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Starbucks Contact, Investor Relations:		Starbucks Contact, Media:
JoAnn DeGrande		Valerie O’Neil
206-318-7893		206-318-8953
jdegrand@starbucks.com		voneil@starbucks.com

Starbucks Reports Record Second Quarter Fiscal 2007 Results

Reaffirms Fiscal 2007 EPS Target of $0.87 to $0.89 per Share

Announces Additional Stock Repurchase Authorization of 25 Million Shares

SEATTLE; May 3, 2007 — Starbucks Corporation (NASDAQ: SBUX) today announced financial results for

its fiscal second quarter ended April 1, 2007.

Fiscal Second Quarter 2007 Highlights:

	•		Consolidated net revenues of $2.3 billion, an increase of 20 percent

	•		Net earnings of $151 million, an increase of 18 percent

	•		Net earnings per share of $0.19, compared to $0.16 per share, an increase of 19 percent

	•		560 retail store openings

	•		Comparable store sales growth of four percent, versus most difficult quarterly comparison this year

	•		International segment revenue increased by 30 percent

“We are pleased with the strength of our business — reflected by solid revenue growth and the opening of 560 new stores during the quarter,” said Jim Donald, Starbucks president and ceo. “We continue to build a solid global foundation, which will enable us to execute our strategy and realize the tremendous growth opportunities available to Starbucks. We remain committed to and believe we are well-positioned to continue building shareholder value.”

Michael Casey, Starbucks chief financial officer, commented, “During the second quarter, we demonstrated our ability to deliver solid performance and effectively manage our operations despite difficult comparisons and a more challenging cost environment this year. As a result, we recorded operating margin that was comparable to last year’s record second-quarter performance while continuing to substantially expand our business.”

Consolidated Financials and Operating Summary
Company-operated retail revenues increased 20 percent to $1.9 billion for the 13 weeks ended April 1, 2007, from $1.6 billion for the same period in fiscal 2006. The increase was primarily attributable to the opening of 1,279 new Company-operated retail stores in the last 12 months and comparable store sales growth of four percent for the quarter. The increase in comparable store sales was due to a three percent increase in the average value per transaction and a one percent increase in the number of customer transactions.

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Specialty revenues increased 16 percent to $333 million for the 13 weeks ended April 1, 2007, compared to $286 million for the corresponding period of fiscal 2006. Licensing revenues increased 16 percent to $235 million primarily due to higher product sales and royalty revenues from the opening of 1,224 new licensed retail stores in the last 12 months. Foodservice and other revenues increased 17 percent to $98 million primarily due to growth in new and existing accounts in the U.S. foodservice business.

Cost of sales including occupancy costs increased to 41.9 percent of total net revenues for the 13 weeks ended April 1, 2007, compared to 40.3 percent in the corresponding 13-week period of fiscal 2006. This increase was primarily due to a shift in sales to higher cost products, increased distribution costs due to the Company’s expanding store base and food programs, and higher rent expense attributed to growth in higher priced real estate markets.

Store operating expenses as a percentage of Company-operated retail revenues decreased to 40.6 percent for the 13 weeks ended April 1, 2007, from 41.6 percent for the corresponding period of fiscal 2006. This decrease was primarily due to higher provisions for incentive compensation in the prior year due to exceptionally strong performance.

Other operating expenses (expenses associated with the Company’s specialty operations) increased to 22.7 percent of total specialty revenues for the 13 weeks ended April 1, 2007, compared to 22.3 percent in the corresponding period of fiscal 2006. The increase was primarily due to higher marketing costs related to expansion of ready-to-drink coffee beverages in the Asia-Pacific region.

Depreciation and amortization expenses increased to $113 million for the 13 weeks ended April 1, 2007, compared to $95 million for the corresponding period of fiscal 2006. The increase was primarily due to the opening of 1,279 new Company-operated retail stores in the last 12 months. As a percentage of total net revenues, depreciation and amortization expenses were 5.0 percent for both periods.

General and administrative expenses increased to $126 million for the 13 weeks ended April 1, 2007, compared to $120 million for the corresponding period of fiscal 2006. The increase was primarily due to higher payroll-related expenditures and professional fees in support of continued global growth, partially offset by lower provisions for incentive compensation due to exceptional performance in the prior year. As a percentage of total net revenues, general and administrative expenses decreased to 5.6 percent for the 13 weeks ended April 1, 2007, from 6.3 percent for the corresponding period of fiscal 2006.

Income from equity investees increased 31 percent to $26 million for the 13 weeks ended April 1, 2007, compared to $20 million for the corresponding period of fiscal 2006. The increase was primarily from the North American Coffee Partnership, which produces ready-to-drink beverages, including Starbucks bottled Frappuccino^{^®}coffee drinks and Starbucks DoubleShot^® espresso drinks, and higher equity income from international investees.

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Operating income increased 19 percent to $241 million for the 13 weeks ended April 1, 2007, compared to $202 million for the corresponding period of fiscal 2006. Operating margin was 10.7 percent of total net revenues for both the 13 weeks ended April 1, 2007 and April 2, 2006. For the 13 weeks ended April 1, 2007, higher cost of sales including occupancy costs were offset by lower store operating expenses and lower general and administrative expenses as a percentage of total net revenues.

Interest and other income, net, decreased to expense of $0.6 million for the 13 weeks ended April 1, 2007, compared to income of $3.1 million for the corresponding period of fiscal 2006, primarily due to higher borrowings and higher interest rates on the Company’s revolving credit facility.

Income taxes for the 13 weeks ended April 1, 2007 resulted in an effective tax rate of 37.2 percent, compared to 37.9 percent for the corresponding period of fiscal 2006.

Net earnings for the 13 weeks ended April 1, 2007 increased 18 percent to $151 million from $127 million for the same period in fiscal 2006. Earnings per share increased by 19 percent to $0.19 for the 13 weeks ended April 1, 2007, compared to $0.16 per share for the comparable period in fiscal 2006.

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STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)


	13 Weeks Ended								13 Weeks Ended
	April 1,			April 2,		%			April 1,			April 2,
	2007			2006		Change			2007			2006

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

Net revenues:

Company-operated retail	$	1,922,705		$	1,599,844		20.2	%		85.2	%		84.8	%
Specialty:
Licensing		234,807			202,354		16.0			10.4			10.7
Foodservice and other		98,082			83,624		17.3			4.4			4.5

Total specialty		332,889			285,978		16.4			14.8			15.2

Total net revenues		2,255,594			1,885,822		19.6			100.0			100.0

Cost of sales including occupancy costs		944,746			760,873					41.9			40.3
Store operating expenses ^(a)		780,985			665,273					34.6			35.4
Other operating expenses ^(b)		75,661			63,648					3.4			3.4
Depreciation and amortization expenses		113,385			94,508					5.0			5.0
General and administrative expenses		126,104			119,611					5.6			6.3

Subtotal operating expenses		2,040,881			1,703,913		19.8			90.5			90.4

Income from equity investees		26,261			19,985					1.2			1.1


Operating income		240,974			201,894		19.4			10.7			10.7

Interest and other income, net		(592	)		3,063					0.0			0.2


Earnings before income taxes		240,382			204,957		17.3			10.7			10.9

Income taxes^(c)		89,542			77,641					4.0			4.1


Net earnings	$	150,840		$	127,316		18.5	%		6.7	%		6.8	%


Net earnings per common share — diluted	$	0.19		$	0.16

Weighted avg. shares outstanding — diluted		774,055			794,613


^(a)		As a percentage of related Company-operated retail revenues, store operating expenses were 40.6 percent for the 13 weeks ended April 1, 2007, and 41.6 percent for the 13 weeks ended April 2, 2006.

^(b)		As a percentage of related total specialty revenues, other operating expenses were 22.7 percent for the 13 weeks ended April 1, 2007, and 22.3 percent for the 13 weeks ended April 2, 2006.

^(c)		The effective tax rates were 37.2 percent for the 13 weeks ended April 1, 2007, and 37.9 percent for the 13 weeks ended April 2, 2006.

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STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)


	26 Weeks Ended							26 Weeks Ended
	April 1,		April 2,		%			April 1,			April 2,
	2007		2006		Change			2007			2006

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

Net revenues:

Company-operated retail	$	3,929,516	$	3,227,827		21.7	%		85.2	%		84.5	%
Specialty:
Licensing		488,729		421,504		15.9			10.6			11.0
Foodservice and other		193,072		170,583		13.2			4.2			4.5

Total specialty		681,801		592,087		15.2			14.8			15.5

Total net revenues		4,611,317		3,819,914		20.7			100.0			100.0

Cost of sales including occupancy costs		1,929,569		1,538,911					41.8			40.3
Store operating expenses ^(a)		1,552,952		1,287,439					33.7			33.6
Other operating expenses ^(b)		148,199		122,796					3.3			3.2
Depreciation and amortization expenses		223,581		185,796					4.8			4.9
General and administrative expenses		241,332		242,936					5.2			6.4

Subtotal operating expenses		4,095,633		3,377,878		21.2			88.8			88.4

Income from equity investees		45,014		39,705					1.0			1.0


Operating income		560,698		481,741		16.4			12.2			12.6

Interest and other income, net		5,847		3,411					0.1			0.1


Earnings before income taxes		566,545		485,152		16.8			12.3			12.7

Income taxes^(c)		210,753		183,680					4.6			4.8


Net earnings	$	355,792	$	301,472		18.0	%		7.7	%		7.9	%


Net earnings per common share — diluted	$	0.46	$	0.38

Weighted avg. shares outstanding — diluted		778,450		793,936


^(a)		As a percentage of related Company-operated retail revenues, store operating expenses were 39.5 percent for the 26 weeks ended April 1, 2007, and 39.9 percent for the 26 weeks ended April 2, 2006.

^(b)		As a percentage of related total specialty revenues, other operating expenses were 21.7 percent for the 26 weeks ended April 1, 2007, and 20.7 percent for the 26 weeks ended April 2, 2006.

^(c)		The effective tax rates were 37.2 percent for the 26 weeks ended April 1, 2007, and 37.9 percent for the 26 weeks ended April 2, 2006.

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Segment Results

The tables below present reportable segment results net of intersegment eliminations for the 13 and 26 weeks ended April 1, 2007 (in thousands):

United States



	April 1,		April 2,		%			April 1,			April 2,
	2007		2006		Change			2007			2006

13 Weeks Ended								As a % of U.S. total net revenues

Net revenues:
Company-operated retail	$	1,595,389	$	1,351,563		18.0	%		89.2	%		89.5	%
Specialty:
Licensing		104,790		81,451		28.7			5.8			5.4
Foodservice and other		89,251		76,584		16.5			5.0			5.1

Total specialty		194,041		158,035		22.8			10.8			10.5

Total net revenues		1,789,430		1,509,598		18.5			100.0			100.0

Cost of sales including occupancy costs		707,957		569,264					39.6			37.7
Store operating expenses ^(a)		653,791		568,088					36.5			37.6
Other operating expenses ^(b)		52,020		48,109					2.9			3.2
Depreciation and amortization expenses		84,429		69,534					4.7			4.6
General and administrative expenses		23,651		23,587					1.3			1.6

Subtotal operating expenses		1,521,848		1,278,582		19.0			85.0			84.7

Income from equity investees		—		27					0.0			0.0

Operating income	$	267,582	$	231,043		15.8	%		15.0	%		15.3	%


26 Weeks Ended
Net revenues:
Company-operated retail	$	3,255,652	$	2,722,250		19.6	%		89.2	%		89.1	%
Specialty:
Licensing		218,099		177,734		22.7			6.0			5.8
Foodservice and other		175,578		156,955		11.9			4.8			5.1

Total specialty		393,677		334,689		17.6			10.8			10.9

Total net revenues		3,649,329		3,056,939		19.4			100.0			100.0

Cost of sales including occupancy costs		1,439,078		1,156,710					39.4			37.8
Store operating expenses ^(c)		1,302,168		1,096,863					35.7			35.9
Other operating expenses ^(d)		104,145		92,216					2.9			3.0
Depreciation and amortization expenses		165,792		137,218					4.5			4.5
General and administrative expenses		45,410		45,120					1.3			1.5

Subtotal operating expenses		3,056,593		2,528,127		20.9			83.8			82.7

Income from equity investees		—		151					0.0			0.0

Operating income	$	592,736	$	528,963		12.1	%		16.2	%		17.3	%


^(a)		As a percentage of related Company-operated retail revenues, store operating expenses were 41.0% for the 13 weeks ended April 1, 2007, and 42.0% for the 13 weeks ended April 2, 2006.

^(b)		As a percentage of related total specialty revenues, other operating expenses were 26.8% for the 13 weeks ended April 1, 2007, and 30.4% for the 13 weeks ended April 2, 2006.

^(c)		As a percentage of related Company-operated retail revenues, store operating expenses were 40.0% for the 26 weeks ended April 1, 2007, and 40.3% for the 26 weeks ended April 2, 2006.

^(d)		As a percentage of related total specialty revenues, other operating expenses were 26.5% for the 26 weeks ended April 1, 2007, and 27.6% for the 26 weeks ended April 2, 2006.

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United States total net revenues increased by $280 million, or 19 percent, to $1.8 billion for the 13 weeks ended April 1, 2007, compared to $1.5 billion for the corresponding period of fiscal 2006. United States Company-operated retail revenues increased by $244 million, or 18 percent, to $1.6 billion, primarily due to the opening of 1,042 new Company-operated retail stores in the last 12 months and comparable store sales growth of three percent for the quarter resulting from a three percent increase in the average value per transaction.

Total United States specialty revenues increased by $36 million, or 23 percent, to $194 million for the 13 weeks ended April 1, 2007, compared to $158 million in the corresponding period of fiscal 2006. United States licensing revenues increased 29 percent to $105 million from $81 million in fiscal 2006 primarily due to higher product sales and royalty revenues as a result of opening 768 new licensed retail stores in the last 12 months. United States foodservice and other revenues increased by 17 percent to $89 million, from $77 million in fiscal 2006, primarily due to growth in new and existing foodservice accounts.

United States operating income increased by 16 percent to $268 million for the 13 weeks ended April 1, 2007, from $231 million for the same period in fiscal 2006. Operating margin decreased to 15.0 percent of related revenues from a record second quarter high of 15.3 percent in the corresponding period of fiscal 2006. The decrease was due to higher cost of sales including occupancy costs, primarily due to a shift in sales to higher cost products such as food and merchandise, higher rent expenses, and increased distribution costs due to expansion of the Company’s store base and food programs. Partially offsetting this was lower store operating expenses as a percentage of total net revenues, primarily resulting from higher provisions for incentive compensation in the prior year due to exceptionally strong performance.

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International



	April 1,		April 2,		%			April 1,			April 2,
	2007		2006		Change			2007			2006

13 Weeks Ended								As a % of International total net revenues

Net revenues:
Company-operated retail	$	327,316	$	248,281		31.8	%		84.5	%		83.3	%
Specialty:
Licensing		51,205		42,725		19.8			13.2			14.3
Foodservice and other		8,831		7,040		25.4			2.3			2.4

Total specialty		60,036		49,765		20.6			15.5			16.7

Total net revenues		387,352		298,046		30.0			100.0			100.0

Cost of sales including occupancy costs		189,184		144,816					48.8			48.6
Store operating expenses ^(a)		127,194		97,185					32.9			32.6
Other operating expenses ^(b)		16,769		11,376					4.3			3.8
Depreciation and amortization expenses		20,649		16,286					5.3			5.5
General and administrative expenses		25,342		18,184					6.5			6.1

Subtotal operating expenses		379,138		287,847		31.7			97.8			96.6

Income from equity investees		12,916		9,125					3.3			3.1

Operating income	$	21,130	$	19,324		9.3	%		5.5	%		6.5	%



26 Weeks Ended
Net revenues:
Company-operated retail	$	673,864	$	505,577		33.3	%		85.0	%		83.7	%
Specialty:
Licensing		101,069		85,034		18.9			12.8			14.1
Foodservice and other		17,494		13,628		28.4			2.2			2.2

Total specialty		118,563		98,662		20.2			15.0			16.3

Total net revenues		792,427		604,239		31.1			100.0			100.0

Cost of sales including occupancy costs		389,295		290,244					49.1			48.0
Store operating expenses ^(c)		250,784		190,576					31.7			31.6
Other operating expenses ^(d)		30,918		21,816					3.9			3.6
Depreciation and amortization expenses		41,114		31,295					5.2			5.2
General and administrative expenses		47,053		34,371					5.9			5.7

Subtotal operating expenses		759,164		568,302		33.6			95.8			94.1

Income from equity investees		20,940		16,903					2.6			2.8

Operating income	$	54,203	$	52,840		2.6	%		6.8	%		8.7	%


^(a)		As a percentage of related Company-operated retail revenues, store operating expenses were 38.9% for the 13 weeks ended April 1, 2007, and 39.1% for the 13 weeks ended April 2, 2006.

^(b)		As a percentage of related total specialty revenues, other operating expenses were 27.9% for the 13 weeks ended April 1, 2007, and 22.9% for the 13 weeks ended April 2, 2006.

^(c)		As a percentage of related Company-operated retail revenues, store operating expenses were 37.2% for the 26 weeks ended April 1, 2007, and 37.7% for the 26 weeks ended April 2, 2006.

^(d)		As a percentage of related total specialty revenues, other operating expenses were 26.1% for the 26 weeks ended April 1, 2007, and 22.1% for the 26 weeks ended April 2, 2006.

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International total net revenues increased by $89 million, or 30 percent, to $387 million for the 13 weeks ended April 1, 2007, compared to $298 million for the corresponding period of fiscal 2006. International Company-operated retail revenues increased by $79 million, or 32 percent, to $327 million, primarily due to the opening of 237 new Company-operated retail stores in the last 12 months, comparable store sales growth of seven percent for the quarter and favorable foreign currency exchange for the British pound sterling. The increase in comparable store sales resulted from a five percent increase in the number of customer transactions coupled with a two percent increase in the average value per transaction.

Total International specialty revenues increased by $10 million, or 21 percent, to $60 million for the 13 weeks ended April 1, 2007, compared to $50 million in the corresponding period of fiscal 2006. The increase was primarily due to higher product sales and royalty revenues from opening 456 licensed retail stores in the last 12 months and growth in new and existing foodservice accounts.

International operating income increased by nine percent to $21 million for the 13 weeks ended April 1, 2007, compared to $19 million in the corresponding period of fiscal 2006. Operating margin decreased to 5.5 percent of related revenues from 6.5 percent in the corresponding period of fiscal 2006, primarily due to higher other operating expenses and general and administrative expenses as a percentage of total net revenues resulting from increased payroll-related expenditures to support continued rapid international store growth.

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Global Consumer Products Group (CPG)



	April 1,		April 2,		%			April 1,			April 2,
	2007		2006		Change			2007			2006

13 Weeks Ended								As a % of CPG total net revenues

Net revenues:
Specialty:
Licensing	$	78,812	$	78,178		0.8	%		100.0	%		100.0	%

Total specialty		78,812		78,178		0.8			100.0			100.0

Total net revenues		78,812		78,178		0.8			100.0			100.0

Cost of sales		47,605		46,793					60.4			59.9
Other operating expenses		6,872		4,163					8.7			5.3
Depreciation and amortization expenses		21		27					0.0			0.0

Subtotal operating expenses		54,498		50,983		6.9			69.1			65.2

Income from equity investees		13,345		10,833					16.9			13.8

Operating income	$	37,659	$	38,028		(1.0	%)		47.8	%		48.6	%


26 Weeks Ended
Net revenues:
Specialty:
Licensing	$	169,561	$	158,736		6.8	%		100.0	%		100.0	%

Total specialty		169,561		158,736		6.8			100.0			100.0

Total net revenues		169,561		158,736		6.8			100.0			100.0

Cost of sales		101,196		91,957					59.7			57.9
Other operating expenses		13,136		8,764					7.8			5.6
Depreciation and amortization expenses		43		61					0.0			0.0

Subtotal operating expenses		114,375		100,782		13.5			67.5			63.5

Income from equity investees		24,074		22,651					14.2			14.3

Operating income	$	79,260	$	80,605		(1.7	%)		46.7	%		50.8	%

CPG total net revenues increased by $0.6 million, or one percent, to $79 million for the 13 weeks ended April 1, 2007, compared to $78 million for the corresponding period of fiscal 2006. The increase was primarily due to increased product sales and royalties in the International ready-to-drink business. Partially offsetting this was decreased shipments into the U.S. packaged coffee and tea distribution system, despite higher sales to grocery retailers, resulting in lower inventory levels throughout the system.

CPG operating income was $38 million for the 13 weeks ended April 1, 2007, relatively flat with the corresponding period of fiscal 2006. Operating margin decreased to 47.8 percent of related revenues, from 48.6 percent in fiscal 2006, primarily due to increased other operating expenses. The increase in other operating expenses was due to higher marketing expenditures to support continued international expansion of ready-to-drink beverages. Partially offsetting the increase in other operating expenses was higher income from equity investees, attributable to the ready-to-drink beverage business in the U.S.

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Unallocated Corporate



	April 1,			April 2,			%			April 1			April 2,
	2007			2006			Change			2007			2006

13 Weeks Ended										As a % of total net revenues

Depreciation and amortization expenses	$	8,286		$	8,661						0.4	%		0.5	%
General and administrative expenses		77,111			77,840						3.4			4.1

Operating loss	$	(85,397	)	$	(86,501	)		1.3	%		(3.8	%)		(4.6	%)


26 Weeks Ended
Depreciation and amortization expenses	$	16,632		$	17,222						0.4	%		0.4	%
General and administrative expenses		148,869			163,445						3.2			4.3

Operating loss	$	(165,501	)	$	(180,667	)		8.4	%		(3.6	%)		(4.7	%)

Unallocated corporate expenses decreased to $85 million for the 13 weeks ended April 1, 2007, compared to $87 million in the corresponding period of fiscal 2006. The decrease was primarily due to higher provisions for incentive compensation due to exceptional performance in the prior year. Total unallocated corporate expenses as a percentage of total net revenues decreased to 3.8 percent for the 13 weeks ended April 1, 2007, from 4.6 percent for the corresponding period of fiscal 2006.

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


	April 1,		October 1,
	2007		2006
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	200,179	$	312,606
Short-term investments — available-for-sale securities		77,872		87,542
Short-term investments — trading securities		65,780		53,496
Accounts receivable, net of allowances of $4,801 and $3,827, respectively		240,775		224,271
Inventories		578,877		636,222
Prepaid expenses and other current assets		124,957		126,874
Deferred income taxes, net		96,422		88,777

Total current assets		1,384,862		1,529,788

Long-term investments — available-for-sale securities		20,994		5,811
Equity and other investments		230,594		219,093
Property, plant and equipment, net		2,523,870		2,287,899
Other assets		228,128		186,917
Other intangible assets		39,942		37,955
Goodwill		208,485		161,478


TOTAL ASSETS	$	4,636,875	$	4,428,941


LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	279,960	$	340,937
Accrued compensation and related costs		301,050		288,963
Accrued occupancy costs		68,006		54,868
Accrued taxes		77,910		94,010
Short-term borrowings		847,000		700,000
Other accrued expenses		244,558		224,154
Deferred revenue		300,579		231,926
Current portion of long-term debt		769		762

Total current liabilities		2,119,832		1,935,620

Long-term debt		1,551		1,958
Other long-term liabilities		303,193		262,857

Total liabilities		2,424,576		2,200,435

Shareholders’ equity:
Common stock ($0.001 par value) — authorized, 1,200,000,000 shares; issued and outstanding, 746,057,192 and 756,602,055 shares, respectively, (includes 3,394,184 common stock units in both periods)		746		756
Other additional paid-in-capital		39,393		39,393
Retained earnings		2,121,783		2,151,084
Accumulated other comprehensive income		50,377		37,273

Total shareholders’ equity		2,212,299		2,228,506


TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,636,875	$	4,428,941

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


	26 Weeks Ended
	April 1,			April 2,
	2007			2006
OPERATING ACTIVITIES:
Net earnings	$	355,792		$	301,472
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		235,481			198,633
Provision for impairments and asset disposals		13,500			9,153
Deferred income taxes, net		(37,162	)		(57,131	)
Equity in income of investees		(24,935	)		(24,807	)
Distributions from equity investees		32,360			16,393
Stock-based compensation		52,180			51,297
Tax benefit from exercise of stock options		4,982			520
Excess tax benefit from exercise of stock options		(46,347	)		(54,872	)
Net amortization of premium on securities		432			1,209
Cash provided/(used) by changes in operating assets and liabilities:
Inventories		60,553			91,975
Accounts payable		(60,498	)		8,270
Accrued compensation and related costs		10,161			50,099
Accrued taxes		27,168			76,716
Deferred revenue		68,832			58,250
Other operating assets and liabilities		45,320			34,815

Net cash provided by operating activities		737,819			761,992

INVESTING ACTIVITIES:
Purchase of available-for-sale securities		(177,292	)		(356,681	)
Maturity of available-for-sale securities		134,712			127,604
Sale of available-for-sale securities		36,897			154,250
Acquisitions, net of cash acquired		(47,304	)		(90,219	)
Net purchases of equity, other investments and other assets		(31,143	)		(19,103	)
Net additions to property, plant and equipment		(507,202	)		(310,331	)

Net cash used by investing activities		(591,332	)		(494,480	)

FINANCING ACTIVITIES:
Proceeds from issuance of common stock		108,202			91,618
Excess tax benefit from exercise of stock options		46,347			54,872
Net borrowings/(repayments) of revolving credit facility		147,000			(182,000	)
Principal payments on long-term debt		(401	)		(372	)
Repurchase of common stock		(563,137	)		(204,186	)

Net cash used by financing activities		(261,989	)		(240,068	)
Effect of exchange rate changes on cash and cash equivalents		3,075			1,418

Net increase/(decrease) in cash and cash equivalents		(112,427	)		28,862

CASH AND CASH EQUIVALENTS:
Beginning of period		312,606			173,809


End of the period	$	200,179		$	202,671


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	14,884		$	4,444
Income taxes	$	223,653		$	167,286

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Fiscal Second Quarter 2007 Store Data

The Company’s store data for the periods presented are as follows:


	Net stores opened during the period
	13-week period				26-week period				Stores open as of
	April 1,		April 2,		April 1,		April 2,		April 1,		April 2,
	2007		2006		2007		2006		2007		2006

United States:
Company-operated Stores⁽¹⁾		271		157		553		321		6,281		5,239
Licensed Stores		142		132		365		330		3,533		2,765

		413		289		918		651		9,814		8,004

International:
Company-operated Stores ⁽¹⁾		42		54		118		114		1,553		1,316
Licensed Stores ⁽¹⁾		105		81		252		219		2,361		1,905

		147		135		370		333		3,914		3,221


Total		560		424		1,288		984		13,728		11,225


⁽¹⁾		International store data has been adjusted for the acquisition of the Beijing operations by reclassifying historical information from Licensed Stores to Company-operated Stores. United States store data was also adjusted to align with the Hawaii operations segment change by reclassifying historical information from International Company-operated stores to the United States.

Company Updates

Starbucks has recently made the following announcements:

	•		On May 1, 2007, Starbucks Board of Directors authorized the repurchase of up to 25 million shares of the Company’s common stock. This authorization is in addition to the 1.1 million shares that remained available for repurchase at May 1 under the previous authorization.

	•		In early April, the Company announced the location of its fifth roasting plant, near Columbia, S.C. Construction on the approximately 150,000 square foot facility is scheduled to begin by the end of this year. Operations are expected to begin in early 2009.

	•		On April 3, 2007, the Company named Peter Bocian as its executive vice president and chief financial officer designate, effective May 14, 2007. Effective October 1, 2007, the first day of the Company’s fiscal 2008, Bocian will succeed Michael Casey, executive vice president, chief financial officer and chief administrative officer who will transition into a senior advisory role after serving as Starbucks chief financial officer over the past 12 years.

	•		In late March 2007, Starbucks established a commercial paper program, which allows the Company to issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $1 billion. The program does not change Starbucks overall borrowing capacity, but rather serves as a cost effective alternative to the Company’s borrowings under its revolving credit facility.

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Fiscal 2007 Targets

Looking ahead, Starbucks reaffirmed its fiscal 2007 targets:

•		The Company plans to open approximately 2,400 new stores on a global basis in fiscal 2007. In the United States, Starbucks plans to open approximately 1,000 Company-operated locations and 700 licensed locations. In International markets, Starbucks plans to open approximately 300 Company-operated stores and 400 licensed stores;

•		Starbucks is targeting total net revenue growth of approximately 20 percent for the full year and comparable store sales growth remains in the target range of three percent to seven percent; and,

•		The Company continues to target earnings per share in the range of $0.87 - $0.89 for fiscal 2007.

Conference Call
Starbucks will be holding a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Howard Schultz, chairman, Jim Donald, president and ceo, and Michael Casey, executive vice president and chief financial officer. The call will be broadcast live over the Internet and can be accessed at the Company’s web site address of http://investor.starbucks.com. A replay of the call will be available via telephone through 5:30 p.m. Pacific Time on Thursday, May 10, 2007, by calling 1-800-642-1687, reservation number 4132464. A posting of speaker remarks and a replay of the call will also be available via the Investor Relations page on Starbucks.com through approximately 5:00 p.m. Pacific Time on Thursday, June 7, 2007, at the following URL: http://investor.starbucks.com.

The Company’s consolidated statements of earnings, operating segment results, and other additional information have been provided on the preceding pages in accordance with current year classifications. This information should be reviewed in conjunction with this press release. Please refer to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 14, 2006, as amended by Amendment No.1 to Annual Report on Form 10-K/A filed on December 21, 2006, for additional information.

About Starbucks
Starbucks Coffee Company provides an uplifting experience that enriches people’s lives one moment, one human being, one extraordinary cup of coffee at a time. To share in the experience, visit www.starbucks.com.

Forward - -Looking Statements
This release includes forward-looking statements about trends in or expectations regarding: store openings, comparable store sales, net revenue and earnings per share results. These forward-looking statements are 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 and currencies, 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, including the “Risk Factors” section of Starbucks Annual Report on Form 10-K for the fiscal year ended October 1, 2006. The Company assumes no obligation to update any of these forward-looking statements.

###


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

	o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

	o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit No.		Description

99.1		Earnings release of Starbucks Corporation dated May 3, 2007


	STARBUCKS CORPORATION
Dated: May 3, 2007	By:	/s/ Michael Casey
		Michael Casey
		executive vice president, chief financial officer and chief administrative officer


Exhibit
Number		Description

99.1		Earnings release of Starbucks Corporation dated May 3, 2007