Starbucks Reports Record Q2 FY17 Revenues and EPS

Q2 Comp Store Sales Up 3% Globally, Up 3% in U.S. and Up 7% in China

U.S. Comp Store Sales Accelerate Sequentially Through Q2; Reach 4% in March, Accelerate Further in April

Consolidated Net Revenues Grow 6% to Q2 Record $5.3 Billion; Operating Margin Expands to Q2 Record 17.7%

GAAP and Non-GAAP Earnings Per Share Up 15% to Q2 Record $0.45

SEATTLE; April 27, 2017 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal second quarter and 26-week fiscal year to date ended April 2, 2017. Fiscal 2017 and fiscal 2016 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 2017 Highlights:

  • Global comparable store sales increased 3%
    • Americas comp store sales increased 3%
      • U.S. comp store sales increased 3% comprised of a 4% increase in average ticket and a 2% decrease in transactions. Adjusting for the estimated impact of order consolidation related to the new Starbucks RewardsTM loyalty program, average ticket grew 3% with transactions flat to prior year.
    • CAP comp store sales increased 3%
      • China comp store sales increased 7% driven by a 6% increase in transactions
  • Consolidated net revenues grew 6% to a Q2 record $5.3 billion
  • Consolidated operating income increased 8% to a Q2 record $935 million
  • Consolidated operating margin expanded 40 basis points to a Q2 record 17.7%
  • GAAP and non-GAAP earnings per share grew 15% to a Q2 record $0.45 per share
  • Active U.S. membership in Starbucks Rewards grew 11% year-over-year to 13.3 million members
  • Starbucks Rewards represented 36% of U.S. company-operated sales in the quarter, with Mobile Payment reaching 29% of transactions and Mobile Order and Pay growing to 8% of transactions
  • Total stores reached 26,161 in 75 countries globally, with the opening of 427 net new stores in the quarter

PDF: Detailed Financial Data

“With our U.S. business accelerating throughout the quarter and strong performance in China, we are poised to deliver strong revenue growth in the second half and into the future,” said Kevin Johnson, Starbucks president and ceo. “Our success in opening over 2,000 stores around the world annually, delivering record AUV and profit, despite a very difficult period for many brick-and-mortar retailers, is a testament to the 330,000 partners who proudly wear the green apron.”

“Starbucks U.S. comp sales accelerated sequentially through the quarter - culminating with a 4% U.S. comp in March -and we’re seeing further acceleration into April," said Scott Maw, Starbucks cfo. “Investments we are making to increase throughput and further premiumize the Starbucks brand are paying off. And increased capacity combined with accelerating momentum and the beverage, food and technology innovation we will be introducing in the months ahead gives us great confidence in our ability to deliver strong comp sales and revenue growth in the back half of fiscal 2017

“Starbucks Roasteries under design or construction in the iconic, global cities of Shanghai, New York, Tokyo, Milan and Chicago will join our Seattle Roastery in delivering an immersive, ultra-premium, coffee-forward experience like none other anywhere in the world - further elevating the Starbucks brand, enhancing our customer experience and extending our global leadership around all-things-coffee,” said Howard Schultz, Starbucks executive chairman. “Together our Roasteries, Reserve stores and Reserve bars will broaden - and deepen - the enduring emotional connection that exists between our customers and the Starbucks brand everywhere.”