UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of The
Securities
Exchange Act of 1934
Date of
Report (Date of earliest event reported):
April
26, 2012
STARBUCKS CORPORATION
(Exact
Name of Registrant as Specified in its Charter)
Washington |
0-20322 |
91-1325671 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number)
|
(IRS Employer Identification No.) |
2401 Utah Avenue South, Seattle, Washington 98134 |
(Address of Principal Executive Offices) |
(206)
447-1575
(Registrant’s
Telephone Number, including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ 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))
Item 2.02 Results of Operations and Financial Condition.
On April 26, 2012, Starbucks Corporation issued a press release announcing its financial results for the quarter ended April 1, 2012. A copy of the press release is attached as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description | |
99.1 | Earnings release of Starbucks Corporation dated April 26, 2012 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
STARBUCKS CORPORATION |
||||
(Registrant) | ||||
Date: |
April 26, 2012 |
By: |
/s/ Troy Alstead |
|
Troy Alstead |
||||
chief financial officer and chief administrative officer |
EXHIBIT INDEX
Exhibit No. |
Description | |
99.1 |
Earnings release of Starbucks Corporation dated April 26, 2012 |
Exhibit 99.1
Starbucks Reports Record Second Quarter Fiscal 2012 Results
Strong Traffic Drives Global Comparable Store Sales Growth of 7%
China Delivers Seventh Consecutive Quarter of Comparable Store Sales Growth Exceeding 20%
Total Net Revenues Increase 15%
EPS Grows 18% to a Q2 Record of $0.40
Company Increases Earnings Targets for Fiscal 2012
SEATTLE--(BUSINESS WIRE)--April 26, 2012--Starbucks Corporation (NASDAQ:SBUX) today reported financial results for its 13-week fiscal second quarter ended April 1, 2012.
Fiscal Second Quarter 2012 Highlights:
"Starbucks record Q2 performance demonstrates the strength of our business, the increasing power and global relevance of our brand and the success of our unique Blueprint for Profitable Growth business strategy," said Howard Schultz, chairman, president and ceo. "In Q2 we expanded our retail presence, recorded our seventh consecutive quarter of over 20% sales growth in China, introduced new products into multiple channels and more than offset high legacy commodity costs through increased efficiencies. I could not be more excited or more optimistic about the future of our company as we pursue disciplined, profitable growth all around the world," Schultz added.
“Starbucks delivered strong growth in the fiscal second quarter, again demonstrating the value of our evolving diversified business model. Revenue growth was driven by continued strong global same store sales and an increasing contribution from our Channel Development segment,” commented Troy Alstead, cfo. “On the strength of our business and recent trends, we are accelerating new store growth in fiscal 2012 to approximately 1,000 net new stores globally, and raising our earnings targets for the year. With coffee cost pressures easing in the second half of the year and momentum building from investments in our growth initiatives, we are well positioned to deliver on our aggressive targets.”
Second Quarter Fiscal 2012 Summary
Quarter Ended Apr 1, 2012 | ||||||
Comparable Store Sales(1) | Sales Growth | Change in Transactions | Change in Ticket | |||
Consolidated | 7% | 6% | 1% | |||
Americas | 8% | 7% | 1% | |||
EMEA | (1%) | 0% | 0% | |||
CAP | 18% | 14% | 4% | |||
(1) Includes only Starbucks company-operated stores open 13 months or longer. |
Operating Results | Quarter Ended | |||||
($ in millions, except per share amounts) | Apr 1, 2012 | Apr 3, 2011 | Change | |||
Net New Stores | 176 | (146) | 322 | |||
Revenues | $3,195.9 | $2,785.7 | 15% | |||
Operating Income | $430.4 | $376.1 | 14% | |||
Operating Margin | 13.5% | 13.5% | 0 bps | |||
EPS | $0.40 | $0.34 | 18% |
Consolidated net revenues reached a second-quarter record $3.2 billion in Q2 FY12, an increase of 15% over Q2 FY11. The increase was primarily due to a 7% increase in global comparable stores sales and 57% revenue growth in Channel Development. The 7% increase in comparable store sales was comprised of a 6% increase in the number of transactions and a 1% increase in average ticket.
Consolidated operating income increased 14% to $430.4 million in Q2 FY12, compared to $376.1 million for the same period a year ago. Operating margin was 13.5% in Q2 FY12, which was equal to the same period last year. Sales leverage offset the increase in commodity costs, primarily coffee, which negatively impacted Q2 FY12 operating income and operating margin by approximately $63.5 million and 200 basis points, respectively, compared to the same period in the prior year. A recent court ruling relating to state unclaimed property laws resulted in higher unredeemed gift card income in the interest and other income line in the quarter, compared to the same period a year ago.
Q2 Americas Segment Results
Quarter Ended | ||||||
($ in millions) | Apr 1, 2012 | Apr 3, 2011 | Change | |||
Net New Stores | 76 | (211) | 287 | |||
Revenues | $2,374.7 | $2,164.8 | 10% | |||
Operating Income | $463.0 | $419.9 | 10% | |||
Operating Margin | 19.5% | 19.4% | 10 bps |
Net revenues for the Americas segment were $2.4 billion in Q2 FY12, an increase of 10% over Q2 FY11. The increase was primarily due to an 8% increase in comparable store sales, including a 7% increase in the number of transactions and a 1% increase in average ticket. Additionally, licensed store revenue growth of approximately 27% contributed to the Americas segment results.
Operating income increased to $463.0 million in Q2 FY12, compared to $419.9 million for the same period a year ago. Operating margin increased 10 basis points to 19.5% in Q2 FY12. The margin expansion was due to increased sales leverage offset by the increase in commodity costs, primarily coffee.
Q2 EMEA Segment Results
Quarter Ended | ||||||
($ in millions) | Apr 1, 2012 | Apr 3, 2011 | Change | |||
Net New Stores | 17 | 9 | 8 | |||
Revenues | $272.4 | $239.7 | 14% | |||
Operating Income / (Loss) | ($5.5) | $7.7 | nm | |||
Operating Margin | (2.0%) | 3.2% | (520) bps |
Net revenues for the EMEA segment were $272.4 million in Q2 FY12, an increase of 14% over Q2 FY11. The increase was primarily due to incremental revenues from the consolidation of the Switzerland and Austria markets. Comparable store sales declined by 1% with slight decreases in both transactions and average ticket.
EMEA reported an operating loss of $5.5 million in Q2 FY12, compared to operating income of $7.7 million for the same period a year ago. Operating margin decreased 520 basis points to (2.0%) compared to 3.2% in the prior-year period. The margin contraction was primarily driven by higher costs related to the transition to a consolidated distribution model in the UK and investments to support new regional strategic initiatives.
Q2 China/Asia Pacific Segment Results
Quarter Ended | ||||||
($ in millions) | Apr 1, 2012 | Apr 3, 2011 | Change | |||
Net New Stores | 83 | 56 | 27 | |||
Revenues | $174.6 | $131.8 | 32% | |||
Operating Income | $69.5 | $43.7 | 59% | |||
Operating Margin | 39.8% | 33.2% | 660 bps |
Net revenues for the China/Asia Pacific segment were $174.6 million in Q2 FY12, an increase of 32% over Q2 FY11. The increase was due to incremental revenues from 98 net new company-operated store openings over the last 12 months, and an 18% increase in comparable store sales. The 18% increase in comparable store sales was the result of a 14% increase in the number of transactions and a 4% increase in average ticket.
Operating income increased to $69.5 million in Q2 FY12, compared to $43.7 million for the same period a year ago. Operating margin was 39.8% in Q2 FY12 compared to 33.2% in the prior-year period. The margin expansion was primarily driven by increased sales leverage and increased income from our joint venture operations, partially offset by higher commodity costs.
Q2 Channel Development Segment Results
Quarter Ended | ||||||
($ in millions) | Apr 1, 2012 | Apr 3, 2011 | Change | |||
Revenues | $321.5 | $204.7 | 57% | |||
Operating Income | $81.7 | $67.2 | 22% | |||
Operating Margin | 25.4% | 32.8% | (740) bps |
Channel Development net revenues were $321.5 million in Q2 FY12, an increase of 57% over Q2 FY11. The increase was primarily due to sales of Starbucks- and Tazo-branded K-Cup® portion packs and the benefit of recognizing the full revenue from packaged coffee sales under the direct distribution model. March 2012 marked the one-year anniversary of the packaged coffee transition.
Channel Development operating income was $81.7 million in Q2 FY12 compared to $67.2 million for the same period a year ago. Operating margin was 25.4% in Q2 FY12 compared to 32.8% in the prior-year period. The margin contraction was mainly due to higher commodity costs, primarily coffee, which negatively impacted Q2 FY12 operating income and operating margin by approximately $20.0 million and 620 basis points, respectively, compared to the same period in the prior year.
YTD Financial Results
Two Quarters Ended Apr 1, 2012 | ||||||
Comparable Store Sales(1) | Sales Growth | Change in Transactions | Change in Ticket | |||
Consolidated | 8% | 7% | 1% | |||
Americas | 8% | 7% | 1% | |||
EMEA | 1% | 1% | 0% | |||
CAP | 19% | 14% | 4% | |||
(1) Includes only Starbucks company-operated stores open 13 months or longer. |
Two Quarters Ended | ||||||
($ in millions, except per share amounts) | Apr 1, 2012 | Apr 3, 2011 | Change | |||
Net New Stores(1) | 417 | 5 | 412 | |||
Revenues | $6,631.8 | $5,736.5 | 16% | |||
Operating Income | $986.4 | $878.0 | 12% | |||
Operating Margin | 14.9% | 15.3% | (40) bps | |||
EPS | $0.90 | $0.79 | 14% | |||
(1) Net new stores for the first two quarters of fiscal 2011 includes the closure of 228 licensed Seattle's Best Coffee locations in Borders Bookstores. |
Fiscal 2012 Targets
Starbucks has updated the following Fiscal 2012 targets:
Company Updates
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, president and ceo and Troy Alstead, cfo. 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 9:00 p.m. Pacific Time on Friday, April 27, 2012 by calling 1-855-859-2056, reservation number 38989370. 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 Friday, May 25, 2012 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 following 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 for the fiscal year ended October 2, 2011 for additional information.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
Forward-Looking Statements
This release contains forward-looking statements relating to certain company initiatives, strategies and plans, as well as trends in or expectations regarding, earnings per share, revenues, operational improvements and efficiencies, diversified business model, changes to the organizational and leadership structures, business momentum, growth and growth opportunities overall and of specific businesses and markets, sales leverage, store traffic, average ticket, operating margins, profits, comparable store sales, store openings and closings, the strength, health and potential of our business and brand, product innovations and store experience, tax rate and commodity costs and their impact. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results may differ materially depending on a variety of factors including, but not limited to, coffee, dairy and other raw material prices and availability, costs associated with, and the successful execution of, the company’s initiatives, strategies and plans, the acceptance of the company’s products by our customers, fluctuations in U.S. and international economies and currencies, the impact of competition, the effect of legal proceedings, and other risks detailed in the company 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 2, 2011. The company assumes no obligation to update any of these forward-looking statements.
STARBUCKS CORPORATION | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||||||||
(unaudited, in millions, except per share data) | |||||||||||||||||||||||
Quarter Ended | Quarter Ended | ||||||||||||||||||||||
April 1, | April 3, | % | April 1, | April 3, | |||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | |||||||||||||||||||
As a % of total net revenues | |||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Company-operated stores | $ | 2,521.2 | $ | 2,293.5 | 9.9 | % | 78.9 | % | 82.3 | % | |||||||||||||
Licensed stores | 290.3 | 237.8 | 22.1 | 9.1 | 8.5 | ||||||||||||||||||
CPG, foodservice and other | 384.4 | 254.4 | 51.1 | 12.0 | 9.1 | ||||||||||||||||||
Total net revenues | 3,195.9 | 2,785.7 | 14.7 | 100.0 | 100.0 | ||||||||||||||||||
Cost of sales including occupancy costs | 1,411.9 | 1,171.2 | 20.6 | 44.2 | 42.0 | ||||||||||||||||||
Store operating expenses | 956.5 | 867.2 | 10.3 | 29.9 | 31.1 | ||||||||||||||||||
Other operating expenses | 105.3 | 98.9 | 6.5 | 3.3 | 3.6 | ||||||||||||||||||
Depreciation and amortization expenses | 137.1 | 129.0 | 6.3 | 4.3 | 4.6 | ||||||||||||||||||
General and administrative expenses | 206.9 | 181.6 | 13.9 | 6.5 | 6.5 | ||||||||||||||||||
Total operating expenses | 2,817.7 | 2,447.9 | 15.1 | 88.2 | 87.9 | ||||||||||||||||||
Income from equity investees | 52.2 | 38.3 | 36.3 | 1.6 | 1.4 | ||||||||||||||||||
Operating income | 430.4 | 376.1 | 14.4 | 13.5 | 13.5 | ||||||||||||||||||
Interest income and other, net | 35.3 | 19.9 | 77.4 | 1.1 | 0.7 | ||||||||||||||||||
Interest expense | (8.8 | ) | (7.1 | ) | 23.9 | (0.3 | ) | (0.3 | ) | ||||||||||||||
Earnings before income taxes | 456.9 | 388.9 | 17.5 | 14.3 | 14.0 | ||||||||||||||||||
Income taxes | 146.8 | 126.5 | 16.0 | 4.6 | 4.5 | ||||||||||||||||||
Net earnings including noncontrolling interest | 310.1 | 262.4 | 18.2 | 9.7 | 9.4 | ||||||||||||||||||
Net earnings attributable to noncontrolling interest | 0.2 | 0.8 | (75.0 | ) | 0.0 | 0.0 | |||||||||||||||||
Net earnings attributable to Starbucks | $ | 309.9 | $ | 261.6 | 18.5 | % | 9.7 | % | 9.4 | % | |||||||||||||
Net earnings per common share - diluted | $ | 0.40 | $ | 0.34 | 17.6 | % | |||||||||||||||||
Weighted avg. shares outstanding - diluted | 773.3 | 771.8 | |||||||||||||||||||||
Cash dividends declared per share | $ | 0.17 | $ | 0.13 | |||||||||||||||||||
Supplemental Ratios: | |||||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 37.9 | % | 37.8 | % | |||||||||||||||||||
Effective tax rate including noncontrolling interest | 32.1 | % | 32.5 | % |
STARBUCKS CORPORATION | ||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||||||||
(unaudited, in millions, except per share data) | ||||||||||||||||||||||
Two Quarters Ended | Two Quarters Ended | |||||||||||||||||||||
April 1, | April 3, | % | April 1, | April 3, | ||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | ||||||||||||||||||
As a % of total net revenues | ||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||
Company-operated stores | $ | 5,253.0 | $ | 4,744.8 | 10.7 | % | 79.2 | % | 82.7 | % | ||||||||||||
Licensed stores | 596.9 | 491.9 | 21.3 | 9.0 | 8.6 | |||||||||||||||||
CPG, foodservice and other | 781.9 | 499.8 | 56.4 | 11.8 | 8.7 | |||||||||||||||||
Total net revenues | 6,631.8 | 5,736.5 | 15.6 | 100.0 | 100.0 | |||||||||||||||||
Cost of sales including occupancy costs | 2,908.0 | 2,363.5 | 23.0 | 43.8 | 41.2 | |||||||||||||||||
Store operating expenses | 1,952.2 | 1,755.2 | 11.2 | 29.4 | 30.6 | |||||||||||||||||
Other operating expenses | 212.0 | 189.0 | 12.2 | 3.2 | 3.3 | |||||||||||||||||
Depreciation and amortization expenses | 271.9 | 256.7 | 5.9 | 4.1 | 4.5 | |||||||||||||||||
General and administrative expenses | 398.4 | 366.8 | 8.6 | 6.0 | 6.4 | |||||||||||||||||
Total operating expenses | 5,742.5 | 4,931.2 | 16.5 | 86.6 | 86.0 | |||||||||||||||||
Income from equity investees | 97.1 | 72.7 | 33.6 | 1.5 | 1.3 | |||||||||||||||||
Operating income | 986.4 | 878.0 | 12.3 | 14.9 | 15.3 | |||||||||||||||||
Interest income and other, net | 58.5 | 34.2 | 71.1 | 0.9 | 0.6 | |||||||||||||||||
Interest expense | (17.4 | ) | (15.0 | ) | 16.0 | (0.3 | ) | (0.3 | ) | |||||||||||||
Earnings before income taxes | 1,027.5 | 897.2 | 14.5 | 15.5 | 15.6 | |||||||||||||||||
Income taxes | 335.2 | 287.3 | 16.7 | 5.1 | 5.0 | |||||||||||||||||
Net earnings including noncontrolling interest | 692.3 | 609.9 | 13.5 | 10.4 | 10.6 | |||||||||||||||||
Net earnings attributable to noncontrolling interest | 0.4 | 1.8 | (77.8 | ) | 0.0 | 0.0 | ||||||||||||||||
Net earnings attributable to Starbucks | $ | 691.9 | $ | 608.1 | 13.8 | % | 10.4 | % | 10.6 | % | ||||||||||||
Net earnings per common share - diluted | $ | 0.90 | $ | 0.79 | 13.9 | % | ||||||||||||||||
Weighted avg. shares outstanding - diluted | 770.9 | 769.3 | ||||||||||||||||||||
Cash dividends declared per share | $ | 0.34 | $ | 0.26 | ||||||||||||||||||
Supplemental Ratios: | ||||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 37.2 | % | 37.0 | % | ||||||||||||||||||
Effective tax rate including noncontrolling interest | 32.6 | % | 32.0 | % |
Segment Results
The tables below present reportable segment results net of intersegment eliminations (in millions):
Americas | April 1, | April 3, | % | April 1, | April 3, | |||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | ||||||||||||||||
Quarter Ended |
As a % of Americas
total net revenues |
|||||||||||||||||||
Net revenues: | ||||||||||||||||||||
Company-operated stores | $ | 2,170.2 | $ | 2,002.8 | 8.4 | % | 91.4 | % | 92.5 | % | ||||||||||
Licensed stores | 198.9 | 156.8 | 26.8 | 8.4 | 7.2 | |||||||||||||||
Foodservice and other | 5.6 | 5.2 | 7.7 | 0.2 | 0.2 | |||||||||||||||
Total net revenues | 2,374.7 | 2,164.8 | 9.7 | 100.0 | 100.0 | |||||||||||||||
Cost of sales including occupancy costs | 941.6 | 845.6 | 11.4 | 39.7 | 39.1 | |||||||||||||||
Store operating expenses | 837.4 | 770.1 | 8.7 | 35.3 | 35.6 | |||||||||||||||
Other operating expenses | 18.7 | 18.7 |
0.0 |
0.8 | 0.9 | |||||||||||||||
Depreciation and amortization expenses | 97.2 | 98.1 | (0.9 | ) | 4.1 | 4.5 | ||||||||||||||
General and administrative expenses | 18.9 | 14.1 | 34.0 | 0.8 | 0.7 | |||||||||||||||
Total operating expenses | 1,913.8 | 1,746.6 | 9.6 | 80.6 | 80.7 | |||||||||||||||
Income from equity investees | 2.1 | 1.7 | 23.5 | 0.1 | 0.1 | |||||||||||||||
Operating income | $ | 463.0 | $ | 419.9 | 10.3 | % | 19.5 | % | 19.4 | % | ||||||||||
Supplemental Ratios: | ||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 38.6 | % | 38.5 | % | ||||||||||||||||
Two Quarters Ended |
||||||||||||||||||||
Net revenues: | ||||||||||||||||||||
Company-operated stores | $ | 4,526.3 | $ | 4,150.8 | 9.0 | % | 91.4 | % | 92.4 | % | ||||||||||
Licensed stores | 415.3 | 330.5 | 25.7 | 8.4 | 7.4 | |||||||||||||||
Foodservice and other | 11.6 | 11.4 | 1.8 | 0.2 | 0.3 | |||||||||||||||
Total net revenues | 4,953.2 | 4,492.7 | 10.2 | 100.0 | 100.0 | |||||||||||||||
Cost of sales including occupancy costs | 1,948.3 | 1,721.5 | 13.2 | 39.3 | 38.3 | |||||||||||||||
Store operating expenses | 1,712.2 | 1,565.7 | 9.4 | 34.6 | 34.8 | |||||||||||||||
Other operating expenses | 39.2 | 36.6 | 7.1 | 0.8 | 0.8 | |||||||||||||||
Depreciation and amortization expenses | 194.3 | 196.3 | (1.0 | ) | 3.9 | 4.4 | ||||||||||||||
General and administrative expenses | 35.3 | 27.4 | 28.8 | 0.7 | 0.6 | |||||||||||||||
Total operating expenses | 3,929.3 | 3,547.5 | 10.8 | 79.3 | 79.0 | |||||||||||||||
Income from equity investees | 2.1 | 1.7 | 23.5 | 0.0 | 0.0 | |||||||||||||||
Operating income | $ | 1,026.0 | $ | 946.9 | 8.4 | % | 20.7 | % | 21.1 | % | ||||||||||
Supplemental Ratios: | ||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 37.8 | % | 37.7 | % |
EMEA | April 1, | April 3, | % | April 1, | April 3, | ||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | |||||||||||||||||
Quarter Ended |
As a % of EMEA
total net revenues |
||||||||||||||||||||
Net revenues: | |||||||||||||||||||||
Company-operated stores | $ | 233.5 | $ | 208.2 | 12.2 | % | 85.7 | % | 86.9 | % | |||||||||||
Licensed stores | 31.1 | 24.6 | 26.4 | 11.4 | 10.3 | ||||||||||||||||
Foodservice | 7.8 | 6.9 | 13.0 | 2.9 | 2.9 | ||||||||||||||||
Total net revenues | 272.4 | 239.7 | 13.6 | 100.0 | 100.0 | ||||||||||||||||
Cost of sales including occupancy costs | 143.9 | 121.6 | 18.3 | 52.8 | 50.7 | ||||||||||||||||
Store operating expenses | 91.9 | 77.4 | 18.7 | 33.7 | 32.3 | ||||||||||||||||
Other operating expenses | 8.9 | 7.8 | 14.1 | 3.3 | 3.3 | ||||||||||||||||
Depreciation and amortization expenses | 14.3 | 13.0 | 10.0 | 5.2 | 5.4 | ||||||||||||||||
General and administrative expenses | 18.9 | 14.1 | 34.0 | 6.9 | 5.9 | ||||||||||||||||
Total operating expenses | 277.9 | 233.9 | 18.8 | 102.0 | 97.6 | ||||||||||||||||
Income from equity investees |
0.0 |
1.9 | (100.0 | ) |
0.0 |
0.8 | |||||||||||||||
Operating income | $ | (5.5 | ) | $ | 7.7 | nm | % | (2.0 | ) | % | 3.2 | % | |||||||||
Supplemental Ratios: | |||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 39.4 | % | 37.2 | % | |||||||||||||||||
Two Quarters Ended |
|||||||||||||||||||||
Net revenues: | |||||||||||||||||||||
Company-operated stores | $ | 497.9 | $ | 433.4 | 14.9 | % | 86.5 | % | 86.9 | % | |||||||||||
Licensed stores | 62.4 | 51.1 | 22.1 | 10.8 | 10.2 | ||||||||||||||||
Foodservice | 15.3 | 14.3 | 7.0 | 2.7 | 2.9 | ||||||||||||||||
Total net revenues | 575.6 | 498.8 | 15.4 | 100.0 | 100.0 | ||||||||||||||||
Cost of sales including occupancy costs | 294.4 | 244.3 | 20.5 | 51.1 | 49.0 | ||||||||||||||||
Store operating expenses | 185.7 | 154.2 | 20.4 | 32.3 | 30.9 | ||||||||||||||||
Other operating expenses | 17.6 | 15.9 | 10.7 | 3.1 | 3.2 | ||||||||||||||||
Depreciation and amortization expenses | 28.5 | 25.2 | 13.1 | 5.0 | 5.1 | ||||||||||||||||
General and administrative expenses | 35.3 | 30.5 | 15.7 | 6.1 | 6.1 | ||||||||||||||||
Total operating expenses | 561.5 | 470.1 | 19.4 | 97.6 | 94.2 | ||||||||||||||||
Income from equity investees | 0.3 | 4.2 | (92.9 | ) | 0.1 | 0.8 | |||||||||||||||
Operating income | $ | 14.4 | $ | 32.9 | (56.2 | ) | % | 2.5 | % | 6.6 | % | ||||||||||
Supplemental Ratios: | |||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 37.3 | % | 35.6 | % |
China/Asia Pacific (CAP) | April 1, | April 3, | % | April 1, | April 3, | |||||||||||||
2012 | 2011 | Change | 2012 | 2011 | ||||||||||||||
Quarter Ended |
As a % of CAP
total net revenues |
|||||||||||||||||
Net revenues: | ||||||||||||||||||
Company-operated stores | $ | 117.5 | $ | 82.5 | 42.4 | % | 67.3 | % | 62.6 | % | ||||||||
Licensed stores | 57.1 | 49.3 | 15.8 | 32.7 | 37.4 | |||||||||||||
Total net revenues | 174.6 | 131.8 | 32.5 | 100.0 | 100.0 | |||||||||||||
Cost of sales including occupancy costs | 86.8 | 68.7 | 26.3 | 49.7 | 52.1 | |||||||||||||
Store operating expenses | 27.2 | 19.7 | 38.1 | 15.6 | 14.9 | |||||||||||||
Other operating expenses | 9.7 | 8.3 | 16.9 | 5.6 | 6.3 | |||||||||||||
Depreciation and amortization expenses | 5.6 | 4.5 | 24.4 | 3.2 | 3.4 | |||||||||||||
General and administrative expenses | 8.7 | 7.7 | 13.0 | 5.0 | 5.8 | |||||||||||||
Total operating expenses | 138.0 | 108.9 | 26.7 | 79.0 | 82.6 | |||||||||||||
Income from equity investees | 32.9 | 20.8 | 58.2 | 18.8 | 15.8 | |||||||||||||
Operating income | $ | 69.5 | $ | 43.7 | 59.0 | % | 39.8 | % | 33.2 | % | ||||||||
Supplemental Ratios: | ||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 23.1 | % | 23.9 | % | ||||||||||||||
Two Quarters Ended |
||||||||||||||||||
Net revenues: | ||||||||||||||||||
Company-operated stores | $ | 228.8 | $ | 160.6 | 42.5 | % | 67.0 | % | 63.6 | % | ||||||||
Licensed stores | 112.7 | 91.9 | 22.6 | 33.0 | 36.4 | |||||||||||||
Total net revenues | 341.5 | 252.5 | 35.2 | 100.0 | 100.0 | |||||||||||||
Cost of sales including occupancy costs | 171.2 | 128.6 | 33.1 | 50.1 | 50.9 | |||||||||||||
Store operating expenses | 54.3 | 35.3 | 53.8 | 15.9 | 14.0 | |||||||||||||
Other operating expenses | 21.1 | 15.9 | 32.7 | 6.2 | 6.3 | |||||||||||||
Depreciation and amortization expenses | 10.6 | 8.6 | 23.3 | 3.1 | 3.4 | |||||||||||||
General and administrative expenses | 17.4 | 13.2 | 31.8 | 5.1 | 5.2 | |||||||||||||
Total operating expenses | 274.6 | 201.6 | 36.2 | 80.4 | 79.8 | |||||||||||||
Income from equity investees | 60.5 | 38.8 | 55.9 | 17.7 | 15.4 | |||||||||||||
Operating income | $ | 127.4 | $ | 89.7 | 42.0 | % | 37.3 | % | 35.5 | % | ||||||||
Supplemental Ratios: | ||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 23.7 | % | 22.0 | % |
Channel Development | April 1, | April 3, | % | April 1, | April 3, | ||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | |||||||||||||||
Quarter Ended |
As a % of Channel Development
total net revenues |
||||||||||||||||||
Net revenues: | |||||||||||||||||||
CPG | $ | 237.4 | $ | 132.8 | 78.8 | % | 73.8 | % | 64.9 | % | |||||||||
Foodservice | 84.1 | 71.9 | 17.0 | 26.2 | 35.1 | ||||||||||||||
Total net revenues | 321.5 | 204.7 | 57.1 | 100.0 | 100.0 | ||||||||||||||
Cost of sales | 204.7 | 113.6 | 80.2 | 63.7 | 55.5 | ||||||||||||||
Other operating expenses | 49.3 | 36.6 | 34.7 | 15.3 | 17.9 | ||||||||||||||
Depreciation and amortization expenses | 0.3 | 0.6 | (50.0 | ) | 0.1 | 0.3 | |||||||||||||
General and administrative expenses | 2.7 | 1.3 | 107.7 | 0.8 | 0.6 | ||||||||||||||
Total operating expenses | 257.0 | 152.1 | 69.0 | 79.9 | 74.3 | ||||||||||||||
Income from equity investees | 17.2 | 14.6 | 17.8 | 5.3 | 7.1 | ||||||||||||||
Operating income | $ | 81.7 | $ | 67.2 | 21.6 | % | 25.4 | % | 32.8 | % | |||||||||
Two Quarters Ended |
|||||||||||||||||||
Net revenues: | |||||||||||||||||||
CPG | $ | 484.5 | $ | 248.4 | 95.0 | % | 73.7 | % | 62.1 | % | |||||||||
Foodservice | 172.8 | 151.5 | 14.1 | 26.3 | 37.9 | ||||||||||||||
Total net revenues | 657.3 | 399.9 | 64.4 | 100.0 | 100.0 | ||||||||||||||
Cost of sales | 425.3 | 219.9 | 93.4 | 64.7 | 55.0 | ||||||||||||||
Other operating expenses | 99.5 | 66.6 | 49.4 | 15.1 | 16.7 | ||||||||||||||
Depreciation and amortization expenses | 0.7 | 1.4 | (50.0 | ) | 0.1 | 0.4 | |||||||||||||
General and administrative expenses | 4.7 | 2.7 | 74.1 | 0.7 | 0.7 | ||||||||||||||
Total operating expenses | 530.2 | 290.6 | 82.5 | 80.7 | 72.7 | ||||||||||||||
Income from equity investees | 34.2 | 28.9 | 18.3 | 5.2 | 7.2 | ||||||||||||||
Operating income | $ | 161.3 | $ | 138.2 | 16.7 | % | 24.5 | % | 34.6 | % |
Other | April 1, | April 3, | % | ||||||||||||
2012 | 2011 | Change | |||||||||||||
Quarter Ended |
|||||||||||||||
Net revenues: | |||||||||||||||
Licensed stores | $ | 3.2 | $ | 7.1 | (54.9 | ) | % | ||||||||
CPG, foodservice and other | 49.5 | 37.6 | 31.6 | ||||||||||||
Total net revenues | 52.7 | 44.7 | 17.9 | ||||||||||||
Cost of sales | 34.9 | 21.7 | 60.8 | ||||||||||||
Other operating expenses | 18.7 | 27.5 | (32.0 | ) | |||||||||||
Depreciation and amortization expenses | 19.7 | 12.8 | 53.9 | ||||||||||||
General and administrative expenses | 157.7 | 144.4 | 9.2 | ||||||||||||
Total operating expenses | 231.0 | 206.4 | 11.9 | ||||||||||||
Income from equity investees |
0.0 |
(0.7 | ) | (100.0 | ) | ||||||||||
Operating loss | $ | (178.3 | ) | $ | (162.4 | ) | 9.8 | % | |||||||
Two Quarters Ended |
|||||||||||||||
Net revenues: | |||||||||||||||
Licensed stores | $ | 6.5 | $ | 18.4 | (64.7 | ) | % | ||||||||
CPG, foodservice and other | 97.7 | 74.2 | 31.7 | ||||||||||||
Total net revenues | 104.2 | 92.6 | 12.5 | ||||||||||||
Cost of sales | 68.8 | 49.2 | 39.8 | ||||||||||||
Other operating expenses | 34.6 | 54.0 | (35.9 | ) | |||||||||||
Depreciation and amortization expenses | 37.8 | 25.2 | 50.0 | ||||||||||||
General and administrative expenses | 305.7 | 293.0 | 4.3 | ||||||||||||
Total operating expenses | 446.9 | 421.4 | 6.1 | ||||||||||||
Income from equity investees |
0.0 |
(0.9 | ) | (100.0 | ) | ||||||||||
Operating loss | $ | (342.7 | ) | $ | (329.7 | ) | 3.9 | % |
Supplemental Information
The following supplemental information is provided for historical and comparative purposes. The U.S. data is included as a transitional tool to provide insight into the U.S. business, as it was previously a reportable segment and is now the largest component of the Americas segment:
Fiscal Second Quarter 2012 U.S. Supplemental Data
Quarter Ended | ||||||
($ in millions) | Apr 1, 2012 | Apr 3, 2011 | Change | |||
Comparable Store Sales Growth | 8% | 7% | ||||
Change in Transactions | 7% | 6% | ||||
Change in Ticket | 1% | 1% | ||||
Revenues | $2,115.1 | $1,926.5 | 10% | |||
Operating Income | $436.4 | $395.5 | 10% | |||
Operating Margin | 20.6% | 20.5% | 10 bps |
Fiscal Second Quarter 2012 Store Data
The company’s store data for the periods presented are as follows:
Net stores opened/(closed) during the period | |||||||||||||
Quarter Ended |
Two Quarters Ended |
Stores open as of | |||||||||||
April 1, | April 3, | April 1, | April 3, | April 1, | April 3, | ||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||
Americas: | |||||||||||||
Company-operated stores | 25 | (2) | 36 | 4 | 7,659 | 7,584 | |||||||
Licensed stores | 51 | (209) | 135 | (157) | 4,911 | 4,887 | |||||||
76 | (211) | 171 | (153) | 12,570 | 12,471 | ||||||||
EMEA: | |||||||||||||
Company-operated stores (1) | (3) | (3) | 5 | 6 | 901 | 876 | |||||||
Licensed stores (1) | 20 | 12 | 37 | 34 | 899 | 818 | |||||||
17 | 9 | 42 | 40 | 1,800 | 1,694 | ||||||||
CAP: | |||||||||||||
Company-operated stores | 28 | 15 | 63 | 38 | 575 | 477 | |||||||
Licensed stores | 55 | 41 | 141 | 80 | 2,475 | 2,221 | |||||||
83 | 56 | 204 | 118 | 3,050 | 2,698 | ||||||||
Total | 176 | (146) | 417 | 5 | 17,420 | 16,863 | |||||||
(1) |
EMEA store data has been adjusted for the acquisition of store locations in Austria and Switzerland in Q4 fiscal 2011, by reclassifying historical information from Licensed stores to company-operated stores. |
Non-GAAP Disclosure
In addition to the GAAP results provided in this release, the company provides non-GAAP operating margin and non-GAAP earnings per share (non-GAAP EPS) for fiscal 2011. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP operating margin and non-GAAP earnings per share (non-GAAP EPS) are operating margin and diluted net earnings per share, respectively.
The fiscal 2011 non-GAAP financial measures provided in this release exclude non-routine gains from the sale of properties and the acquisition of the company’s joint venture operations in Switzerland and Austria in fiscal 2011. The company’s management believes that providing these non-GAAP financial measures better enables investors to understand and evaluate the company’s historical and prospective operating performance. More specifically, for historical non-GAAP financial measures, management excludes the non-routine gains in fiscal 2011, because it believes that the impact of non-routine gains do not reflect expected future expenses and do not contribute to a meaningful evaluation of the company’s future operating performance or comparisons to the company’s past operating performance.
These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP. Other companies may calculate these non-GAAP financial measures differently than the company does, limiting the usefulness of those measures for comparative purposes.
STARBUCKS CORPORATION | |||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES | |||||||
(unaudited) | |||||||
(in millions, except per share data) | |||||||
Year Ended | |||||||
October 2, | |||||||
2011 | |||||||
Consolidated | |||||||
Operating margin, as reported (GAAP) | 14.8 | % | |||||
Gain on sale of properties | (0.3 | ) | |||||
Non-GAAP operating margin | 14.5 | % | |||||
Diluted EPS, as reported (GAAP) | $ | 1.62 | |||||
Gain on sale of properties | (0.02 | ) | |||||
Gain from Switzerland and Austria transaction | (0.07 | ) | |||||
Non-GAAP Diluted EPS | $ | 1.52 |
© 2012 Starbucks Coffee Company. All rights reserved.
CONTACT:
Starbucks
Investor Relations:
JoAnn
DeGrande, 206-318-7118
investorrelations@starbucks.com
or
Media:
Maggie
Jantzen, 206-318-7100
press@starbucks.com