55,556		$	57,680		$	212,686		$	180,335

Net earnings per common share - basic:
	Previously reported	$	0.18		$	0.08	$	0.14		$	0.15		$	0.55		$	0.48

	As restated	$	0.18		$	0.08	$	0.14		$	0.15		$	0.55		$	0.47

Net earnings per common share - diluted:
	Previously reported	$	0.17		$	0.08	$	0.14		$	0.14		$	0.54		$	0.46

	As restated	$	0.17		$	0.08	$	0.14		$	0.14		$	0.54		$	0.46

On July 14, 2003, Starbucks completed its acquisition of Seattle Coffee Company from AFC Enterprises, Inc., in an-all cash transaction of approximately $73 million. Seattle Coffee Company includes the Seattle’s Best Coffee® (“SBC”) and Torrefazione Italia® Coffee (“TI”) brands, which complements the Company’s existing portfolio of products. Included in stores open as of September 28, 2003, are 43 SBC and 21 TI Company-operated stores and 74 SBC franchised stores.

The following table summarizes the number of net new Starbucks Company-operated and licensed retail stores opened in fiscal 2003, as well as total Company store count for the 52-week period ended September 28, 2003. Total Company store count includes Seattle’s Best Coffee® and Torrefazione Italia® stores acquired on July 14, 2003:

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world, with more than 7,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its retail operations, the Company produces and sells bottled Frappuccino® coffee drinks, Starbucks DoubleShot™ coffee drink, and a line of superpremium ice creams through its joint venture partnerships. The Company’s brand portfolio provides a wide variety of consumer products. Tazo Tea’s line of innovative premium teas and Hear Music’s exceptional compact discs enhance the Starbucks Experience through best-of-class products. The Seattle’s Best Coffee® and Torrefazione Italia® Coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, including anticipated store openings, comparable store sales expectations, trends in or expectations regarding the Company’s revenue and expense growth, capital expenditures, effective tax rate, net earnings and earnings per share results, are all based on currently available operating, financial, and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors including but not limited to, coffee, dairy and other raw material prices and availability, successful execution of internal performance and expansion plans, fluctuations in U.S. and international economies, ramifications from the war on terrorism, or other international events or developments, the impact of initiatives by competitors, the effect of legal proceedings, and other risks detailed in the Company’s filings with the Securities and Exchange Commission.


	Item 12. Results of Operations and Financial Condition.
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1


	STARBUCKS CORPORATION

Dated: November 13, 2003

	By:	/s/ MICHAEL CASEY Michael Casey executive vice president and chief financial officer

		Signing on behalf of the registrant and as principal financial officer


Exhibit
Number		Description

99.1		Earnings Release of Starbucks Corporation dated November 13, 2003.


		Net Starbucks		Total Company
		stores opened		stores open

Continental North America:
	Company-operated Stores		535		4,095
	Licensed Stores		323		1,475

			858		5,570
International:
	Company-operated Stores		67		451
	Licensed Stores		276		1,204

			343		1,655

Total			1,201		7,225

Table of Contents

Table of Contents

Table of Contents


Washington (State or Other Jurisdiction of Incorporation or Organization)		0-20322 (Commission File Number)		91-1325671 (IRS Employer Identification No.)


		For Immediate Release Contact: Mary Ellen Fukuhara Starbucks Investor Relations (206) 318-4025