Starbucks Reports Record Q2 Financial and Operating Results

EPS Up 18% to a Q2 Record $0.39 Per Share; Comp Store Sales Up 7% in the U.S. and Americas; 6% Globally

Revenues Up 9% to a Q2 Record $5.0 Billion; 5% Transaction Growth and 18% Revenue Growth in China; Operating Margin Expands to a Q2 Record 17.3%

Company Adds 900,000 Starbucks Rewards Loyalty Members in the U.S. since Q1; Now Has 12M Active U.S. Members

Company Reaffirms FY16 Growth Targets; Announces Additional 100M Share Repurchase Authorization

SEATTLE; April 21, 2016 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal second quarter and 26-week fiscal year to date ended March 27, 2016. Fiscal 2016 and fiscal 2015 GAAP results include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.

Q2 Fiscal 2016 Highlights:

• Global comparable store sales increased 6%, comprised of a 4% increase in ticket and 2% increase in traffic

• Consolidated net revenues grew 9% to a Q2 record $5.0 billion

• Consolidated GAAP operating income increased 11% to a Q2 record $864 million

Non-GAAP operating income increased 11% over Q2 FY15 non-GAAP, to a Q2 record $878 million

• Consolidated GAAP operating margin increased 30 basis points to a Q2 record 17.3%

Non-GAAP operating margin expanded 30 basis points over Q2 FY15 non-GAAP, to a Q2 record 17.6%

• EPS increased 18% to a Q2 record $0.39 per share

• The company opened 350 net new stores globally, bringing total stores to 23,921 worldwide at the end of Q2

• Starbucks served nearly 16 million more customer occasions from its global comp store base - and over 12 million more customer occasions in the U.S. - in Q2 FY16 compared to Q2 FY15

• Membership in the company's Starbucks Rewards loyalty program increased 16% year-over-year and 8% in Q2 versus Q1 FY16; company now has 12 million active loyalty members in the U.S.

• Mobile Order and Pay usage doubled year-over-year; company now processing 8 million Mobile Order and Pay transactions per month

PDF: Detailed financial data

"Starbucks record Q2 financial and operating performance - including a stunning 18% increase in revenues and a 5% increase in transactions in China - underscores the strength of the Starbucks brand and the resiliency of our global retail and CPG businesses," said Howard Schultz, chairman and ceo. "Loyalty, technology and innovation are continuing to fuel our digital flywheel and propel our business forward all around the world."

“Starbucks Q2 represented another quarter of solid growth, with the highest revenues of any non-holiday quarter in our history and excellent financial, operating and profit performance,” said Scott Maw, cfo. "The record-setting performance we delivered in the first half of fiscal 2016 ideally positions us to benefit from the investments we are making in our partners, in our stores and in groundbreaking innovation, and to continue delivering world class returns to our shareholders into the future.”