Starbucks Reports Record Fourth Quarter and Fiscal Year 2014 Results


Record Q4 EPS of $0.77; Non-GAAP EPS jumps 23% to a record $0.74 excluding non-routine items

 Comp sales increase 5% globally

Consolidated net revenues increase 10% to a Q4 record $4.2 billion

Company grows dividend 23% and increases outlook for a strong FY2015

View detailed financial data here

SEATTLE; October 30, 2014 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended September 28, 2014. Fiscal 2014 results include the impact of a litigation credit in Q1 and a net benefit from transactions in Q4.

Fiscal 2013 results include the impact of the litigation charge associated with the Kraft arbitration in Q4, as well as gains on the sales of Starbucks equity in its Mexico joint venture in Q2 and its Chile and Argentina joint ventures in Q4. Non-GAAP results exclude these items. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release.

Q4 Fiscal 2014 Highlights:

• Consolidated net revenues increased 10% to a Q4 record $4.2 billion

• Global comparable store sales increased 5%, the 19th consecutive quarter of comp growth of 5% or greater

• Consolidated operating income reached $854.9 million

Non-GAAP operating income of $857.3 million grew 28% over Q4 FY13 non-GAAP operating income

• Consolidated operating margin expanded to 20.4%

Non-GAAP operating margin of 20.5% grew 280 basis points over Q4 FY13 non-GAAP operating margin

• Earnings per share reached $0.77

Non-GAAP EPS of $0.74 grew 23% over Q4 FY13 non-GAAP EPS

• The company opened 503 net new stores in the quarter, ending FY14 with 21,366 stores in 65 countries

• The Board of Directors declared a cash dividend of $0.32 per share, an increase of 23%

Fiscal Year 2014 Highlights:

• Consolidated net revenues increased 11% to a record $16.4 billion

• Global comparable store sales increased 6%

 Americas comp sales increased 6%

 EMEA comp sales increased 5%

 China/Asia Pacific comp sales increased 7%

• Consolidated operating income reached $3.1 billion

 Non-GAAP operating income of $3.1 billion grew 25% over FY13 non-GAAP operating income

• Consolidated operating margin expanded to 18.7%

 Non-GAAP operating margin of 18.6% grew 210 basis points over FY13 non-GAAP operating margin

• Earnings per share reached $2.71

 Non-GAAP EPS of $2.66 grew 21% over FY13 non-GAAP EPS

• Starbucks opened 1,599 net new stores globally in FY14, including 742 in CAP, 698 in the Americas and 171 in EMEA

• The company returned $1.6 billion to shareholders through dividends and share repurchases

“Starbucks performance in fiscal 2014 was extraordinary by any metric or comparison,” said Howard Schultz, chairman, president and ceo of Starbucks Coffee Company. “But we cannot be content with the status quo, as consumers continue to demand more and more in terms of convenience and excellence.  You will see us continue to invest where it counts most, in mobile commerce, innovation, in the customer experience and the partners who drive it and in the quality of our coffees.”

“Starbucks Q4 results capped off a year of exceptional performance across our business and around the world,” said Scott Maw, Starbucks cfo. “In Q4, each of our segments delivered strong and balanced revenue and profit growth, consistent with the prior three quarters of fiscal 2014. The increasing global strength of the Starbucks brand, a robust pipeline of innovation, strong global comparable store sales growth and impressive margin expansion in conjunction with a company-wide emphasis on operational excellence and expense management give me great confidence in achieving our 2015 growth targets.”