Company to add 12,000 stores globally – to a total of 37,000 – by 2021

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Projects 10 percent revenue growth, 15-20 percent EPS growth and mid-single digit comp growth annually

Roasteries and Starbucks Reserve stores to elevate the Starbucks brand and customer experience

New innovation to further accelerate momentum of the company’s digital flywheel and mobile ecosystem

(Additional photos in the green downloads button above. <a href="https://news.starbucks.com/multimedia">Download video for media use here</a>)

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NEW YORK (December 7, 2016) – Capping another record quarter, and year of growth and profitability, Starbucks (NASDAQ: SBUX) today will host its biennial Investor Conference to present the company’s five-year strategic plan to grow revenue by 10 percent, EPS by 15-20 percent, and drive mid-single digit comp growth each year, as it plans to open approximately 12,000 new stores globally by 2021 while continuing to elevate the Starbucks Experience around the world.*

“Industry-leading innovation is driving our core business and creating further separation from competitors all around the world,” said Howard Schultz, chairman and chief executive officer. “Our Roasteries and Starbucks Reserve stores will further transform – and elevate – the Starbucks Experience we deliver to our customers, and are laying the foundation for our next wave of profitable, global growth. I have never been more energized or optimistic about the opportunities ahead as Kevin transitions to the ceo role and leads the most talented and experienced leadership team in Starbucks history.”

“Starbucks continues to deliver record financial performance. The customer experience created in our stores by partners who proudly wear the green apron is what makes Starbucks a destination for 80 to 90 million customers a week,” said Kevin Johnson, president and chief operating officer. “We are today executing against an ambitious, carefully-curated, multi-year strategy to further elevate the entire Starbucks brand and customer experience around the world, and further extending Starbucks leadership around all things coffee, retail and mobile. The power of our brand, the strength and momentum in our business, and the world-class management talent we have assembled give me great confidence in our ability to capture the enormous global growth opportunities ahead.”

Last week,<a href="https://news.starbucks.com/news/starbucks-announces-new-leadership-structure"> it was announced</a> that Johnson will assume the role of president and ceo at Starbucks, and Schultz will become executive chairman, effective April 3, 2017.

Transforming the Premium Coffee Experience 

Since opening two years ago, the <a href="https://news.starbucks.com/news/video-inside-starbucks-reserve-roastery-and-tasting-room">Starbucks Reserve® Roastery</a> in Seattle has become recognized as the most dynamic and immersive coffee forward retail experience in the world, delivering an unprecedented level of premiumization to the coffee category and fueling the next wave of transformation that is elevating the Starbucks Experience globally. Building on this, the company plans to accelerate the presentation of the Roastery experience around the world, opening its next Roastery in Shanghai in 2017, Tokyo and New York City in 2018, and a fifth location in Europe to be announced early next year.

Each Roastery will serve as the foundation for Starbucks Reserve® stores – a new retail format that will integrate the theatre and romance of the Roastery with the unique culinary experience of the company’s new Italian food partner, Princi. These Starbucks Reserve® stores, under the leadership of the company’s new Siren Retail organization, represent a significant growth opportunity for the company in the U.S. and around the world. The first of these new stores will open in Seattle and Chicago in the second half of FY17, with plans to open 1,000 or more globally over time. In addition, the company plans to open standalone Princi stores in Seattle, New York and Chicago in late 2017 and in early 2018. The company is also extending elements of the high-end Roastery experience to its core Starbucks® stores, adding Starbucks Reserve® experience bars in up to 20 percent of its total portfolio (including new and renovated locations) by 2021. 

Premiumization Strategy to Drive Innovative New Customer Experiences 

Starbucks Reserve® Roasteries will serve as an innovation pipeline that will elevate the brand and contribute a "halo" to the entire Starbucks Experience. This includes new product breakthroughs that will contribute to the growth of the company’s ecosystem, segmented strategically across all Starbucks® stores. Earlier this year, Starbucks introduced its first limited-time beverage offering inspired by the Roastery, the Smoked Butterscotch Latte. This was followed by Nitro Cold Brew, which is now available in more than 500 U.S. company-owned locations and select stores in Canada and China, as Starbucks pursues a $600 million global Cold Brew opportunity. Both products continue to reinforce the company’s focus on Roastery-inspired craft at scale, as well as ongoing investment in the cold coffee category. In core stores, Starbucks innovative, coffee-forward beverages such as Flat White, Cold Brew, Latte Macchiato and Iced Coconut Milk Mocha Macchiato all support the company's premiumization strategy. In January, customers nationwide will be introduced to another Roastery offering with the introduction of the Cascara Latte. Made with the fruit of the coffee cherry, Cascara lends subtle notes of dark brown sugar and maple to classic Starbucks® espresso. With its strong retail foundation and operational excellence, Starbucks is bringing Roastery-inspired innovations like this to market more rapidly than ever before, creating further distinction from competitors. 

Starbucks is simultaneously innovating and expanding its food menu with products customers have been looking for, starting with the launch of Sous Vide Egg Bites in January 2017 – a wheat-free, low calorie, high protein, convenient breakfast; the spring launch of a Certified Gluten-Free Breakfast Sandwich; the expansion of the successful Bistro Box platform; as well as a regional rollout of delicious organic soups. Relevant innovation has become fundamental to unlocking the lunch daypart and building on existing breakfast daypart momentum, giving the company the ability to realize additional profitability and incremental sales. Starbucks® Breakfast Sandwich sales have more than doubled over the past four years and innovation will continue to drive meaningful growth, creating and meeting customer demand for innovation across all dayparts. Building on this strong momentum, Starbucks once again aims to double food growth over the next five years.

Starbucks offers the largest and most robust mobile ecosystem of any retailer in the world, with more than 12 million Starbucks Rewards™ members (up 18 percent year on year), eight million mobile paying customers with one out of three now using Mobile Order &amp; Pay, and more than $6 billion loaded onto prepaid Starbucks Cards in North America during the past year alone. Today, Starbucks will unveil an innovative conversational ordering system, My Starbucks® Barista, powered by groundbreaking Artificial Intelligence (AI) for the Starbucks® Mobile App. Starbucks® Mobile App customers will be able to place their orders via voice command or messaging interface, delivering unparalleled speed and convenience, enhancing customer loyalty and engagement and further extending the accessibility of the Starbucks® app. The My Starbucks® Barista feature will roll out first on iOS in limited beta in early 2017 and be made available to more iOS and Android users in subsequent releases. 

Starbucks digital flywheel has also continued to gain momentum with the launch of true one-to-one personalization. While still early in the evolution of this service, Starbucks hyper-personalized e-mail reward offerings – with more than 400,000 variations – have more than doubled customer response rates over previous segmented email campaigns, translating into increased customer engagement and, importantly, accelerated spend. Starbucks has delivered personalized offers to customers directly on the front screen of the mobile app. By early 2017, the company expects to complete the rollout of suggested selling and recommendations (suggesting items for pairing or additions to a customer’s order) during Mobile Order and Pay checkout, which the company believes will further fuel engagement and growth. With Starbucks Rewards™, the company’s new spend-based loyalty program, customers are finding increased value when being rewarded for bigger purchases. This enables the company to boost ticket, create greater marketing flexibility and pursue “Stars Everywhere” partnerships to create further Star earning opportunities, while reducing “order splitting.” With a 94 percent program retention rate, and new international markets on the horizon, the program is stronger than ever before. 

Unlocking High-Value Opportunities in China 

Customers in China have continued to embrace the Starbucks brand, with some of the company’s most innovative, efficient and profitable stores producing record revenue and strong same-store sales growth in FY16. Starbucks newest class of stores in China are delivering the highest AUVs, ROI and profitability of any store class in the company’s 17-year history in the market. Starbucks now operates approximately 2,500 stores in 118 cities in China and employs more than 30,000 partners (employees), opening over a store a day – a growth rate that will continue to accelerate well into the future. Starbucks remains on track to open more than 5,000 stores in China by 2021 and expects the market will eclipse that in the U.S. over time. While Starbucks business in China is in its very early stages of development, the company will announce today a series of strategic moves it is making in the digital and mobile space to further extend customer engagement and loyalty. 

Expanding Global Leadership Position in At-Home Coffee and Ready-to-Drink

Over the next five years, Starbucks expects its Channel Development segment, which includes its Consumer Packaged Goods (CPG) portfolio, Branded Solutions (licensed stores and foodservice), and Ready-to-Drink (RTD) segments, will generate an incremental $1 billion in revenue, grow operating income by 75 percent, and double its RTD business outside of the U.S. The company is the industry leader in premium single serve, premium packaged roast and ground coffee, and Ready-to-Drink products, and is well positioned to grow its share of these markets both in the U.S. and globally. The company's more than 20-year partnership with PepsiCo to create the North America Coffee Partnership (NACP) is a more than $2 billion business and has approximately 97 percent share of the RTD coffee category. The NACP continues to bring to the market highly relevant, new and innovative coffee and energy products to meet the needs of customers looking for premium, on-the-go coffee offerings. In spring 2017, the company will launch new bottled Starbucks® Cold Brew Cocoa and Honey with Cream in select markets across the U.S. In Latin America, Starbucks has expanded its partnership with PepsiCo to begin distribution of the iconic bottled Frappuccino® chilled coffee beverage across ten markets. In China, where the RTD coffee and energy category represents a $6 billion opportunity that is projected to grow by 20 percent over the next three years, Starbucks and its partner, Tingyi Holding Corp., have rapidly achieved distribution in over 37 major Chinese cities and over 7,100 points of distribution, experiencing strong consumer demand.

Starbucks is extending this same disciplined growth and innovation to the RTD tea category, which is a fast growing $4 billion category, starting with the upcoming launch of bottled Teavana® Craft Iced Teas in partnership with Anheuser-Busch. The first line of teas will begin shipping to select Northeast U.S. retailers in February and customers will soon enjoy four new, vibrant varieties brewed from the finest Teavana® teas and botanicals with no artificial flavors. The new RTD teas include Pineapple Berry Blue Herbal Tea, Peach Green Tea, Mango Black Tea and Passion Tango® Herbal Tea. Later in 2017, select flavors will roll out to Starbucks® stores with plans for national channel availability by 2018.

Creating Long-Term Opportunities for Partners 

From being among the first to offer comprehensive health benefits and equity in the form of stock for partners who work 20 hours or more a week, to providing them with the opportunity for full tuition reimbursement for a bachelor’s degree from Arizona State University through the innovative Starbucks College Achievement Plan, Starbucks has continued to invest in and innovate around the partner experience while balancing the needs of its customers, shareholders and the marketplace. Starbucks has now matched $78 million in 401K savings in the U.S. with a total fund balance of $1.3 billion as of FY16. Its Global Bean Stock program, which grants partners equity in the form of company stock, generated $221.6 million in pre-taxed gains in FY16. The company also recently announced it will add an enhancement to the program in 2017, doubling the annual Bean Stock award for U.S. hourly store partners with at least two years of continuous service with the company. Further, with the recent move to a new healthcare platform, U.S. partners are now saving an average of 15 percent per pay check on healthcare premiums compared to last year.

Starbucks is finding that these incremental investments in both wages and benefits have helped support and elevate its partners, attract and retain the best talent, provide measured improvement in service to customers and deliver outsized returns to shareholders. In fact, since announcing the Starbucks College Achievement Plan two years ago, the company has enrolled more than 6,300 U.S. partners in the program and is on track to celebrate 1,000 graduates in 2017, with a commitment to graduating 25,000 partners from the program by 2025. Early results from the program are showing that participants have twice the retention rate and are more than four times more likely to achieve a promotion in responsibility.

In the spirit of the company’s Mission and Values, Starbucks CUP (Caring Unites Partners) Fund, an emergency financial assistance program for partners impacted by natural disasters and family emergencies, generated over $2.1 million in contributions from partners in FY16 through a combination of “round up” in stores and payroll contributions. Since it launched in 1998, partners have raised more than $18 million toward the CUP Fund. The company also matched $784,000 in individual partner charitable donations and volunteer hours, and donated more than 300,000 meals since launching its FoodShare initiative in select U.S. markets in March 2016. Looking ahead, Starbucks plans to roll out FoodShare to all 8,000+ U.S. company-operated stores over the next three years.

*Revenue and EPS growth are based on non-GAAP FY16 results. A reconciliation of FY16 GAAP revenue and EPS to non-GAAP revenue and EPS <a href="https://storiesadmin.starbucks.com/wp-content/uploads/2019/01/Starbucks_Investor_Day_Press_Release_2016.pdf">can be found here</a>.

Forward Looking Statement

Certain statements contained herein are “forward-looking statements” within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “anticipate,” “expect,” “believe,” “could,” “estimate,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based upon information available to Starbucks as of the date hereof, and Starbucks actual results or performance could different materially from those stated or implied due to risks and uncertainties associated with its business. These risks and uncertainties include, but are not limited to, fluctuations in U.S. and international economies and currencies, our ability to preserve, grow and leverage our brands, potential negative effects of incidents involving food or beverage-borne illnesses, tampering, contamination or mislabeling, potential negative effects of material breaches of our information technology systems to the extent we experience a material breach, material failures of our information technology systems, costs associated with, and the successful execution of, the company’s initiatives and plans, the acceptance of the company’s products by our customers, the impact of competition, coffee, dairy and other raw materials prices and availability, the effect of legal proceedings, and other risks detailed in the company filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Starbucks Annual Report on Form 10-K for the fiscal year ended October 2, 2016. The company assumes no obligation to update any of these forward-looking statements.

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Starbucks announces innovations to further accelerate momentum of the company's growth.

Starbucks Presents its Five-Year Plan at Investor Conference

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Stories to inspire and nurture the human spirit

Starbucks Stories

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Starbucks Corporation

Starbucks Presents its Five-Year Plan for Strong Global Growth

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Q4 Comparable Store Sales Up 5% in Americas, 4% in the U.S., 6% in China and 4% Globally

Q4 GAAP EPS Up 26% to a Record $0.54; Record Non-GAAP EPS of $0.56 Includes $0.06 for Extra Week

New Stores Opened in the U.S. and China in FY16 Deliver Record AUV's, ROI and Profitability; Company Issues Strong Outlook for Fiscal 2017

Board of Directors Approves 25% Increase in Quarterly Dividend to $0.25 Per Share

SEATTLE; November 3, 2016 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 14-week fiscal fourth quarter and 53-week fiscal year ended October 2, 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.

Q4 Fiscal 2016 Highlights:​

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Fiscal Year 2016 Highlights:

PDF: <a href="https://storiesadmin.starbucks.com/wp-content/uploads/2019/01/Q4_FY16_Starbucks_Earnings_Release.pdf">Detailed financial data</a>

“Starbucks record Q4 and fiscal 2016 financial and operating results in the face of ongoing economic, consumer and geopolitical headwinds, and the significant investments we continue to make in our people and our business, once again demonstrate the power, relevance and resilience of the Starbucks business and brand,” said Howard Schultz, Starbucks chairman and ceo. “The trust and confidence our customers have in the Starbucks brand - and in our store partners - is propelling our business forward in markets and channels around the world as never before.”

"Starbucks Q4 of fiscal 2016 was the most profitable quarter - capping off the most profitable year - in our more than 24 years as a public company," said Scott Maw, cfo. "The strength and health of our business enables us to both fund profitable growth and return significant cash back to shareholders - a record $3.2 billion in fiscal 2016 alone."

Starbucks issues strong outlook for fiscal 2017, and Board of Directors approves 25% increase in quarterly dividend to $0.25 per share.

Starbucks Reports Record Q4 and Record FY16 Results

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SEATTLE; August 24, 2016 – Starbucks Corporation (NASDAQ: SBUX) today announced the company will present at the Goldman Sachs 23rd Annual Global Retailing Conference on Wednesday, September 7, 2016 at 3:55 p.m. ET.

The presentation will be webcast and can be accessed at <a href="http://investor.starbucks.com/phoenix.zhtml?c=99518&amp;p=irol-irhome">http://investor.starbucks.com</a>. A replay of the webcast will be available at the same URL until October 7, 2016.

Starbucks announced the company will present at the Goldman Sachs 23rd Annual Global Retailing Conference on Wednesday, September 7, 2016 at 3:55 p.m. ET.

Starbucks to Present at Goldman Sachs Global Conference

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Starbucks to Present at Goldman Sachs 23rd Annual Global Retailing Conference

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Today (August 2), Starbucks issued a recall for stainless steel beverage straws which are rigid, posing an injury risk.

The recall involves reusable stainless steel, Cold-to-Go food-grade drinking straws in two sizes. The straws were packaged and sold in sets of three and were also sold as a component of two sizes of stainless steel beverage cups: Grande 16-ounce (473 milllitre) cups and Venti 24-ounce (710 millilitre) cups. The straws feature a ridge at the bottom that keeps the straw attached to the lid. The Grande straws measure approximately 9.5 inches and the Venti straws measure approximately 10.4 inches.

Starbucks has received three reports in the U.S. and one in Canada of mouth lacerations to young children while drinking. About 2.5 million units were sold in the U.S., and additional 301,000 were sold in Canada. The items were sold in Starbucks® stores nationwide, and online at Starbucks.com.

Consumers should not allow children to handle or use the stainless steel straws. Customers with questions should visit their local Starbucks or call 800-782-7282 from 3 a.m. to Midnight PT daily for more information.

U.S. customers who need more details on the recall should visit: <a href="http://www.cpsc.gov/en/Recalls/2016/Starbucks-to-Recall-Stainless-Steel-Beverage-Straws-to-Provide-New-Warnings/">CPSC</a>

Canadian customers who need more details on the recall should visit: <a href="http://healthycanadians.gc.ca/recall-alert-rappel-avis/index-eng.php?cat=99">Health Canada</a>

<a href="https://storiesadmin.starbucks.com/wp-content/uploads/2019/01/Safety_Notice_-_French_Version.pdf">Please click here to view the French version of this information </a>

Starbucks Recalls Stainless Steel Beverage Straws - Starbucks Stories

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Starbucks Recalls Stainless Steel Beverage Straws

The recall involves reusable stainless steel Cold-to-Go food grade drinking straws in two sizes. The straws were packaged and sold in sets of three and were also sold as a component of two sizes of stainless steel beverage cups.

https://stories.starbucks.com/press/2016/starbucks-recalls-stainless-steel-beverage-straws/

Starbucks Statement on U.S. Beverage Price Increases

On July 12, Starbucks made a small price adjustment in U.S. company-operated stores. Depending on the market, customers will experience increases of 10 to 20 cents on select sizes of brewed coffee, and 10 to 30 cents on espresso beverages and tea lattes. We expect the average customer ticket to increase by about 1 percent as a result of these beverage adjustments, however, 65 percent of beverage prices have not changed. 

Pricing is continually evaluated on a product-by-product and market-by-market basis in our stores in order to balance business needs while continuing to provide value to our loyal customers. We are committed to providing value to our customers in meaningful ways, including Starbucks Rewards, special in-store promotions and competitive pricing, and believe that our approach to value properly balances the experience we provide customers with our need to effectively run our business.

On July 12, Starbucks is planning a small price increase on select beverages. Unfortunately, that price adjustment was prematurely entered into the point of sale systems in our U.S. company-operated stores. As a result, some customers were charged incorrectly. The maximum any customer could have been overcharged is 30 cents per beverage. 

The error has been corrected and we sincerely apologize to our customers for the inconvenience. If a customer believes this mistake impacted the price of their beverage, we encourage them to please contact Starbucks Customer Service at 1-800-782-7282, and we will gladly make this right. 

On July 12, Starbucks is planning a small price increase on select beverages. Unfortunately, that price adjustment was prematurely entered into the point of sale systems today in our U.S. company-operated stores. As a result, some customers were charged incorrectly. The maximum any customer could have been overcharged is 30 cents per beverage.

The error has been identified and we are actively deploying the solution to our systems. We sincerely apologize to our customers for the error and inconvenience. If a customer believes this mistake impacted the price of their beverage, we encourage them to please contact Starbucks Customer Service at 1-800-782-7282, and we will gladly make this right. 

Starbucks Statement on System Error - Starbucks Stories

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On July 12, Starbucks is planning a small price increase on select beverages. Unfortunately, that price adjustment was prematurely entered into the point of sale systems in our U.S. company-operated stores.

https://stories.starbucks.com/press/2016/starbucks-statement-on-system-error/

Starbucks Statement on System Error

Former Johnson &amp; Johnson Senior Executive to join Starbucks Senior Leadership Team and lead the Global Supply Chain Organization

SEATTLE June 14, 2016 – Starbucks Corporation (NASDAQ: SBUX) today announced the appointment of Hans Melotte as executive vice president, Global Supply Chain, effective June 27. In this role, Melotte will lead Starbucks Global Supply Chain organization, which helps power Starbucks operations in more than 70 countries worldwide. Most recently, Melotte served as Johnson &amp; Johnson’s Chief Procurement Officer, where he oversaw the company’s global procurement team and led the transformation of the procurement function to becoming a best in class organization.

“Hans brings more than 25 years of experience from highly-respected consumer brands and the deep leadership and technical expertise necessary to take our game to the next level,” said Kevin Johnson, president and chief operating officer, Starbucks. “He will play a critical role in driving the supply chain agenda across the business and leading our ongoing efforts to create a scalable and agile function that enables growth for Starbucks around the world. With his strong track-record and ambitious vision for the organization, Hans’ leadership will help accelerate the pace of innovation in our business processes and transform the way we support our retail stores and distribution channels in terms of both efficiency and effectiveness.”

Melotte will report to Johnson and serve as a member of Starbucks senior leadership team. He will be responsible for end-to-end supply chain operations globally spanning sourcing and supplier relationships, distribution, planning, commercialization, transportation and store delivery – ensuring the company’s supply chain roadmap supports the core business while at the same time enabling key strategic initiatives and the growth of Starbucks business around the globe.

“I’ve had the opportunity to lead a truly world-class procurement organization at Johnson &amp; Johnson, and as I embark on this new chapter, I am honored to join Starbucks and help shape the future of its global supply chain operations,” said Melotte.

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Melotte’s career spans nearly three decades of supply chain expertise and global business leadership. Most recently, he served as Johnson &amp; Johnson’s Chief Procurement Officer, where he oversaw the procurement team across 60 countries. During his time with Johnson &amp; Johnson he was recognized for his people leadership and held roles in multiple regions across the Consumer and Pharmaceutical businesses in procurement, supply chain, shared services and innovation. Prior to Johnson &amp; Johnson, Melotte worked at Procter &amp; Gamble and Coopers &amp; Lybrand.

Originally from Belgium, Melotte received a Master's Degree in business from the University of Louvain. In 2013, he was named as one of the “Top 10 Most Influential and Thought Leader CPO’s” in the U.S. In 2010, he was honored as the “Procurement Leader of the Year.” Melotte also serves as Chairman of the Board of Directors of the Institute of Supply Management (ISM), and is also a member of the Board of Directors of International Schools Services (ISS).

Melotte will be relocating to Seattle from New Jersey with his family. He will be based in the Starbucks Support Center beginning June 27.

Former Johnson & Johnson Senior Executive to join Starbucks Senior Leadership Team. In this role, Melotte will lead Starbucks Global Supply Chain organization, which helps power Starbucks operations in more than 70 countries worldwide.

Starbucks Appoints Hans Melotte to Lead Global Supply Chain

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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: <a href="https://storiesadmin.starbucks.com/wp-content/uploads/2019/01/Q2_FY16_Starbucks_Earnings_Release.pdf">Detailed financial data </a>

"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.”

Company adds 900,000 Starbucks Rewards loyalty members in the U.S. since Q1, reaffirms FY16 growth targets and announces additional 100M share repurchase authorization.

Starbucks Reports Record Q2 Financial and Operating Results

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SEATTLE; April 6, 2016 – Starbucks Corporation (NASDAQ: SBUX) plans to release its second quarter fiscal year 2016 financial results after the market close on Thursday, April 21, 2016, with a conference call to follow at 2:00 p.m. PT.

The conference call will be webcast and can be accessed on the company’s website: <a href="http://investor.starbucks.com/phoenix.zhtml?c=99518&amp;p=irol-irhome">http://investor.starbucks.com</a>. A replay of the webcast will be available on the company’s website until end of day Saturday, May 21, 2016.

Starbucks to release Q2 financial results after the market close on Thursday, April 21, 2016.

Starbucks Announces Q2 FY16 Results Conference Call

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During Starbucks 2016 Annual Meeting of Shareholders, Starbucks chairman and ceo Howard Schultz expanded on a question he posed two years ago: What is the role and responsibility of a for-profit company? Schultz asked partners (employees), shareholders and customers: “What is the role and responsibility of all of us, as citizens?” 

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<a href="https://news.starbucks.com/multimedia/type/17">Download video for media use</a>

Schultz said he has “struggled for weeks to find the right words to express the pain I feel in my heart about where America is headed and the cloud hanging over the American people.” And he said there are times when he’s had a hard time recognizing “who we are and who we are becoming.”

Two years ago, on the same stage in Seattle, Schultz challenged shareholders to think about the role and responsibility of a for-profit company. In the two years since, “dysfunction and polarization have worsened,” he said.

Viewing the American Dream as a “reservoir” that is replenished with the values, work ethic and integrity of the American people, Schultz said, “Sadly, our reservoir is running dry, depleted by cynicism, despair, division, exclusion, fear and indifference.”

He suggested citizens fill the reservoir of the American Dream back up, “not with cynicism, but with optimism. Not with despair, but with possibility. Not with division, but with unity. Not with exclusion, but with inclusion. Not with fear, but with compassion. Not with indifference, but with love.”

“It’s not about the choice we make every four years,” Schultz said. “This is about the choices we are making every day.”

Howard Schultz Calls for Civility and Values-Based Leadership - Starbucks Stories

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Howard Schultz Calls for Civility and Values-Based Leadership

Starbucks chairman and ceo, Howard Schultz, posed this question to partners (employees), shareholders and thousands who watched the live web broadcast: “What is the role and responsibility of us, as citizens?”

https://stories.starbucks.com/press/2016/howard-schultz-on-role-and-responsibility-of-citizens/

The Board of Directors of Starbucks Corporation is responsible for overseeing the management of the company. They are charged with upholding <a href="http://news.starbucks.com/views/starbucks-mission-and-values">Starbucks Mission and Values</a> while ensuring that the long-term interests of the shareholders are served. Board members have diverse backgrounds, including leadership roles in retail, government, finance, software, and technology sectors. One-quarter of the current Board members are women.

Howard Schultz, chairman and chief executive officer of Starbucks, first walked into Starbucks in Seattle’s Pike Place Market in 1981. Drawn to Seattle and its extraordinary coffee culture, Schultz moved from his native New York and joined Starbucks, in 1982, as director of operations and marketing when Starbucks had only four stores. A year later, in 1983, Schultz traveled to Italy and became captivated with Italian coffee bars and the romance of the coffee experience. He had a vision to bring the Italian coffeehouse tradition to America. He wanted to create a place for human connection, conversation and one that fostered a sense of community – a third place between work and home. He left Starbucks for a short period of time to start his own Il Giornale coffeehouses and returned in August 1987 as chief executive officer to purchase Starbucks with the help of local investors.

Chairman since 2000, Schultz resumed the role of president and chief executive officer in January 2008. Since his return, he has led a transformation of the company, bringing the company to sustainable, profitable growth with a renewed focus on Starbucks coffee heritage, innovation and the customer experience. He has also galvanized leaders both inside and outside the company to take action to help local communities. He spearheaded efforts to create small business jobs through Create Jobs for USA, launched an initiative to hire more U.S. military veterans and their spouses, and opened up new educational opportunities for Starbucks partners to finish school through the Starbucks College Achievement Plan. <a href="http://news.starbucks.com/leadership/howard-schultz">Fu</a><a href="https://news.starbucks.com/leadership/howard-schultz">ll biography.</a>

William Bradley has been a Starbucks director since June 2003. Since 2000, Senator Bradley has been a Managing Director of Allen &amp; Company LLC, an investment banking firm. From 2001 until 2004, he acted as Chief Outside Advisor to McKinsey &amp; Company’s non-profit practice. In 2000, Senator Bradley was a candidate for the Democratic nomination for President of the United States. He served as a Senior Advisor and Vice Chairman of the International Council of JP Morgan &amp; Co. from 1997 through 1999. During that time, Senator Bradley also worked as an essayist for CBS Evening News, and as a Visiting Professor at Stanford University, the University of Notre Dame and the University of Maryland. Senator Bradley served in the U.S. Senate from 1979 until 1997, representing the State of New Jersey. Prior to serving in the U.S. Senate, he was an Olympic gold medalist in 1964, and from 1967 through 1977 he played professional basketball for the New York Knicks, during which time they won two world championships. Senator Bradley previously served on the Boards of Directors of Seagate Technology, Willis Group Holdings Limited and QuinStreet, Inc.

<a href="https://news.starbucks.com/news/starbucks-appoints-mary-dillon-to-board-of-directors">Mary Dillon</a> has been a Starbucks director since January 2016. Since July 2013, Dillon has served as Chief Executive Officer and a member of the Board of Directors of Ulta Salon, Cosmetics &amp; Fragrance, Inc., a beauty products retailer. Prior to joining Ulta, she served as President and Chief Executive Officer and a member of the board of directors of United States Cellular Corporation, a provider of wireless telecommunications services, beginning in June 2010. Prior to joining U.S. Cellular, Dillon served as Global Chief Marketing Officer and Executive Vice President of McDonald’s Corporation from 2005 to 2010, where she led the company’s worldwide marketing efforts and global brand strategy. Prior to joining McDonald’s, Dillon held several positions of increasing responsibility at PepsiCo Corporation, including as President of the Quaker Foods division from 2004 to 2005 and as Vice President of Marketing for Gatorade and Quaker Foods from 2002 to 2004. Dillon previously served as a director of Target Corporation from 2007 to 2013.

Robert Gates has been a Starbucks director since May 2012. Secretary Gates served in numerous roles in the Executive Branch of the U.S. government for nearly half a century, culminating as Secretary of Defense from December 2006 to June 2011. In October 2013, Secretary Gates was elected to the National Executive Board of the Boy Scouts of America. In May 2014, he was named its National President for a two-year term. In September 2011, Secretary Gates was named Chancellor of the College of William &amp; Mary. From August 2002 to December 2006, he served as president of Texas A&amp;M University. Secretary Gates has previously been a member of the Board of Directors of several companies, including Brinker International, Inc., NACCO Industries, Inc., Parker Drilling Company and the Board of Independent Trustees of the Fidelity Funds.

Mellody Hobson has been a Starbucks director since February 2005. Hobson has served as the President and a Director of Ariel Investments, LLC, a Chicago-based investment management firm since 2000, and as the Chairman since 2006 and a Trustee since 1993 of the mutual funds it manages. She previously served as Senior Vice President and Director of Marketing at Ariel Capital Management, Inc. from 1994 to 2000, and as Vice President of Marketing at Ariel Capital Management, Inc. from 1991 to 1994. Hobson works with a variety of civic and professional institutions, including serving as a Board Member of the Chicago Public Education Fund and as Chairman of After School Matters, which provides Chicago teens with high quality out-of-school time programs. Hobson also serves on the Boards of Directors of The Estee Lauder Companies, Inc. and DreamWorks Animation SKG, Inc., where she is Chairman of the Board. Additionally, she is on the Board of Governors of the Investment Company Institute. Hobson served on the Board of Directors of Groupon, Inc. through May 20, 2014.

Kevin Johnson has served as Starbucks president and chief operating officer since March 2015 and has been a Starbucks director since March 2009. Johnson served as Chief Executive Officer of Juniper Networks, Inc., a leading provider of high-performance networking products and services, from September 2008 to December 2013. He also served on the Board of Directors of Juniper Networks from September 2008 through February 2014. Prior to joining Juniper Networks, Johnson served as President, Platforms and Services Division for Microsoft Corporation, a worldwide provider of software, services and solutions. Johnson was a member of Microsoft’s Senior Leadership Team and held a number of senior executive positions over the course of his 16 years at Microsoft. Prior to joining Microsoft in 1992, Johnson worked in International Business Machine Corp.’s systems integration and consulting business. He also serves on the board of directors of Auction.com, LLC. <a href="http://news.starbucks.com/leadership/kevin-johnson">Full biography</a>.

Joshua Cooper Ramo has been a Starbucks director since May 2011. Since July 2015 Cooper Ramo has served as Co-Chief Executive Officer and Vice Chairman of Kissinger Associates, a strategic advisory firm where he has served as Vice Chairman since 2011 and been employed since 2005. He was previously the Managing Partner and a senior advisor for the Office of John L. Thornton, a corporate advisory specialist and an advisor to Goldman Sachs, from 2003 to 2005. Cooper Ramo spent his early career as a journalist, most recently with TIME magazine, from 1996 to 2003 serving as Senior Editor and Foreign Editor. He is a leading China scholar and has written several papers on China’s development that have been distributed in China and abroad. In 2008, Cooper Ramo served as China Analyst for NBC during the Summer Olympics in Beijing. He is the author of The New York Times best-selling book, “The Age of the Unthinkable.” Cooper Ramo has been a term member of the Council on Foreign Relations, Asia 21 Leaders Program, World Economic Forum’s Young Global Leaders and Global Leaders for Tomorrow, and co-founder of the U.S.-China Young Leaders Forum. He also serves on the Board of Directors and Audit Committee of FedEx Corporation.

James Shennan has been a Starbucks director since March 1990. Shennan served as a General Partner of Trinity Ventures, a venture capital organization, from September 1989 to July 2005, when he became General Partner Emeritus. Prior to joining Trinity Ventures, he served as the Chief Executive of Addison Consultants, Inc., an international marketing services firm, and two of its predecessor companies. Shennan previously served on the Board of Directors of P.F. Chang’s China Bistro, Inc. until July 2012.

Clara Shih has been a Starbucks director since December 2011. Shih is Chief Executive Officer and a Board Member of Hearsay Social, Inc., an enterprise software company serving Fortune 500 brands that she co-founded in August 2009. From June 2006 to June 2009, she served as Product Management Director, AppExchange of salesforce.com inc., an enterprise software company. From 2004 to 2006, she served as Associate, Strategy and Business Operations for Google, Inc. Previously, Shih was a software engineer at Microsoft Corporation. Shih, the creator of the first business application on Facebook, is the author of “The Facebook Era,” a marketing textbook at Harvard Business School. In 2011, she was named one of Businessweek’s Top Young Entrepreneurs, one of Fortune’s Most Powerful Women Entrepreneurs and one of CNN Money’s “40 under 40: Ones to Watch.”

Javier Teruel has been a Starbucks director since September 2005. Teruel served as Vice Chairman of Colgate-Palmolive Company, a consumer products company, from July 2004 to April 2007, when he retired. Prior to being appointed Vice Chairman, Teruel served as Colgate-Palmolive’s Executive Vice President responsible for Asia, Central Europe, Africa and Hill’s Pet Nutrition. After joining Colgate in Mexico in 1971, Teruel served as Vice President of Body Care in Global Business Development in New York and President and General Manager of Colgate-Mexico. He also served as President of Colgate-Europe, and as Chief Growth Officer responsible for the company’s growth functions. Teruel currently serves as a Partner of Spectron Desarrollo, SC, an impact investment and consulting firm and as Chairman of Alta Growth Capital, a private equity firm. He previously served on the Boards of Directors of The Pepsi Bottling Group, Inc. and Corporacịn Geo S.A.B. de C.V. He currently serves on the Boards of Directors of J.C. Penney Company, Inc. and Nielsen Holdings plc.

Myron Ullman has been a Starbucks director since January 2003. Since August 2015, Ullman has served as Executive Chairman of J.C. Penney Company, Inc., a chain of retail department stores. From April 2013 to August 2015, Ullman served as Chief Executive Officer and a member of the Board of Directors of J.C. Penney Company, Inc. Ullman had previously served as Executive Chairman of J.C. Penney Company, Inc., from November 2011 to January 2012, and as the Chairman of the Board of Directors and Chief Executive Officer from December 2004 to November 2011. Ullman served as Directeur General, Group Managing Director of LVMH Möet Hennessy Louis Vuitton, a luxury goods manufacturer and retailer, from July 1999 to January 2002. From January 1995 to June 1999, he served as Chairman and Chief Executive Officer of DFS Group Limited, a retailer of luxury branded merchandise. From 1992 to 1995, Ullman served as Chairman and Chief Executive Officer of R.H. Macy &amp; Co., Inc. Ullman previously served on the Boards of Directors for Ralph Lauren Corporation, Taubman Centers, Saks, Inc. and Pzena Investment Management, Inc. He served as the Chairman of the Federal Reserve Bank of Dallas through the end of 2014.

Craig Weatherup has been a Starbucks director since February 1999. Weatherup worked for PepsiCo, Inc. for 24 years and served as Chief Executive Officer of its worldwide Pepsi-Cola business and President of PepsiCo, Inc., retiring in 1999. He also led the initial public offering of The Pepsi Bottling Group, Inc., where he served as Chairman and Chief Executive Officer from March 1999 to January 2003. Weatherup also serves on the Board of Directors of Macy’s, Inc.

As Starbucks 2016 Shareholders Meeting Nears, Meet the Board of Directors - Starbucks Stories

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As Starbucks 2016 Shareholders Meeting Nears, Meet the Board of Directors

Starbucks Board members have diverse backgrounds including leadership roles in the worlds of retail, government, finance, software, and technology sectors.

https://stories.starbucks.com/press/2016/starbucks-board-of-directors/

SEATTLE, March 16, 2016 – Starbucks Corporation (NASDAQ: SBUX) will hold its 2016 Annual Meeting of Shareholders on Wednesday, March 23, 2016 at 10:00 a.m. PT.

The event will be webcast and can be accessed at <a href="http://investor.starbucks.com/phoenix.zhtml?c=99518&amp;p=irol-irhome">http://investor.starbucks.com</a>. A replay of the webcast will be available on the company’s website until Friday, April 22, 2016.

Starbucks will hold its 2016 Annual Meeting of Shareholders on Wednesday, March 23, 2016 at 10:00 a.m. PT.

Starbucks to Webcast 2016 Annual Meeting of Shareholders

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https://stories.starbucks.com/press/2016/starbucks-to-webcast-2016-annual-meeting-of-shareholders/

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<a href="https://news.starbucks.com/leadership/cliff-burrows">Cliff Burrows</a> doesn’t hold back when the subject is art.

After attending the opening celebration of <a href="http://www.seattleartmuseum.org/Exhibitions/wiley">Kehinde Wiley’s “A New Republic”</a> exhibition at the Seattle Art Museum (SAM), Cliff Burrows, Starbucks group president, U.S. and Americas, enthusiastically endorses the artist and his work.

“It’s a hugely accessible collection,” Burrows said. “It’s going to be a very popular exhibition, and I’d encourage people to see it because it helps reframe what art is about.”

A member of the Seattle Art Museum’s Board of Trustees, Burrows has fostered a lifelong passion for visual arts that extends from his youth in his native Wales to Zambia, London, Amsterdam and Seattle, where he’s resided since taking over Starbucks U.S. operations in 2008.

Burrows joined Starbucks in 2001 as managing director of the United Kingdom. “I really wanted to get into a business where it was about the human connection and what better way to do that than to sell coffee in a tea-drinking country,” Burrows said with a laugh. Prior to coming to America, Burrows spent two years as president of Starbucks Coffee Europe, Middle East and Africa, leading the region as it grew to more than 1,350 stores in 24 countries.

As part of the Starbucks Newsroom’s quarterly series on company leaders, we spoke to Burrows about the impact art has had on his professional life, his career path before joining Starbucks, and advice for Starbucks partners (employees).

Where does your engagement with the art world come from? 

For no reason I can recall, I developed a passion for drawing. There was little or no encouragement from the family. It was just something that I truly enjoyed doing from a very early age. I eventually studied art at school. I think the teachers and my parents had a different view of my artistic abilities. One said I should go ahead and study fine arts at college and the other one said, “He can’t paint a barn door without having drips running down it.”

I eventually went into retail and had a chance to work for a company run by an entrepreneur named Terrance Conran. Habitat Designs grew up in the ‘60s. It was about home furnishings – bringing beautiful design to Spartan post-World War II Britain. I just thought I’d truly died and gone to heaven, because here I could work in retail and I was surrounded by beautiful, well-designed products.

Part of the transformation of Habitat Designs, which I was fortunate to play a part in, was bringing young British artists into the retail space. We did the first exhibition of Tracy Emin’s work, as well as Gary Hume, Gavin Turk and quite a few other young British artists. Over time, that led to a real connection with the Hayward Gallery in London. I just loved the way that gallery showed the work. It was an intimate-sized gallery and always current and topical – often challenging.

Fast forward, I moved to Amsterdam and was surrounded by museums. I lived on the same street as the Rijksmuseum and the Van Gogh collection there.

Then I moved to America. In 2008, there was no time for art or color or frankly much personal richness. For 18 months I just had my head down, working with the team on the transformation of Starbucks U.S. operation. As the company came out of that phase, I knew I wanted to get involved in community and I needed something that gave me some energy and perspective. I was introduced to SAM. It has been something that keeps on giving. 

How do you think your formative years shaped your management style? 

My dad worked in manual jobs all his life. My parents were always working hard to keep money in the bank and trying to progress to a better life. And they were always bold. They moved to Africa when I was 8 and sent me back to school in the UK when I was 10. So I learned independence and to embrace diversity at a very early age. I was at boarding school in the UK with people from all over the world. At the age of 10, I shared my dormitory with an American, a Nigerian, a Libyan, a Saudi Arabian and an Indian.

That inspired openness and curiosity, and a passion for travel. It’s about meeting people and making connections. We do those connections over coffee and the parallel for me is the connection through art.

What was your first encounter with Starbucks?

Good friends were living in New York and we were traveling over to see them. Jet lagged on Saturday morning down by the West Side Highway, my wife and I went for a walk by the World Financial Center. I just remember, “Oh! Coffeeshop!” I wandered in and had my first true Starbucks experience.

I was at my old company for about 19 years. It was time to move on and, by chance, someone introduced me to Starbucks and said, “Have you ever read Howard Schultz’s book, ‘Pour Your Heart into It’?” I got a copy and was just browsing that when I received a call. I believe in fate. I believe in opportunity. I went to a series of interviews where Starbucks truly came to life for me.

In November 2000, I came out to meet the team in Seattle and I went to Pike Place Market and I just said, “I understand the third place everyone has been talking about.” The store experience was so authentic. It was part of the market. It showed me community. It was about people coming together over coffee.

I was able to walk the streets of Seattle early in the morning and see the different stores and how they came to life within their local communities. Then I came to the SSC, met some incredible people and said, “I’ve got to work for this company. The rest is, as they say, history.” 

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