Starbucks Revenues Increase 11%; Earnings Per Share Surge 22% to a Q3 Record $0.67

Strong comp store sales increases of 6% globally and 7% in the U.S. drive record Q3 revenues of $4.2 billion

Channel Development revenues increase 13%

Consolidated operating margin expands to a Q3 record 18.5%

Company reiterates strong growth outlook; introduces initial FY15 growth targets

View detailed financial data here

SEATTLE; July 24, 2014 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal third quarter and 39-week fiscal year to date ended June 29, 2014.

Q3 Fiscal 2014 Highlights:

• Consolidated net revenue growth accelerated to 11%; net revenues totaled a Q3 record $4.2 billion

• Global comparable store sales increased 6%, marking the 18th consecutive quarter of global comp growth of 5% or greater

Americas comp sales increased 6%; U.S. comp sales increased 7%

EMEA comp sales increased 3%

China/Asia Pacific comp sales increased 7%

• Consolidated operating income increased 25%, to a Q3 record $769 million

• Consolidated operating margin expanded 200 bps, to a Q3 record 18.5%, primarily driven by sales leverage

• Channel Development revenues increased 13%; operating margin expanded 800 bps to 37.1%

• Earnings per share increased 22% to a Q3 record $0.67 per share

• The company opened 344 net new stores globally, ending the quarter with 20,863 stores across 64 countries

Updated Fiscal 2014 Targets:

Following the strong performance year-to-date, the company is updating the following fiscal 2014 targets:

• Consolidated operating margin improvement now targeted at 200 bps over FY13, when excluding the Kraft litigation charge in fiscal 2013

Channel Development now targeting approximately 600 bps improvement over FY13

• Earnings per share now expected to be in the range of $2.70 to $2.72; or $2.65 to $2.67 when excluding an estimated net benefit of $0.05 for certain FY14 non-GAAP adjustments. Please refer to the GAAP to non-GAAP reconciliation at the end of this release:

Q4 EPS now in the range of $0.76 to $0.78; or $0.73 to $0.75 when excluding a $0.03 estimated net benefit as described in the above referenced reconciliation

• Net new stores now expected to be approximately 1,550

Americas: increased from 600 to 650

Fiscal 2015 Targets:

The company introduces initial fiscal 2015 targets as follows:

• Revenue growth of 10% or greater

• Global comparable store sales growth in the mid single digits

• An additional 1,600 net new stores globally

• Earnings per share growth of 15%-20% over FY14 calculated based on non-GAAP earnings per share

“Starbucks Q3 represents another quarter of outstanding operating performance in which each of our segments contributed to record results,” said Howard Schultz, chairman, president and ceo of Starbucks Coffee Company. “The increasing power of the Starbucks brand, the success of our best-in-class mobile, social and digital technologies and our greatest asset - over 300,000 partners who deliver the Starbucks Experience to over 70 million customers around the world each week - position us to continue growing our business around the world and into the future.”

“Starbucks record Q3 results demonstrate both the power of our innovation and the opportunities for growth, globally and in the U.S., that lie ahead. Importantly, record revenues and operating margin reflect an acceleration of top-line growth and meaningful contributions from all operating regions and our Channel Development segment,” said Scott Maw, Starbucks cfo. “Our Q3 results give us confidence in our ability to deliver on our full year fiscal 2014 targets and support the strong 2015 revenue and profit growth targets we introduced today, despite continued challenging economic and consumer headwinds in many of the global markets in which we operate."