Starbucks Reports Record Q2 Results and Reaffirms FY14 Growth Targets


Starbucks Reports Record Q2 Results and Reaffirms FY14 Growth Targets

6% global comp growth drives record Q2 revenues of $3.9 billion

Strong comp growth in the U.S. and continued comp acceleration in China and EMEA

Robust 10% revenue growth in Channel Development

Operating income increases 18%; Operating margin expands in all segments

EPS increases to a Q2 record $0.56, up 17% excluding non-routine gain in prior year

View detailed financial data here

SEATTLE, April 24, 2014 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal second quarter and 26-week fiscal year to date ended March 30, 2014.

Q2 Fiscal 2014 Highlights:

• Global comparable store sales increased 6%

   ◦ Americas and U.S. comp growth of 6%

   ◦ EMEA comp growth of 6%, representing the highest growth in EMEA in 14 quarters

   ◦ China/Asia Pacific comp growth of 7%, driven by strong traffic

• Consolidated net revenues increased 9% to a Q2 record $3.9 billion

• Channel Development revenues grew 10%

• Consolidated operating income increased 18%, or $100 million, to a Q2 record $644 million

• All reportable segments contributed to an operating margin increase of 130 basis points to a Q2 record 16.6%

• Earnings per share grew to $0.56, up 17% excluding a $0.03 non-routine gain in the prior year Q2 related to the sale of the company’s equity in its Mexico joint venture

• The company opened 335 net new stores globally, including the 20,000th Starbucks store. Total company store count across all brands grew to 20,519.

“Starbucks record operating performance in Q2 demonstrates that our focus on building a different kind of company – performance driven, through the lens of humanity – continues to drive profits and shareholder value,” said Howard Schultz, chairman, president and ceo of Starbucks Coffee Company. “The innovation we are bringing to market through reinvention of our Teavana business and partnership with Oprah Winfrey, our reimagination of the Starbucks Experience through next-generation payment and loyalty programs and our continued investments in the over 200,000 Starbucks partners who wear the green apron every day continues to build equity in the Starbucks brand and strengthen our connection to customers in every market in which we operate.”

“Starbucks strong second quarter performance demonstrates the success of our ongoing efforts to drive industry-leading growth,” said Scott Maw, Starbucks cfo. “While global comparable store sales growth of 6% was impressive, and squarely in line with our targets, even more significant is the fact that we delivered strong, and balanced, revenue and profit growth across all of our reportable segments. The strong momentum we have created in the first half of the year, combined with our robust pipeline of innovation, give us confidence in our ability to meet our fiscal 2014 growth targets.”