Introduces Three-Year Financial Roadmap, Delivering Annual 7-9% Comparable Store Sales Growth, 10-12% Revenue Growth, and 15-20% Non-GAAP EPS Growth

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SEATTLE – Starbucks (NASDAQ: SBUX) today hosted its biennial Investor Day in Seattle where interim chief executive officer Howard Schultz, chief financial officer Rachel Ruggeri, and Starbucks leaders showcased the company’s Reinvention plan to an in-person audience of more than 150 investors. Presentations highlighted decisive actions and targeted investments in partners, customers, and stores that are expected to accelerate the company’s long-term growth, progressively expand operating margin, and drive high-teens non-GAAP EPS growth annually through fiscal 2025.

“As we execute on our Reinvention plan, we are building on our 51-year history of market leading innovation to position our business and our brand for the next chapter of growth,” said Schultz. “Guided directly by our partners, we have already begun to take action on an inspired roadmap to build the future of Starbucks, all while staying true to our mission of uplifting communities through a shared love for coffee and further extending our coffee leadership and innovation. I am confident that our partners and world-class leadership team will capture the significant global growth opportunity ahead, unlocking value for all our stakeholders.”

Schultz also introduced incoming ceo Laxman Narasimhan, who shared his enthusiasm for the Reinvention plan. Narasimhan will officially join Starbucks on October 1, 2022 and will work closely with Schultz before assuming the ceo role and joining the Board in April 2023. Schultz will remain as a member of the Board after the transition.

Starbucks Unveils Roadmap for Accelerated EPS Growth

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In connection with its Reinvention plan, Starbucks introduced a framework for accelerated earnings growth over the next three years, underpinned by enhanced comparable store sales growth, increased store count growth, continued margin expansion, and disciplined capital allocation.

“Starbucks is a growth company, and our accelerated expansion is a direct reflection of the expected returns from our Reinvention plan,” said Ruggeri. “By making strategic and highly targeted investments to drive value for partners, Starbucks will also drive value for customers and shareholders, while managing costs, improving margins, and elevating the Starbucks Experience for all stakeholders.”

From fiscal 2023 to fiscal 2025, Starbucks expects comparable store sales growth to be in the range of 7% to 9% annually, both globally and in the U.S., up from the previous range of 4% to 5%. In China, Starbucks expects outsized comparable store sales performance in fiscal 2023 and fiscal 2024, as the market laps the severe impact of COVID-related lockdowns, with growth normalizing in the new range of 4% to 6% in fiscal 2025, an increase from the prior range of 2% to 4%, reflecting an increased digital capability and confidence in the vast opportunity ahead in this key growth market.

The company’s global store portfolio is expected to grow by roughly 7% annually on a net basis from fiscal 2023 to fiscal 2025, up from the previous estimate of approximately 6%. This increase is driven largely by accelerated growth across the U.S. portfolio as purpose-built store formats in conjunction with the Reinvention plan is expected to deliver net new store growth of 3% to 4% annually, compared to approximately 3% as previously estimated. Starbucks also expects to continue robust store development in China, with net unit growth of approximately 13% annually. Globally, Starbucks expects to approach 45,000 stores by the end of 2025, and is well on track to reach approximately 55,000 stores by 2030, as projected at its 2020 Investor Day.

Starbucks now expects global revenue growth in the range of 10% to 12% annually from fiscal 2023 to fiscal 2025. This represents an improvement from the company’s previous range of 8% to 10%, driven by priority investments that elevate partner engagement and store efficiency, industry-leading digital programs, an engaged and growing Starbucks® Rewards membership base, game-changing product innovation, and a rapidly expanding global footprint. The company expects solid margin expansion in fiscal 2023 with progressively more expansion in fiscal 2024 and fiscal 2025. Non-GAAP EPS growth is expected to be in the range of 15% to 20% annually through fiscal 2025, representing an improvement from the previous range of 10% to 12%.

Starbucks plans to resume its share buyback program reinstituting a healthy return of shareholder capital, yielding an annual EPS benefit of approximately 1%, net of incremental interest, beginning in fiscal year 2024. Between dividends and share buybacks, the company expects to return approximately $20 billion to its shareholders in the next three years.

Centering the Partner Experience in a Thriving Network

Starbucks partners are at the core of the Reinvention plan, as the company recommits to investing in its partner base with a three-pronged model of support that empowers partners to thrive at work, thrive as individuals, and thrive together. Specifically, by investing in partners through recruiting, training, and onboarding, partners will be better empowered and equipped to deliver high-quality customer experiences, uplifting brand affinity and customer loyalty. This, in turn, enables increased value back to partners through wages, benefits, programming, and tools for continued personal growth, which are expected to increase retention and productivity.

For fiscal 2023, Starbucks has identified a number of near-term solutions that will be implemented to ensure a thriving partner experience:

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This important work is beginning with Starbucks over 9,000 U.S. company-operated stores. Starbucks then plans to rapidly implement the most effective and scalable best practices to its other U.S. and global stores.

Unlocking Experiential Convenience for Customers

As part of the Reinvention plan, Starbucks is unlocking the intersection of convenience and connection by introducing enhancements to the customer experience across retail and digital that meet customers wherever they are, expanding the Third Place experience beyond the physical store. As part of these efforts, Starbucks is investing in purpose-built store concepts, delivering beverage innovation, and expanding effortless digital convenience.

Investing in purpose-built store concepts: Starbucks is reimagining the store environment by introducing purpose-built store concepts that meet customers wherever and whenever they want and improve the partner experience. This includes investing an incremental $450M in the existing U.S. store base in fiscal year 2023 with continued investment in fiscal 2024 and 2025. Starbucks expects these investments will create efficiencies, unlock capacity for partners, and enable increased throughput to support increasing customer demand. &nbsp;

With new store economics expected to continue delivering 50% return on investment and 25% cash margin, Starbucks looks to accelerate U.S store growth to 3-4% annually.&nbsp; The company sees tremendous opportunity to further diversify and expand formats across cafes, pick up, delivery-only and drive-thru only locations. The diversified portfolio of stores and customer channels such as Mobile Order &amp; Pay will enable Starbucks to further meet its customers whenever and wherever they want. &nbsp;

Delivering beverage innovation: To improve partner and customer experiences, Starbucks has developed the Siren System, a proprietary new equipment innovation designed to meet the growing demand for customization of hot and cold beverages and warm foods. &nbsp;As part of the Siren System, Starbucks has redesigned its cold beverage station, which significantly reduces the time and number of steps to make cold beverages, unlocking productivity gains and ultimately freeing up time for partners to connect with customers. In addition, Starbucks is developing a new way of extracting cold coffee and espresso with the Cold Pressed Cold Brew system. This new, proprietary technology delivers cold press coffee in a matter of seconds and in fewer than four steps, a step-change improvement when compared to today’s cold brew which is steeped for 20 hours and takes more than 20 steps to make. The Cold Pressed Cold Brew will begin testing in stores in fiscal 2023.

Starbucks is also elevating the quality and craft of hot brewed coffee with the launch of Clover Vertica. Using proprietary Clover technology, Clover Vertica offers every customer a freshly ground, freshly brewed cup of hot coffee in just 30 seconds. Starbucks has already begun rolling out this equipment to stores and expects it will be fully deployed to all U.S. stores in the next three years.

Expanding effortless digital convenience: Today’s customers are increasingly prioritizing the effortless, experiential convenience and personalization enabled by Starbucks Rewards, Mobile Order &amp; Pay, and Starbucks Delivers. To make it even easier for customers to get Starbucks when and where they want, Starbucks is growing its Starbucks Delivers program in the U.S. with a new partnership with DoorDash, which will expand to a national scale alongside UberEats in fiscal 2023.

As previously announced, Starbucks is also evolving its Starbucks Rewards program with Starbucks Odyssey, a Web3-enabled experience that will bridge the physical and digital customer experience. Through Starbucks Odyssey, customers will unlock a new generation of experiential benefits – both digitally and in-person – and become a part of a digital community built on human connection.

Accelerating Starbucks Leadership Position in International

Starbucks International segment continues to accelerate growth for the company, with two-thirds of global retail growth over the next three years expected to come from its international business. Underpinning this strong foundation and ongoing momentum is the strength of the licensing model, acceleration of the digital Starbucks Experience, and the purpose-driven growth agenda in China.

Strength of the licensing model: Licensed stores represent more than 50% of the Starbucks International portfolio and are driving a significant portion of future growth through best-in-class operations experience, paired with unparalleled expertise in the markets they operate and the needs of their local customers. Under Starbucks licensing model, licensees are positioned as business partners, who not only operate stores but also invest in and drive innovation at the company – for example, through region-specific beverages – and growth in their markets and across the globe. The licensing model is a key competitive advantage and enabler for Starbucks, culminating in higher return on invested capital and positioning the company to realize the full potential of the brand. In total, Starbucks has over 17,000 licensed stores including 6,500 in the U.S.

Acceleration of the digital Starbucks Experience: While International is still in the early stages of digital expansion, Starbucks has the foundation in place to significantly accelerate growth with 28 million active Starbucks Rewards members internationally. Today, just over 10% of transactions in international licensed stores originate digitally. To accelerate the rollout of the digital Starbucks Experience around the world, Starbucks is unveiling Starbucks Digital Solutions, a platform created exclusively for our International markets to deliver a consistent digital experience for partners and customers in every location.

Purpose-driven growth agenda in China: Even as Starbucks second largest market, China’s coffee market is still in its early stages, and Starbucks is evolving its growth framework in the market to capture its full growth potential. Through the flywheel of continued store expansion, growth in omni-channel, ongoing digitization efforts, increased customer and partner engagement, and the extension of coffee craft and innovation leadership, Starbucks will drive meaningful growth in China, as sales are expected to nearly double over the next three years, while store count is expected to grow by 50%, reaching 9,000 stores.

Long Runway for Growth in At-Home and Ready-to-Drink

Through Starbucks leadership position in the at-home and ready-to-drink channels, the company reaches customers across every major coffee segment, providing an elevated experience wherever its customers are. Today, Starbucks serves 300 million consumer occasions per week across 86 markets in channels outside of its retail stores. Starbucks sees significant opportunity for further growth through portfolio expansion, innovation and leveraging Starbucks partnership expertise. In at-home coffee, Starbucks is expanding its reach with products that highlight its strengths in locally relevant ways, such as the recent launch of Starbucks super-premium mini cups in China, and the upcoming launch of Starbucks® Reserve on Nespresso Vertuo. Starbucks is also innovating and introducing new bold flavors and formats in ready-to-drink, entering the energy category with the launch of Starbucks Baya™ Energy and bringing the Starbucks® Pink Drink, inspired by a global customer favorite, to a convenient new ready-to-drink format.

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A replay of the webcast and slides shown during the event’s presentations will be available on the&nbsp;<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Finvestor.starbucks.com%2Fevents-and-presentations%2Fcurrent-and-past-events%2Fdefault.aspx&amp;esheet=52748568&amp;newsitemid=20220613005808&amp;lan=en-US&amp;anchor=Events+%26amp%3B+Presentations&amp;index=1&amp;md5=8a8881d61fc82bddf6563c5c4ba8fe25">Events &amp; Presentations</a>&nbsp;section of the company’s website&nbsp; on Wednesday, September 14, 2022.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with nearly 35,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or <a href="http://www.starbucks.com">www.starbucks.com</a>.

Non-GAAP Financial Measures

Certain financial measures included in the release are not measures of financial performance under U.S. generally accepted accounting principles (“GAAP”). Certain non-GAAP measures such as earnings per share were not reconciled to the comparable GAAP financial measures because the GAAP measures are not accessible on a forward-looking basis. All forward-looking non-GAAP measures may exclude estimates for acquisitions, divestitures, restructuring, and other items, which are fluid and unpredictable in nature. The company is unable to reconcile these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures with sufficient precision without unreasonable efforts because the company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. The unavailable information could have a significant impact on the company’s GAAP financial results. References in the release are on a non-GAAP basis unless otherwise noted, or if there's no non-GAAP adjustment related to the metric.&nbsp;

Forward-Looking Statements

Certain statements contained herein are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to trends in or expectations relating to the effects of our existing and any future initiatives, strategies, investments and plans, including our reinvention plan, as well as trends in or expectations regarding our financial results and long-term growth model and drivers; our operations in the U.S. and China; our environmental, social and governance efforts; our partners; economic and consumer trends, including the impact of inflationary pressures; impact of foreign currency translation; strategic pricing actions; the conversion of certain market operations to fully licensed models; our plans for streamlining our operations, including store openings, closures and changes in store formats and models; expanding our licensing to Nestlé of our consumer packaged goods and Foodservice businesses and its effects on our Channel Development segment results; tax rates; business opportunities and expansion; strategic acquisitions; our dividends programs; commodity costs and our mitigation strategies; our liquidity, cash flow from operations, investments, borrowing capacity and use of proceeds; continuing compliance with our covenants under our credit facilities and commercial paper program; repatriation of cash to the U.S.; the likelihood of the issuance of additional debt and the applicable interest rate; the continuing impact of the COVID-19 pandemic on our financial results and future availability of governmental subsidies for COVID-19 or other public health events; our ceo transition; our share repurchase program; our use of cash and cash requirements; the expected effects of new accounting pronouncements and the estimated impact of changes in U.S. tax law, including on tax rates, investments funded by these changes and potential outcomes; and effects of legal proceedings. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: the continuing impact of COVID-19 on our business; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, including restrictions on business operations or social distancing requirements, and the duration and efficacy of such restrictions; the resurgence of COVID-19 infections and the circulation of novel variants of COVID-19; fluctuations in U.S. and international economies and currencies; our ability to preserve, grow and leverage our brands; the ability of our business partners and third-party providers to fulfill their responsibilities and commitments; potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, 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; new initiatives and plans or revisions to existing initiatives or plans; our ability to obtain financing on acceptable terms; the acceptance of the Company’s products by our customers, evolving consumer preferences and tastes and changes in consumer spending behavior; partner investments, changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts; failure to attract or retain key executive or employee talent or successfully transition executives; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business including any potential negative effects stemming from the Russian invasion of Ukraine; the prices and availability of coffee, dairy and other raw materials; the effect of legal proceedings; and the effects of changes in tax laws and related guidance and regulations that may be implemented and other risks detailed in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings.

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Press Releases

Press Releases - Starbucks Stories

Stories to inspire and nurture the human spirit

Starbucks Stories

Starbucks Corporation

“As we execute on our Reinvention plan, we are building on our 51-year history of market leading innovation to position our business and our brand for the next chapter of growth,” said Schultz.

Starbucks Enters New Era of Growth Driven by an Unparalleled Reinvention Plan

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Effective September 19, 2022, eligible U.S. partners will have access to new benefits to further financial stability and manage student loan repayments&nbsp;&nbsp;

SEATTLE – Today, building on Starbucks <a href="https://stories.starbucks.com/press/2017/starbucks-commitment-to-partners/" target="_blank" rel="noreferrer noopener">historic commitments</a> to offering leading benefits for its partners (employees), Starbucks Coffee Company announced a set of programs, designed to support eligible partners when it comes to two critical areas of financial well-being: savings and student loan debt.&nbsp;

<a href="https://www.tiktok.com/@starbuckspartners/video/7142535574950366510?is_from_webapp=v1&amp;item_id=7142535574950366510&amp;web_id=7052008764535391750" target="_blank" rel="noreferrer noopener">The new benefits</a>, which will begin on September 19, will contribute to eligible partners’ financial stability and help them manage their higher education debt. Both programs were informed by thousands of conversations with partners over the last several months as the coffee company <a href="https://stories.starbucks.com/stories/2022/a-message-from-howard-schultz-the-next-chapter-of-starbucks-reinvention/">reinvents its future</a>.

“We’ve heard from our partners and know that pressures of inflation, in addition to debt and savings are weighing heavily on them,” said Ron Crawford, SVP Total Rewards, Starbucks. “Providing industry-leading benefits for our partners is a cornerstone of who we are as a company. As we reinvent the future of Starbucks, together with our partners, we knew we had an opportunity to further support the financial well-being of our partners and their families.”

Working with Fidelity, Starbucks is introducing My Starbucks Savings, a new way to help eligible partners save for the unexpected. All eligible U.S. partners will be able to contribute a portion of after-tax pay on a recurring basis directly from their paycheck to a personal savings account. To incentivize savings and account growth, Starbucks will contribute $25 and $50 credits at key saving milestones up to a total of $250 per incentive eligible partner.

“Too many Americans are unprepared financially to handle the unexpected, and this current economic environment only makes it more important to help people establish solid savings behaviors and foundation to cover short-term expenses,” said <a href="https://www.linkedin.com/in/fidelitykevinbarry" target="_blank" rel="noreferrer noopener">Kevin Barry</a>, president of Workplace Investing at Fidelity Investments. “As this program demonstrates, employers are in a position to help, which is why Fidelity is pleased to work with Starbucks and other companies to provide savers with a path to achieving their financial goals, such as emergency savings.”

Starbucks will also launch a Student Loan Management Benefit through Tuition.io to help eligible partners manage and optimize student loan repayments. Through this tool, eligible U.S. partners and their families will have access to new tools, resources and individual coaching to manage student loan debt, such as repayment options and loan refinancing. Tools within the platform will help partners view all their student loan debt in one place and locate the best individual action to take based on their personal repayment scenario and goals. This could include taking advantage of income-based repayment options, refinancing and planning how best to finance education for college-bound students and parents of students.

“Student loan debt remains a tremendous financial burden for the nearly 48 million U.S. consumers who have borrowed to finance the education necessary to unlock the best career opportunities,” said Scott Thompson, CEO of Tuition.io. "As we approach the time when payments will be restarted for federal loans, we're honored to work with Starbucks to support their partners and their families to make the best financial decisions regarding repayment of their student loans and options for financing their future education."

These benefits build on Starbucks continued work to support partners’ holistic well-being as a company with programs that include 401(k) with Starbucks Match, Bean Stock, comprehensive healthcare coverage, full tuition coverage for a Bachelor’s Degree through the Starbucks College Achievement Plan, Lyra mental health benefit <a href="https://stories.starbucks.com/press/2017/starbucks-commitment-to-partners/">and more</a>.

“We believe that when we invest in you and your greater aspirations we are investing in the success of Starbucks too,” said Sara Kelly, Starbucks chief partner officer. “This is just one more way we are co-creating a meaningful partner experience and a better future for Starbucks.”

This announcement builds on partner financial stability investments from Starbucks earlier this year when the company committed to <a href="https://stories.starbucks.com/press/2022/starbucks-commits-one-billion-in-fy2022-investments-to-uplift-partners-employees-and-the-store-experience/">increase partner pay</a>, effective August 1.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or <a href="http://www.starbucks.com/" target="_blank" rel="noreferrer noopener">www.starbucks.com</a>.

Forward-Looking Statements

Certain statements contained herein are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to trends in or expectations relating to the effects of our existing and any future initiatives, strategies, investments and plans, including our reinvention plan, as well as trends in or expectations regarding our financial results and long-term growth model and drivers; our operations in the U.S. and China; our environmental, social and governance efforts; our partners; economic and consumer trends, including the impact of inflationary pressures; impact of foreign currency translation; strategic pricing actions; the conversion of certain market operations to fully licensed models; our plans for streamlining our operations, including store openings, closures and changes in store formats and models; expanding our licensing to Nestlé of our consumer packaged goods and Foodservice businesses and its effects on our Channel Development segment results; tax rates; business opportunities and expansion; strategic acquisitions; our dividends programs; commodity costs and our mitigation strategies; our liquidity, cash flow from operations, investments, borrowing capacity and use of proceeds; continuing compliance with our covenants under our credit facilities and commercial paper program; repatriation of cash to the U.S.; the likelihood of the issuance of additional debt and the applicable interest rate; the continuing impact of the COVID-19 pandemic on our financial results and future availability of governmental subsidies for COVID-19 or other public health events; our ceo transition; our share repurchase program; our use of cash and cash requirements; the expected effects of new accounting pronouncements and the estimated impact of changes in U.S. tax law, including on tax rates, investments funded by these changes and potential outcomes; and effects of legal proceedings. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: the continuing impact of COVID-19 on our business; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, including restrictions on business operations or social distancing requirements, and the duration and efficacy of such restrictions; the resurgence of COVID-19 infections and the circulation of novel variants of COVID-19; fluctuations in U.S. and international economies and currencies; our ability to preserve, grow and leverage our brands; the ability of our business partners and third-party providers to fulfill their responsibilities and commitments; potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, 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; new initiatives and plans or revisions to existing initiatives or plans; our ability to obtain financing on acceptable terms; the acceptance of the Company’s products by our customers, evolving consumer preferences and tastes and changes in consumer spending behavior; partner investments, changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts; failure to attract or retain key executive or employee talent or successfully transition executives; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business including any potential negative effects stemming from the Russian invasion of Ukraine; the prices and availability of coffee, dairy and other raw materials; the effect of legal proceedings; and the effects of changes in tax laws and related guidance and regulations that may be implemented and other risks detailed in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Three smiling women baristas with arms around each other

Effective September 19, 2022, eligible U.S. partners will have access to new benefits to further financial stability and manage student loan repayments.

Starbucks Announces Student Loan Management and Savings Programs to Support Partner (Employee) Financial Well-Being

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New Starbucks Odyssey experience will offer members the ability to earn and buy digital collectible stamps (NFTs) that will unlock access to new, immersive coffee experiences

As one of the first companies to integrate NFTs with an industry-leading loyalty program at scale, Starbucks will create an accessible Web3 community that will enable new ways to engage with members and partners (employees)

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Starbucks today unveiled Starbucks Odyssey, a new experience powered by Web3 technology that will offer Starbucks Rewards members and Starbucks partners (employees) in the United States the opportunity to earn and purchase digital collectible assets that will unlock access to new benefits and immersive coffee experiences. Starbucks is one of the first companies to integrate non-fungible tokens (NFTs) with an industry-leading loyalty program at scale, while creating a digital community that will enable new ways for Starbucks to engage with its members and its partners. Starting Sept. 12, customers and partners can join the <a href="http://waitlist.starbucks.com" target="_blank" rel="noreferrer noopener">waitlist</a> for a chance to be among the first to receive access to the Starbucks Odyssey experience, which will launch later this year.&nbsp;

“Starbucks has always served as the Third Place, a place between home and work where you feel the warmth of connection over coffee, community and belonging. The Starbucks Odyssey experience will extend the Third Place connection to the digital world,” said Brady Brewer, Starbucks executive vice president and chief marketing officer. “For the first time we are connecting our Starbucks Rewards loyalty program members not just to Starbucks, but to each other.”

“Leveraging Web3 technology will allow our members to access experiences and ownership that was not possible before. Starbucks Odyssey will transcend the foundational benefits that our Starbucks Rewards members have come to love, and unlock digital, physical and experiential benefits that are uniquely Starbucks,” continued Brewer. “By integrating into the Starbucks Rewards ecosystem and grounding the experience in coffee, connection and community, we are entering the Web3 space differently than any other brand, while deepening our members’ connection to Starbucks. Our vision is to create a place where our digital community can come together over coffee, engage in immersive experiences, and celebrate the heritage and future of Starbucks.”

Overview of Starbucks Odyssey

Starbucks Odyssey will be an extension of the industry-leading Starbucks Rewards program that members can access using their Starbucks Rewards login credentials. Once logged in, members can engage in Starbucks Odyssey ‘journeys,’ a series of activities, such as playing interactive games or taking on fun challenges to deepen their knowledge of coffee and Starbucks. Members will be rewarded for completing journeys with a digital collectable ‘journey stamp’ (NFT).

Members can also purchase ‘limited-edition stamps’ (NFTs) through a built-in marketplace within the Starbucks Odyssey web app experience. Limited-edition stamps will be available for all members to purchase directly with a credit card.&nbsp; No crypto wallet or cryptocurrency will be required – making the Starbucks Odyssey experience a fun and easy way for members to access this new technology and claim an ownership stake in their loyalty to Starbucks.&nbsp;

Each digital collectable stamp will include a point value based on its rarity, and the stamps can be bought or sold among members within the marketplace, with ownership secured on a blockchain. As stamps are collected, members’ points will increase, unlocking access to unique benefits and experiences that have never been offered before. These experiences could range from a virtual espresso martini-making class, to access to unique merchandise and artist collaborations, to invitations to exclusive events at Starbucks Reserve Roasteries or even trips to Starbucks Hacienda Alsacia coffee farm in Costa Rica.

All stamps will feature iconic Starbucks artwork co-created with Starbucks partners as well as outside artists – giving members and partners access to these treasured assets for the first time.&nbsp; Additionally, a portion of the proceeds from the sale of limited-edition stamps will be donated to support causes that matter to Starbucks partners and Starbucks Rewards members.

Customers can sign up for the waitlist at <a href="https://waitlist.starbucks.com/" target="_blank" rel="noreferrer noopener">https://waitlist.starbucks.com/</a> starting today. Invitations will be sent to select waitlist members later this year, who will be among the first to explore the experience.&nbsp; As Starbucks Odyssey evolves, the company will continue to gather feedback from members and Starbucks partners, which will help shape the future of this innovative, new experience for Starbucks Rewards.&nbsp;

Aligning to Sustainability Commitments

Building Starbucks Odyssey using technology that aligns with Starbucks sustainability aspirations and commitments is a top priority. Starbucks is committed to reducing its carbon, water and waste footprints and is taking a thoughtful and thorough approach as the company works towards the launch later this year. Starbucks will utilize a “proof-of-stake” blockchain technology built by Polygon, which uses less energy than first generation “proof-of-work” blockchains.&nbsp;&nbsp;

Reinventing the Third Place

Starbucks has a history of taking leading-edge technology, innovating, and making it accessible and approachable for mainstream audiences. The company’s success with its industry-leading Starbucks Rewards loyalty program, mobile payment and ordering, and Wi-Fi access in its stores has taught the company how to engage customers at scale to unlock opportunities using emerging technology.&nbsp; Through this approach, the company will provide easier access to Web3 experiences and, in the process, introduce a new, next-generation loyalty program model to the world.

“This is just the beginning; Starbucks Odyssey is one of the ways we are reinventing the Third Place to meet our customers wherever they are – in a Starbucks store, on-the-go, or online. We are creating an accessible, digital Third Place community enabled by Web3 technology where Starbucks Rewards members and our partners can connect through unique experiences and come together around the love for coffee,” said Brewer.

Forward-Looking Statements &nbsp;

Certain statements contained herein are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to trends in or expectations relating to the effects of our existing and any future initiatives, strategies, investments and plans, including our reinvention plan, as well as trends in or expectations regarding our financial results and long-term growth model and drivers; our operations in the U.S. and China; our environmental, social and governance efforts; our partners; economic and consumer trends, including the impact of inflationary pressures; impact of foreign currency translation; strategic pricing actions; the conversion of certain market operations to fully licensed models; our plans for streamlining our operations, including store openings, closures and changes in store formats and models; expanding our licensing to Nestlé of our consumer packaged goods and Foodservice businesses and its effects on our Channel Development segment results; tax rates; business opportunities and expansion; strategic acquisitions; our dividends programs; commodity costs and our mitigation strategies; our liquidity, cash flow from operations, investments, borrowing capacity and use of proceeds; continuing compliance with our covenants under our credit facilities and commercial paper program; repatriation of cash to the U.S.; the likelihood of the issuance of additional debt and the applicable interest rate; the continuing impact of the COVID-19 pandemic on our financial results and future availability of governmental subsidies for COVID-19 or other public health events; our ceo transition; our share repurchase program; our use of cash and cash requirements; the expected effects of new accounting pronouncements and the estimated impact of changes in U.S. tax law, including on tax rates, investments funded by these changes and potential outcomes; and effects of legal proceedings. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: the continuing impact of COVID-19 on our business; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, including restrictions on business operations or social distancing requirements, and the duration and efficacy of such restrictions; the resurgence of COVID-19 infections and the circulation of novel variants of COVID-19; fluctuations in U.S. and international economies and currencies; our ability to preserve, grow and leverage our brands; the ability of our business partners and third-party providers to fulfill their responsibilities and commitments; potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, 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; new initiatives and plans or revisions to existing initiatives or plans; our ability to obtain financing on acceptable terms; the acceptance of the Company’s products by our customers, evolving consumer preferences and tastes and changes in consumer spending behavior; partner investments, changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts; failure to attract or retain key executive or employee talent or successfully transition executives; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business including any potential negative effects stemming from the Russian invasion of Ukraine; the prices and availability of coffee, dairy and other raw materials; the effect of legal proceedings; and the effects of changes in tax laws and related guidance and regulations that may be implemented and other risks detailed in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings.&nbsp;

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.&nbsp;

New Starbucks Odyssey experience will offer members the ability to earn and buy digital collectible stamps (NFTs) that will unlock access to new, immersive coffee experiences.

Starbucks brewing revolutionary Web3 experience for its Starbucks Rewards members

Starbucks Brewing Revolutionary Web3 Experience for its Starbucks Rewards Members

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Howard Schultz will continue as interim ceo until April 1, 2023 and serve as an advisor to Narasimhan through calendar 2023 while remaining on Starbucks Board of Directors.

SEATTLE (September 1, 2022) – Starbucks (NASDAQ: SBUX) today announced that Laxman Narasimhan will become the company’s next chief executive officer and a member of the Starbucks Board of Directors. Narasimhan will join Starbucks as incoming ceo on October 1, 2022 after relocating from London to the Seattle area and will work closely with Howard Schultz, interim ceo, before assuming the ceo role and joining the Board on April 1, 2023.

Narasimhan brings nearly 30 years of experience leading and advising global consumer-facing brands. Known for his considerable operational expertise, he has a proven track record in developing purpose-led brands. Building on companies’ histories, he has succeeded in rallying talent to deliver on future ambitions by driving consumer-centric and digital innovations. Most recently, he served as chief executive officer of Reckitt, a FTSE-12 listed multinational consumer health, hygiene and nutrition company, where he led the company through a major strategic transformation and a return to sustainable growth.

“Laxman is an inspiring leader. His deep, hands-on experience driving strategic transformations at global consumer-facing businesses makes him the ideal choice to accelerate Starbucks growth and capture the opportunities ahead of us. His understanding of our culture and values, coupled with his expertise as a brand builder, innovation champion, and operational leader will be true differentiators as we position Starbucks for the next 50 years, generating value for all our stakeholders. On behalf of the entire Board, I am thrilled to welcome Laxman as Starbucks next ceo,” said Mellody Hobson, Independent Starbucks Board of Directors chair.

During the transition period, Narasimhan will be fully immersed in the company, spending time with Schultz and the management team, partners and customers and gaining in-depth exposure to the brand, company culture, and Reinvention plan. This will initially include Starbucks store immersions, visiting manufacturing plants and coffee farms, connecting with partners around the globe as well as Starbucks long term business partners.

Schultz will remain in the role of interim ceo during this transition period, following which he will continue as a member of the Starbucks Board of Directors. He will remain closely involved with the company’s Reinvention and act as an ongoing advisor to Narasimhan.

“When I learned about Laxman’s desire to relocate, it became apparent that he is the right leader to take Starbucks into its next chapter. He is uniquely positioned to shape this work and lead the company forward with his partner-centered approach and demonstrated track record of building capabilities and driving growth in both mature and emerging markets. As I have had the opportunity to get to know him, it has become clear that he shares our passion of investing in humanity and in our commitment to our partners, customers, and communities. The perspectives he brings will be a strong asset as we build on our heritage in this new era of greater well-being. I greatly look forward to our partnership over the coming months and years,” said Schultz.

“Starbucks commitment to uplift humanity through connection and compassion has long distinguished the company, building an unrivaled, globally admired brand that has transformed the way we connect over coffee. I am humbled to be joining this iconic company at such a pivotal time, as the Reinvention and investments in the partner and customer experiences position us to meet the changing demands we face today and set us up for an even stronger future,” said Narasimhan. “I look forward to working closely with Howard, the Board, and the entire leadership team – and to listening and learning from Starbucks partners – as we collectively build on this work to lead the company into its next chapter of growth and impact.”

Previously, Narasimhan held various leadership roles at PepsiCo, including as global chief commercial officer, where he was responsible for the company’s long-term strategy and digital capabilities. He also served as ceo of the company’s Latin America, Europe and Sub-Saharan Africa operations, and previously as the ceo of PepsiCo Latin America, and the cfo of PepsiCo Americas Foods. Prior to PepsiCo, Narasimhan was a senior partner at McKinsey &amp; Company, where he focused on its consumer, retail and technology practices in the U.S., Asia and India and led the firm’s thinking on the future of retail.

Narasimhan is also a trustee of the Brookings Institution, a member of the Council on Foreign Relations, served as a member of the UK Prime Minister's Build Back Better Council, and is a member of Verizon’s Board of Directors. He holds a degree in Mechanical Engineering from the College of Engineering, University of Pune, India. He has an MA in German and International Studies from The Lauder Institute at The University of Pennsylvania and an MBA in Finance from The Wharton School of The University of Pennsylvania.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or <a href="http://www.starbucks.com">www.starbucks.com</a>.

A collage of images on the left, Starbucks store Pike Place Market, in the center Starbucks new ceo Laxman, on the right a coffee cup and two female partners smiling wearing

Howard Schultz will continue as interim ceo until April 1, 2023 and serve as an advisor to Narasimhan through calendar 2023 while remaining on Starbucks Board of Directors.

Starbucks Names Laxman Narasimhan as Next Chief Executive Officer

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Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal third quarter ended July 3, 2022.

For the full press release, please visit our Investor Relations site <a href="https://s22.q4cdn.com/869488222/files/doc_financials/2022/q3/Q3-FY22-Earnings-Release-Final-to-Q4.pdf">here</a>.

“We have clear line-of-sight on what we need to do to reinvent the company, elevate our partner and customer experiences and drive accelerated, profitable growth all around the world,” said Howard Schultz, interim chief executive officer. “The Q3 results we announced today demonstrate the early progress we have made in just four short months,” Schultz added.

“We delivered record-breaking revenue performance during the quarter from continued strength in customer demand globally, balanced with our ability to execute investments despite macroeconomic and operational headwinds. Our commitment to deliver shareholder value has not wavered, and we are making the right decisions and investments today for the future of Starbucks,” commented Rachel Ruggeri, chief financial officer.

Woman barista wearing glasses smiles and writes on a cup

“The Q3 results we announced today demonstrate the early progress we have made in just four short months,” said ceo Howard Schultz.

Starbucks Reports Q3 Fiscal 2022 Results

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Indoor dining services resume across 800 Starbucks stores in the city as COVID restrictions ease

SHANGHAI – The dine-in experience resumed at most Starbucks locations across Shanghai today, the first day indoor dining partially eased across the city. The return of Starbucks third place experience at 800 Starbucks stores in Shanghai marked another milestone in the company’s COVID journey, and the gradual return to normalcy in one of the most vibrant and dynamic cities in the world. To celebrate the milestone and welcome customers back, coffee tastings – Starbucks signature coffee ritual – were held in all 800 stores.

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“Customers’ craving for Starbucks and longing for human reconnection have never been felt more keenly as we emerge from the most severe COVID resurgences in China,” said Starbucks China chief executive officer Leo Tsoi. “Our 10,000 partners are excited to welcome customers back to the Starbucks third place, as we resume dining-in services in 800 stores in the short space of 48 hours. It’s Starbucks modest contribution to help Shanghai customers return to their pre-outbreak routines and lifestyles, and get the city back to its renowned buzz and vibrancy.”

Among the stores to resume indoor dining is the Starbucks Reserve Roastery Shanghai, which will also reopen its second floor Bar Mixato and Teavanna Bar for the first time since the city’s lockdown, enriching the third place experience to serve different customer occasions throughout the day.

Since the two-month citywide lockdown was lifted in early June, Starbucks has reopened nearly 900 stores in Shanghai, home to the most Starbucks stores in the world. However, dining-in services had remained suspended in most stores.

With the easing of dining-in restrictions, stores will be allowed to serve customers at 50 to 70 percent of seating capacity, depending on store size, in accordance with latest public health regulations. Operational requirements such as social distancing will also be rigorously implemented to protect the safety of Starbucks partners and customers.

To celebrate the milestone and welcome customers back, coffee tastings – Starbucks signature coffee ritual – were held in all 800 stores.

Starbucks welcomes customers back for indoor dining in Shanghai

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SEATTLE – Today, Starbucks (NASDAQ: SBUX) announced the creation of the Heritage Market, connecting three of the company’s most iconic and most visited stores and the partners (employees) who lead them, located at 1912 Pike Place (Starbucks original store), 1st &amp; Pike and also 1st &amp; University.

 Together, these three distinct locations in Starbucks hometown of Seattle represent the company’s historic past, present, and its re-imagined future. The three stores will offer an elevated experience, steeped in the rich history of coffee, culture and connection that is synonymous with Starbucks.&nbsp;&nbsp;

Customers who visit these stores will enjoy the Starbucks Experience and also have the opportunity to engage directly with partners through unique coffee craft experiences, cultural immersions and educational opportunities.&nbsp;&nbsp;&nbsp;

Partners at these stores will be uniquely trained in the company’s heritage and hometown to offer regular tours and immersions for customers, and they will serve as ambassadors for the Mission and Values that are the foundation of Starbucks. All partners in these locations will also be able to complete and become fully <a href="https://stories.starbucks.com/stories/2022/the-coveted-starbucks-coffee-master-black-aprons-return/" target="_blank" rel="noreferrer noopener">certified Coffee Masters</a> as a part of their training and support. Starbucks highly coveted Coffee Master was recently reintroduced to recognize partners and celebrate their coffee passion as a symbol of Starbucks ongoing commitment to ensuring a sustainable future of high-quality coffee.&nbsp;

“The Heritage Market truly embodies our commitment to reconnect and reimagine our future at Starbucks. This innovative project is a direct result of feedback from our partners who want a closer connection to our heritage along with an enhanced focus on coffee, craft and the local community. We believe the Heritage Market represents a new opportunity to dream, experiment, and co-create the next 50+ years of our future together,” said Cora Carter, district manager for the Seattle market and a 13-year partner who mostly served as the store manager of the 1912 Pike Place store and began her Starbucks career as a barista.

 The original Starbucks store is located at 1912 Pike Place, in the heart of Seattle’s famed Pike Place Market. Hundreds of thousands of customers each year travel to experience a piece of its history and culture, a heritage that has been preserved by our partners perfecting the craft in one of the coffee world’s most recognizable settings. The heart of the store, its iconic history and the partners’ ability to make each customer feel special, draws a daily line of visitors from around the world who want to make the experience part of their own story, whether they are just seeking a cup of great coffee or a life-changing experience, including some who have selected a visit as their “wish” from the Make-A-Wish Foundation.&nbsp;&nbsp;

The store is so beloved by Starbucks partners that two full-scale replicas, exact down to a creaky wooden floorboard near the bar, were built for the Starbucks Leadership Experience in Chicago in 2019 so 12,000 store managers and leaders could experience it. Howard Schultz, Starbucks chief executive officer, also starts many of his days with a visit to the Pike Place store.&nbsp;&nbsp;

Less than a block away, the 1st &amp; Pike Starbucks store opened at the entrance to Seattle’s iconic Pike Place Market in 2009. In the weeks ahead, this store will undergo slight renovations with planned upgrades and enhancements for a heritage-inspired design that harkens back to the mercantile spirit of Starbucks hometown roots while elevating both the partner and customer experience at this unique location.

Just last year, Starbucks opened its newest store concept, called <a href="https://www.starbucks.com/ways-to-order/pickup/" target="_blank" rel="noreferrer noopener">Starbucks Pickup</a>, at the corner of 1st &amp; University. This location is designed for customers who order ahead and pay in the Starbucks app. The store is designed for customers on-the-go with the convenience of mobile ordering while also providing partners with a reimagined workspace to connect directly with customer. It’s focused on a convenient transaction model and a grab and go environment to meet the needs of our on-the-go customers while also offering partners a reimagined workspace to connect directly with customers.

 This newly created Heritage Market offers new ways for partners to grow their career at Starbucks. It was through the direct feedback from partners that the concept was born. At these stores, partners not only encompass the timeless role of the barista, but they also hold a high responsibility of brand stewardship, coffee leadership and excellence in customer engagement. &nbsp;

Since the new Heritage Market was first announced to partners during the week of May 23, 2022, all current partners became eligible to apply to work in these locations, and those who have been selected will learn of their new role in these stores later this week. All current partners continue to have employment opportunity with Starbucks.&nbsp;

Partners have been selected through a competitive process to represent Starbucks in these three stores – offering an elevated pay structure for this more expansive role – and will work in all three locations that comprise the Heritage Market. Over the coming weeks, the stores at 1st &amp; Pike and 1st &amp; University will be temporarily closed while partners are hired and trained, and the necessary store enhancements are made to improve the customer experience.

Through listening and learning together as partners, Starbucks continues to believe it has a role and responsibility in creating a safe and welcoming third place, offering connection, community and care in a world that needs us to come together and support one another like never before. In Seattle and across the U.S., Starbucks continues to work with those who are focused on supporting safe and equitable communities. 

The company’s Outreach Worker pilot program, which is currently active in eight cities across the country including in Seattle in partnership with Catholic Community Services, aims to support store partners in high-incident stores by connecting them to outreach workers who bring expertise in hyper-local social work and can support customers with critical needs, while decreasing non-critical reliance on law enforcement. The pilot program is offered in each of the Heritage Market locations, as well as more broadly in the district, with the intent to help ensure Starbucks stores remain a welcoming “Third Place” for all partners and customers. Further, Starbucks recently announced <a href="https://stories.starbucks.com/press/2022/starbucks-expands-efforts-to-support-seattles-chronic-homelessness-crisis/" target="_blank" rel="noreferrer noopener">nearly a half a million dollars of investments</a> throughout 2022 to help strengthen the company’s hometown and advance solutions to support those experiencing challenges like chronic homelessness in the greater Seattle region.

The Heritage Market comes on the heels of Schultz’s return as ceo of Starbucks, and a journey to reinvent the future of the company through co-creation with Starbucks partners. Starbucks <a href="https://stories.starbucks.com/stories/2022/highlights-from-starbucks-1-billion-partner-store-investments-and-the-story-behind-them/" target="_blank" rel="noreferrer noopener">recently announced</a> $1 billion in additional partner and store investments this year, with a focus on modernizing training and collaboration, store innovation, and the celebration of coffee. As part of that commitment, the company has launched <a href="https://www.youtube.com/watch?v=EM1wOKU2q6Y" target="_blank" rel="noreferrer noopener">a series of collaboration sessions</a> directly with partners, aimed to re-imagine the future of the company, together. The Heritage Market is a continuation and a celebration of that commitment.&nbsp;

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or <a href="http://www.starbucks.com/" target="_blank" rel="noreferrer noopener">www.starbucks.com</a>&nbsp;

The Heritage Market is a direct result of partner (employee) feedback asking for a closer connection to Starbucks heritage and an enhanced focus on coffee, craft, community and culture.

Starbucks Unveils Heritage Market, With Three Seattle Hometown Stores

Starbucks Unveils Heritage Market, With Three Seattle Hometown Stores Dedicated to Honoring Past, Present and Future of Coffee and Community 

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Board reiterates plans of driving toward naming new leader in fall

Howard Schultz remaining as interim CEO through calendar Q1 2023 to ensure smooth transition

SEATTLE – Starbucks Corporation (NASDAQ: SBUX) Board of Directors today provided an update to affirm the search details for the Company’s next chief executive officer. As stated on the Company’s quarterly <a href="https://s22.q4cdn.com/869488222/files/doc_financials/2022/q2/SBUX-Corrected-Transcript-5.4.2022.pdf">Earnings call</a> last month, the Board’s ceo search continues to be on track to identify a successor ceo in the coming months, and the Board has agreed with Schultz that he will remain as interim ceo through the first fiscal quarter of 2023. This timeline provides the company the ideal runway for a seamless transition and continuity of leadership through the 2022 holiday season, as the business transformation continues.

Since returning as interim ceo on April 4, Schultz has engaged deeply with partners (employees) of all levels of the company, working directly with the leadership team to shape a strategic plan for the future of a reimagined Starbucks Coffee Company. The reinvention plan is being designed through co-creation across the organization with a focus on exceeding the expectations of both partners and customers.

As the next chief executive is named to the position, he or she will undergo full immersion into the Company, collaborating with Schultz directly. Driving toward an announcement this fall, the official handoff will take place in the first calendar quarter of 2023. Thereafter, Schultz will remain on the Starbucks Board.

Forward-Looking Statements Certain statements contained herein are “forward-looking” statements within the meaning of the applicable securities laws and regulations. &nbsp;Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to trends in or expectations relating to the effects of our existing and any future initiatives, strategies, investments and plans, as well as trends in or expectations regarding our financial results and long-term growth model and drivers; our operations in the U.S. and China; our environmental, social and governance efforts; our partners; economic and consumer trends, including the impact of inflationary pressures; the conversion of several market operations to fully licensed models; our plans for streamlining our operations, including store openings, closures and changes in store formats and models; expanding our licensing to Nestlé of our consumer packaged goods and Foodservice businesses

The Board’s ceo search continues to be on track to identify a successor ceo in the coming months, and the Board has agreed with Schultz that he will remain as interim ceo through the first fiscal quarter of 2023. 

Starbucks Board of Directors Affirms CEO Transition Details

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Bolthouse Farms, portfolio company of Butterfly, aligns powerhouse juice brands to propel Evolution Fresh forward; Starbucks to focus efforts on the growth of its core business

Starbucks (NASDAQ: SBUX) and Bolthouse Farms today announced entry into a definitive agreement for Bolthouse Farms to acquire the brand and business of Evolution Fresh. The partners (employees) that support the business will also transition to Bolthouse Farms upon close of the transaction.

Evolution Fresh is a leading producer of primarily organic, cold-pressed, premium juice products. By joining forces with Bolthouse Farms – the No. 1 super premium refrigerated beverage brand and largest carrot supplier to North American retailers* – Evolution Fresh will have the opportunity to accelerate its growth trajectory while Starbucks focuses its efforts on the growth of the core Starbucks business and its partner and customer experience.

“Evolution Fresh has grown steadily over the last several years as a result of our partners’ hard work and commitment to the brand. We feel there is a great runway and opportunity to take Evolution Fresh to the next level, and Bolthouse Farms’ considerable experience and success in the premium beverage category will allow the brand to continue growing,” said Hans Melotte, Starbucks executive vice president Global Channel Development. “Bolthouse Farms shares the same values and commitment to putting people first in everything they do, which affirms for us that we have found the right opportunity for Evolution Fresh.”

Through this acquisition, Bolthouse Farms will expand its beverage offerings from nutrient-dense, plant-powered juices and smoothies to include a full lineup of primarily organic cold-pressed, premium juices. Starbucks stores in the U.S. will continue to sell Evolution Fresh products.&nbsp;

“Evolution Fresh is a natural extension of the Bolthouse Farms portfolio and we look forward to welcoming the team,” said Jeff Dunn, chairman and chief executive officer of Bolthouse Farms. “At Bolthouse Farms, with the support of Butterfly, we strive to ensure that the acres we grow and beverages we make have a positive impact on the land, on the people who make up our company, and on all people. By bringing Evolution Fresh into our portfolio, we will extend our spirit of ingenuity and innovation, sharing resources and passion for high-quality, nutrient-dense juices to pioneer solutions for today’s food system.”

Butterfly is a leading private equity firm that specializes in the food sector with a particular focus on high-growth, on-trend categories.&nbsp; Through Bolthouse Farms, Evolution Fresh joins Butterfly’s brand portfolio that includes the likes of Chosen Foods, MaryRuth Organics, Orgain, and Pete and Gerry’s Organics.

“We have long admired the Evolution Fresh brand and see tremendous untapped potential in the premium beverage category. By bringing these powerhouse brands together — Bolthouse Farms and Evolution Fresh — we will deliver a robust, high-growth, and consumer-preferred portfolio of juices to market,” said Bill Levisay, president, Consumer Brands, Bolthouse Farms.

The transaction, which is for an undisclosed amount, is expected to close later this year.

*SOURCE: IRI MULO L52 weeks ending May 1, 2022

About Starbucks Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at <a href="https://stories.starbucks.com/">stories.starbucks.com</a> or <a href="http://www.starbucks.com">starbucks.com</a>.

About Bolthouse Farms For more than a century, <a href="http://www.bolthouse.com/" target="_blank" rel="noreferrer noopener">Bolthouse Farms</a> has been known as the innovation leader in growing and distributing carrots and high-quality, nutrient-dense branded products. Employing more than 2,200 people and headquartered in Bakersfield in California’s fertile San Joaquin Valley, Bolthouse Farms is one of the largest carrot growers and distributors in the U.S. and the No. 1 premium refrigerated beverage brand in U.S. retail. Guided by its purpose — Ingenuity Grows Good —the company also produces and sells super-premium juices, smoothies, café beverages, protein shakes, functional beverages and premium refrigerated dressings, all under the Bolthouse Farms® brand name. Visit <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.bolthouse.com_&amp;d=DwMGaQ&amp;c=gOrgfQB8xVH7F0lP7MQhi8CyVXMBvYqNyP3LuSSb8Lw&amp;r=hyCyJxXPZZOwiIkUKCIcBjchAXA7ksGIxWsWh-bDHOE&amp;m=1ME1HjpOvmR7silavTguiVmktLa_Q8qKt7eelTjdOh4&amp;s=d_a2nCXsjwAbWuyJE64QD1IY-xBEGCfoqoq1ZsDe_0c&amp;e=" target="_blank" rel="noreferrer noopener">Bolthouse Farms</a> or follow us on <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.instagram.com_bolthousefarms_&amp;d=DwMGaQ&amp;c=gOrgfQB8xVH7F0lP7MQhi8CyVXMBvYqNyP3LuSSb8Lw&amp;r=hyCyJxXPZZOwiIkUKCIcBjchAXA7ksGIxWsWh-bDHOE&amp;m=1ME1HjpOvmR7silavTguiVmktLa_Q8qKt7eelTjdOh4&amp;s=-moenpLxV_EunlLyKPSgjjTShunOYap2cn30gLcD7wc&amp;e=" target="_blank" rel="noreferrer noopener">Instagram</a>, <a href="https://www.facebook.com/bolthousefarms/" target="_blank" rel="noreferrer noopener">Facebook</a> and <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__twitter.com_BolthouseFarms&amp;d=DwMGaQ&amp;c=gOrgfQB8xVH7F0lP7MQhi8CyVXMBvYqNyP3LuSSb8Lw&amp;r=hyCyJxXPZZOwiIkUKCIcBjchAXA7ksGIxWsWh-bDHOE&amp;m=1ME1HjpOvmR7silavTguiVmktLa_Q8qKt7eelTjdOh4&amp;s=x9HfQy5k_R-0-M4e7x7o6cXNAyg4DcjPRYUJC1v1Xx4&amp;e=" target="_blank" rel="noreferrer noopener">Twitter</a>.&nbsp;

About Butterfly Butterfly Equity ("Butterfly") is a Los Angeles, California-based private equity firm specializing in the food sector, spanning the entire food value chain from "seed to fork" via four target verticals: agriculture &amp; aquaculture, food &amp; beverage products, food distribution and foodservice. Butterfly aims to generate attractive investment returns through deep industry specialization, a unique approach to sourcing transactions, and leveraging an operations-focused and technology-driven approach to value creation. For additional information about Butterfly, please visit its website at <a href="http://www.bfly.com" target="_blank" rel="noreferrer noopener">www.bfly.com</a>.

Starbucks and Bolthouse Farms today announced an agreement for Bolthouse Farms to acquire the brand and business of Evolution Fresh.

Bolthouse Farms Acquires Evolution Fresh From Starbucks

Bolthouse Farms Acquires Evolution Fresh from Starbucks

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https://stories.starbucks.com/press/2022/bolthouse-farms-acquires-evolution-fresh-from-starbucks/

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Next round of investments will lead to enhancements in partner pay, modernized training and collaboration, store innovation and a return to the celebration of coffee

With these new investments and record customer demand, Starbucks expected to deliver historic financial performance, returning to healthy long-term growth

SEATTLE – Starbucks Corporation (NASDAQ: SBUX) – Today, on Starbucks FY2022 Q2 Earnings call, ceo Howard Schultz announced the company will make additional investments in partners and stores for prioritized areas such as increased pay, modernized training and collaboration, store innovation, and the celebration of coffee, bringing the total investments to nearly $1 billion in this fiscal year alone. This decision enables Starbucks to meet record customer demand and partner needs in an operating environment deeply impacted by COVID.&nbsp;

On the call with investors, Schultz shared, “What you will see is the transformation of the Starbucks customer and partner experiences. The transformation will accelerate already record demand in our stores. But the investments will enable us to handle the increased demand – and deliver increased profitability - while also delivering an elevated experience to our customers and reducing strain on our partners. And we will reintroduce joy and connection back into the partner experience.”

Since his return as ceo on April 4, Schultz and other Starbucks executives have been visiting retail and roasting plant partners around the country to hear firsthand how their work and lives have been impacted over the last two years. In immersive collaboration sessions, many partners spoke bluntly of the challenges on and off the job, and the unprecedented operational and physical impacts from COVID on the partner and store experience. They offered suggestions for improvements and innovations based on their direct experience, gave feedback on investments under consideration, and voiced hope for what the Green Apron can stand for in the future.

A truly different kind of company, for partners, by partners&nbsp;