core/list

SEATTLE – Starbucks Corporation (NASDAQ: SBUX) today hosted its 30th Annual Meeting of Shareholders virtually. Mellody Hobson, Independent Starbucks Board of Directors chair, joined Kevin Johnson, president and chief executive officer, for opening remarks following today’s news that Johnson made the personal decision to retire from the company after 13 years of service. Johnson, who served on the Starbucks Board since 2009, joined the Starbucks leadership team in 2015 as president and chief operating officer. In 2017, Johnson was named president and chief executive officer. To ensure seamless stewardship of the company until a permanent successor is named, the Board has appointed Howard Schultz as interim chief executive officer, effective April 4, 2022. Schultz will also rejoin the company’s Board of Directors.

core/paragraph

“On behalf of the entire Board, I want to express our sincerest thanks to Kevin for his leadership of Starbucks,” said Hobson. “Kevin and the entire executive team stepped up to the challenge of the pandemic and navigated one of the most difficult periods in modern history. The economic certainty provided to partners during the early months of the COVID shut down, as well as during mandatory quarantines, underscores our core values and will be an enduring legacy for the company. During Kevin’s tenure, Starbucks scaled an industry leading digital offering spanning nearly 45 million Starbucks Rewards members in the U.S. and China.” 

“A year ago, I signaled to the Board that as the global pandemic neared an end, I would be considering retirement from Starbucks. I feel this is a natural bookend to my 13 years with the company. As I make this transition, we are very fortunate to have a founder who is able to step in on an interim basis, giving the Board time to further explore potential candidates and make the right long-term succession decision for the company,” said Kevin Johnson. “I have enjoyed every minute of the job and am proud of what we have achieved together. It has been an honor to serve the 400,000 Starbucks green apron partners around the world and I want to thank them for their service, resilience and optimism.”

Following opening remarks, joined by several members of the leadership team and green apron partners from around the world, Johnson went on to outline Starbucks continued investments and aspirations for people and the planet, and the company’s optimism for a future rooted in humanity, fueled by innovation, and architected by green apron partners.

During the meeting, company leaders extended appreciation to Johnson, celebrated the resilience of green apron partners who have continued to serve communities throughout the COVID-19 pandemic, and recognized all partners as agents in the co-creation of the company’s next chapter.

Listening, Learning and Elevating the Partner Experience

core/heading

Since 1971, partners have been the catalyst of the Starbucks Experience. Rossann Williams, executive vice president, president North America, today reaffirmed Starbucks continued commitment to listen, learn and work together with partners to deliver real, measurable value for partners, customers and shareholders.

“I’m so proud of all we've done these past two years and how our partners inspired the best ideas to lead us through the pandemic,” said Rossann Williams, president of Starbucks North America. “We are just coming out of one of the most complex times of our lives, and I’m proud of how we figured it out together, in service of each other, our customers and our communities.&nbsp;And we are going to use this exact same approach as we build our future, the way only Starbucks can.”

Committing Each Day to a People Positive Company

Virginia Tenpenny, vice president, chief global social impact officer and board member of The Starbucks Foundation, shared during the Annual Meeting that Starbucks is committed to being People Positive – a bold aspiration to enhance the well-being of one billion people who connect with the company by 2030 – rooted in opportunity, inclusion and community.

“Around the world, we continue to listen deeply to our partners to understand their needs and will remain laser-focused on ensuring we are constantly working to enhance every aspect of the green apron experience. This work is never done,” said Tenpenny. “As we enter a new chapter as a global society – and better understand the needs of our partners and communities – there is always an opportunity to do more and a new way to use our scale for good. For us, people positive means impacting all who come into contact with Starbucks with a goal to ignite mutual thriving across all communities.”

Tenpenny shared that Starbucks, in partnership with The Starbucks Foundation, has committed to a series of announcements to support the People Positive aspiration and strengthen communities around the world, including:

In addition, Starbucks introduced <a href="https://stories.starbucks.com/press/2022/starbucks-paves-way-for-more-inclusive-and-accessible-experiences-in-stores-around-the-world/">innovations to its global store portfolio </a>to further strengthen communities and create environments where all feel welcome. This includes committing to open or dedicate 1,000 Starbucks Community Stores across the globe by 2030; and ensuring that physical and digital Starbucks environments meet an elevated standard of accessibility for partners and customers by 2030.

Innovating for a More Sustainable Future

Also during today’s event, Brady Brewer, executive vice president and chief marketing officer, discussed Starbucks aspiration to be a resource positive company – giving back more than it takes from the planet. The company’s planet positive commitment was detailed earlier this week in an <a href="https://stories.starbucks.com/press/2022/starbucks-affirms-commitment-to-a-planet-positive-future-through-innovation-and-learnings-from-store-partners/">announcement</a> highlighting:

With a global test-and-learn approach to meet the company’s 2030 planet positive goals, Starbucks continues to find inspiration from partners who wear the green apron around the world. Both Michelle Burns, executive vice president, Global Coffee, Tea and Cocoa, and Michael Kobori, vice president and chief sustainability officer, joined Brewer to further discuss aspirations and initiatives underway in becoming planet positive.

"Starbucks is spending this year testing innovative ways to reduce waste and reduce our carbon footprint,” said Michael Kobori, vice president and chief sustainability officer. “Some of our best innovations, like the waste and recycling app, come directly from our store partners. Our store partners know their customers and communities best. When we work together with our partners, we find better solutions to create a more sustainable future for our planet and people.”

Reimagining Coffee Craft While Driving Beverage Innovation

Rachel Ruggeri, executive vice president and chief financial officer, previewed the company's continued efforts to innovate coffee craft through store experiences and coffee innovation. 

“At Starbucks, we recognize that one size does not fit all,” said Ruggeri. “Our success has been rooted in how we differentiate ourselves – meeting customers where they need us to be – from the personal connections our partners make with our customers every single day, to our store formats and menu offerings – it’s how we create your Starbucks.”

Building on the company’s continued efforts to raise the bar on coffee, Ruggeri highlighted its beverage innovation, notably in cold espresso and plant-based products, two of the company’s fastest growing categories. Cold beverages accounted for nearly 70 percent of Starbucks total beverage sales last fiscal year – up 20 percentage points over the past three years. Ruggeri also announced the launch of Clover VerticaTM, a new proprietary single cup, on-demand brewer, which will begin rolling out to stores this calendar year. &nbsp;

Delivering Growth at Scale

Ruggeri also discussed the company’s Growth at Scale agenda – noting the importance of being both people and planet positive while growing the business responsibly with focus and discipline. This is what has enabled the company to successfully navigate the pandemic while continuing to differentiate itself. Other key highlights from Ruggeri:

In looking to the future, Hobson notes, “Starbucks has always been a people-focused company guided by our belief that when we invest in our partners, they create the experience that uplifts our customers.&nbsp; That will not change,” said Hobson. “Today, demand for Starbucks is strong and growing. And I strongly believe the relationships built over our coffee make our world better.”

core/separator

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 www.starbucks.com.

Forward-Looking Statements

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 “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 and plans, as well as trends in or expectations regarding our financial results and long-term growth model and drivers, the anticipated timing and effects of recovery of our business, 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 and its effects on our Channel Development segment results, tax rates, business opportunities and expansion, strategic acquisitions, our future relationship with Starbucks Coffee Korea Co., Ltd., expenses, dividends, share repurchases, commodity costs and our mitigation strategies, liquidity, cash flow from operations, use of cash and cash requirements, 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, future availability of governmental subsidies for COVID-19 or other public health events, 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: further spread of COVID-19 and related disruptions to 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 potential for a resurgence of COVID-19 infections and the circulation of novel variants of COVID-19 in a given geographic region after it has hit its “peak”; 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, including the successful expansion of our Global Coffee Alliance with Nestlé; 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; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business; 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 the company 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. The company assumes no obligation to update any of these forward-looking statements.

Long-term non-GAAP EPS growth was not reconciled to the comparable GAAP EPS growth because GAAP EPS is not accessible on a forward-looking basis. The company is unable to reconcile this forward-looking non-GAAP financial measure to the most directly comparable GAAP measure 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 EPS in the future but would not impact the non-GAAP EPS. Such items may include acquisitions, divestitures, restructuring, and other items. The unavailable information could have a significant impact on the company’s GAAP financial results.

Smiling barista wearing ballcap hands bag to customer

The company outlined investments and actions powered by – and for – green apron partners and stores around the world.

Starbucks Showcases Innovation for Growth and a More Connected and Sustainable Future at 2022 Annual Meeting

Stories to inspire and nurture the human spirit

Starbucks Stories

https://stories.starbucks.com/uploads/2019/01/Photo_TBD-320x411_1-1.jpg

Starbucks Corporation

Starbucks Showcases Innovation for Growth and a More Connected and Sustainable Future at 2022 Annual Meeting of Shareholders

https://stories.starbucks.com/uploads/2022/03/SBX20220316-Starbucks-Showcases-Innovation-for-Growth-and-a-More-Connected-and-Sustainable-Future-AMOS-Feature-Image4.jpg

https://stories.starbucks.com/press/2022/starbucks-showcases-innovation-for-growth-and-a-more-connected-and-sustainable-future-at-2022-annual-meeting/

twitter:card

twitter:description

https://stories.starbucks.com/uploads/2022/03/SBX20220316-Starbucks-Showcases-Innovation-for-Growth-and-a-More-Connected-and-Sustainable-Future-AMOS-Feature-Image4-1024x498.jpg

twitter:image

twitter:title

Starbucks president and chief executive officer, Kevin Johnson, retiring after 13 years of service Search for ceo successor underway, led by Starbucks Board of Directors Howard Schultz to return as interim ceo until new leader joins

SEATTLE – Starbucks Corporation announced that Kevin Johnson, president and chief executive officer, intends to retire after a 13-year tenure at the company, including the last five years as ceo. Johnson will transition from his current role on April 4, 2022, and will continue to serve as a Starbucks partner (employee) and special consultant to the company and Board of Directors through September. The Starbucks Board of Directors has been engaged in continuous ceo succession planning, assisted by Russell Reynolds Associates since 2021, and anticipates selecting a new leader by the Fall. To ensure seamless stewardship of the company until a permanent successor is named, the Board has appointed Howard Schultz as interim chief executive officer, effective April 4, 2022. Schultz will also rejoin the company’s Board of Directors.

“On behalf of the entire Board, I want to express our sincerest thanks to Kevin for his leadership of Starbucks. Kevin and the entire executive team stepped up to the challenge of the pandemic and navigated one of the most difficult periods in modern history. The economic certainty provided to partners during the early months of the COVID shut down, as well as during mandatory quarantines, underscores our core values and will be an enduring legacy for the company. During Kevin’s tenure, Starbucks scaled an industry leading digital offering spanning nearly 45 million Starbucks Rewards members in the U.S. and China,” said Mellody Hobson, Independent Starbucks Board of Directors chair.&nbsp;

Johnson, who has served on the Starbucks Board of Directors since 2009, joined the Starbucks leadership team in 2015 as president and chief operating officer. In 2017, Johnson was named president and chief executive officer, succeeding founder Schultz.&nbsp;

Building on the rich heritage of the company, Johnson established the People Positive, Planet Positive and Profit Positive framework that seeks to create a better world for Starbucks partners, farmers, customers and the communities it serves. He expanded the company’s reach through the Global Coffee Alliance with Nestlé, which now operates in nearly 80 markets, and established and executed the Growth at Scale agenda that significantly increased shareholder value.&nbsp;

“A year ago, I signaled to the Board that as the global pandemic neared an end, I would be considering retirement from Starbucks. I feel this is a natural bookend to my 13 years with the company. As I make this transition, we are very fortunate to have a founder who is able to step in on an interim basis, giving the Board time to further explore potential candidates and make the right long-term succession decision for the company,” said Kevin Johnson. “I have enjoyed every minute of the job and am proud of what we have achieved together. It has been an honor to serve the 400,000 Starbucks green apron partners around the world and I want to thank them for their service, resilience and optimism.”&nbsp;

core/embed

Hobson and Johnson will provide an update to shareholders during the 2022 Starbucks Annual Meeting of Shareholders webcast later today. The Board of Directors has formed a working committee to oversee the ceo search process which is ongoing and yielding a strong slate of potential candidates.&nbsp;

As the company’s founder and architect of its culture, the Board of Directors believes Schultz is singularly qualified to serve as interim ceo until a new leader has been identified. In addition to the day-to-day management of the company, Schultz will participate in the search process and help onboard the next ceo.&nbsp;

“For 50 years, Starbucks has been relentlessly focused on exceeding the expectations of our people and our customers, while delivering best-in-class financial performance,” said Hobson. “As the company navigates the aftermath of the pandemic and socio-economic forces impacting the lives of all our stakeholders, Howard will reinforce the company’s culture, underscoring the organization’s commitment to innovating and executing on our core purpose and reason for being: to inspire and nurture the human spirit—one person, one cup and one neighborhood at a time.”&nbsp;

Schultz built Starbucks into one of the world’s most recognized and respected businesses, a company committed to strengthening communities through human connection and innovation. Under his leadership from 1987 to 2018, Starbucks grew from 11 stores with 100 partners to more than 28,000 stores in 77 countries. As ceo, he redefined the role and responsibility of a publicly held company, pioneering programs like comprehensive healthcare, stock ownership and free college tuition for full and part-time employees. During Schultz’s tenure, Starbucks stock price gained 21,000% from the time of its initial public offering in 1992 until he stepped down as executive chairman in 2018.&nbsp;

“When you love something, you have a deep sense of responsibility to help when called. Although I did not plan to return to Starbucks, I know the company must transform once again to meet a new and exciting future where all of our stakeholders mutually flourish,” said Schultz.&nbsp;

As interim ceo, Schultz will focus on setting an innovation framework, while also coaching and onboarding the next permanent ceo of Starbucks. “Our success is not an entitlement. We must continue to earn the trust of our people and our customers every day by how we deliver the Starbucks Experience, how we treat each other and how we act as a responsible community member and corporate citizen. With the backdrop of COVID recovery and global unrest, its critical we set the table for a courageous reimagining and reinvention of the future Starbucks experience for our partners and customers,” commented Schultz.&nbsp;

Schultz is volunteering his time as interim ceo to Starbucks and will receive $1 of compensation.&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 www.starbucks.com.&nbsp;

Forward-Looking Statements&nbsp;

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 “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 and plans, as well as trends in or expectations regarding our financial results and long-term growth model and drivers, the anticipated timing and effects of recovery of our business, 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 and its effects on our Channel Development segment results, tax rates, business opportunities and expansion, strategic acquisitions, our future relationship with Starbucks Coffee Korea Co., Ltd., expenses, dividends, share repurchases, commodity costs and our mitigation strategies, liquidity, cash flow from operations, use of cash and cash requirements, 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, future availability of governmental subsidies for COVID-19 or other public health events, 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: further spread of COVID-19 and related disruptions to 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 potential for a resurgence of COVID-19 infections and the circulation of novel variants of COVID-19 in a given geographic region after it has hit its “peak”; 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, including the successful expansion of our Global Coffee Alliance with Nestlé; 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; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business; 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 the company 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. The company assumes no obligation to update any of these forward-looking statements.&nbsp;

Starbucks ceo, Kevin Johnson with 10 starbucks partners in green aprons

Starbucks president and chief executive officer, Kevin Johnson, is retiring after 13 years of service.

Starbucks Announces Leadership Transition 

https://stories.starbucks.com/uploads/2022/03/SBX20220316-KJRetirementMeta-FeatureHorizontal.jpg

Starbucks Announces Leadership Transition

https://stories.starbucks.com/press/2022/starbucks-announces-leadership-transition/

https://stories.starbucks.com/uploads/2022/03/SBX20220316-KJRetirementMeta-FeatureHorizontal-1024x498.jpg

A year ago, I signaled to the Starbucks Board of Directors that as the pandemic neared an end, I would consider retirement. Well, that day has come.&nbsp;

As I make this transition, we are very fortunate to have our founder, Howard Schultz, who is able to step in on an interim basis, giving the Board time to further explore potential candidates and make the right long-term succession decision for the company.&nbsp;

When I say that Starbucks has been a gift in my life, I am really talking about all of you — all Starbucks partners, past and present, around the world.&nbsp;

Today is my 14th Annual Meeting of Shareholders, first as a member of the Board of Directors, then as coo, and the past five years as ceo.&nbsp;

Today’s Annual Meeting will also be my last as a Starbucks partner.&nbsp;

I want to express my gratitude for all that you do and for all that you have taught me about this wonderful company.&nbsp;

You are the heartbeat of Starbucks and together, we are united around a common Mission – a purpose that goes beyond the pursuit of profit – to inspire and nurture the human spirit, one person, one cup, one neighborhood at a time.&nbsp;

Together, we live a set of values that embody compassion, empathy, and support of each other. As partners we work in service of each other, our customers, and our communities.&nbsp;

And to you, my Starbucks partners, I want to offer a heartfelt thank you.&nbsp;

You welcomed me in your stores around the world. We shared stories together in hundreds of partner roundtables and open forums. You taught me what it means to be a partner. When visiting stores, I often put on the green apron and stepped behind the bar where you would indulge me in a beverage “throw down” challenge. I know you let me win some of those flat white competitions! Please know that I have fond memories of making beverages together, laughing together, and sharing stories with one another. Fond memories of how we overcame challenges and pursued opportunity… together.&nbsp;

You are the heartbeat of Starbucks, Our Starbucks, and it has been an honor working in service of YOU!&nbsp;

As always, I am filled with gratitude and optimism for the future of Starbucks.&nbsp;

Starbucks ceo Kevin Johnson expresses gratitude as he announces retirement after 13 years.

A message of thanks to partners from Kevin: Starbucks has been a gift in my life

https://stories.starbucks.com/press/2022/message-of-thanks-from-kevin/

Starbucks ceo Kevin Johnson expresses gratitude as he announces his retirement.

“You can trust that while we are on this journey together, we will always be one Starbucks, grounded in the belief that partners are the heartbeat of this company,” writes chief executive officer Kevin Johnson in a holiday message.

As I enjoy one of my favorite coffees, Starbucks Christmas Blend, I reach out to you today to reflect and to share some thoughts about the future.

Staying true to our Mission and Values

We’ve navigated a global pandemic by staying true to our Mission and Values and by prioritizing the health and wellbeing of our partners and customers. Together, we implemented new store safety protocols, provided economic certainty to our fellow partners, invested in comprehensive COVID-19 care and benefits and gave free coffee to front line health care workers and first responders. And through it all, the hero in this story is you – our Starbucks partners – who show up in service of people and communities every day. We are all feeling stress and living with the fear of COVID, yet you bring joy to people seeking that special Starbucks Experience. You continue to be a light for each other, for our customers and for the communities we serve. And for that, I am so proud and grateful.&nbsp;

The world has forever changed

As we face the future, it’s clear COVID has changed everything.&nbsp;For example, 5 million Americans have left the workforce during the pandemic, a reality you experience daily. Global supply chain dislocations continue to impact businesses around the world, including Starbucks. Inflation is creating financial pressure on families, and the struggle for racial justice and equity continues. And now, the Omicron variant is creating more challenges in an already uncertain environment. This weighs on humanity, our society and on each of us.

Fortunately, humanity is core to Starbucks, and we take pride in challenging the status quo and leading during times of adversity. And this time will be no different. My commitment to you is that we will continue to navigate into the future together, as one Starbucks.

Together, we will overcome these challenges

We are taking action, quickly, because we know that with more customers coming back to our stores, these macro challenges have created even more pressure for our stores, and all of you. We have heard you, and we are making progress on the toughest obstacles – increasing recruiting staff across the U.S., hiring 5,000 new partners each week, investing an unprecedented $1 billion in wages, training, and hours, deploying new equipment and technology and continuing to support leaders in markets across the country.

There is more to do as we continue to adapt to the long-term realities of COVID. This will involve reimagining our future – continuously listening to improve the partner experience and treating each other with respect and dignity. And although we will never be perfect, together we will create our best path forward.

There is only one Starbucks

That leads me to the situation in Buffalo, where this week partners in three individual stores will decide if they want to be represented by a union.

Unlike others in our industry who operate a franchise model, we have a network of company-operated stores that work together to create a better partner experience. Why does this matter?&nbsp;Many of you have told me you greatly value the flexibility to work between stores, to swap and pickup shifts, giving you the opportunity to connect with partners across different stores as one community. Because of this, we feel strongly that all partners in Buffalo should have a voice in the elections, which may unfortunately not be the case. While we recognize this creates some level of uncertainty, we respect the process that is underway and, independent of any outcome in these elections, we will continue to stay true to our Mission and Values.&nbsp;

Optimistic for the future

As they have through our 50-year history, our Mission and Values will guide us to lead and innovate in ways that are most meaningful to our partners. In fact, the achievements and offerings we are most proud of are because of you: health care benefits, Bean Stock to give you each equity in the company, the Starbucks College Achievement Plan, mental health support through Lyra, our Third Place Policy, our parental and sick leave benefits, evolution of our dress code, some of our most innovative menu offerings and so much more.&nbsp;

So, what can you expect going forward? First, we will work each day to exceed the expectations of our partners as you, in turn, create that great Starbucks Experience for our customers. Second, we will always be transparent and authentic – even when we need to have tough conversations. And finally, you can trust that while we are on this journey together, we will always be one Starbucks, grounded in the belief that partners are the heartbeat of this company.&nbsp;

These principles will guide us, ensuring that our legacy of treating one another as partners is lived out every day, in every market, in every store.

Happy holidays, and I look forward to connecting again soon.&nbsp;

“You can trust that while we are on this journey together, we will always be one Starbucks, grounded in the belief that partners are the heartbeat of this company,” writes ceo Kevin Johnson.

A message from Kevin Johnson: Going forward together as one Starbucks

https://stories.starbucks.com/uploads/2019/01/Logo_earnings-1.jpg

https://stories.starbucks.com/press/2021/a-message-from-kevin-johnson-going-forward-together-as-one-starbucks/

“You can trust that while we are on this journey together, we will always be one Starbucks, grounded in the belief that partners are the heartbeat of this company,” writes chief executive officer Kevin Johnson in a holiday message.

https://stories.starbucks.com/uploads/2019/01/Logo_earnings-1-1024x634.jpg

Q4 Consolidated Net Revenues Up 31% to a Record $8.1 Billion Q4 Comparable Store Sales Up 17% Globally; U.S. Up 22% with 11% Two-Year Growth Q4 GAAP EPS $1.49; Non-GAAP EPS of $1.00 Driven by Strong U.S. Performance Active Starbucks® Rewards Membership in the U.S. Approaches 25 million, Up 28% Year-Over-Year Company Commits to $20 Billion of Share Repurchases and Dividends Over Next Three Years Company Announces Historic Investments in its Partners (Employees), Bringing Average U.S. Retail Hourly Wage to Nearly $17/hr. by Summer 2022

SEATTLE – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 14-week fiscal fourth quarter ended October&nbsp;3, 2021.&nbsp; GAAP results in fiscal 2021 and fiscal 2020 include items that are excluded from non-GAAP results.&nbsp; Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.

“Our strong finish to fiscal 2021, including record performance in the fourth quarter, demonstrates the resilience of Starbucks and reinforces the value of the bold strategic moves we have taken over the past two years. Through it all, we have thoughtfully navigated a strong recovery with an eye towards our future, all guided by our Mission and Values,” said Kevin Johnson, president and ceo.&nbsp;

“Today we announce we will be doubling-down on our investments in our partners, the heartbeat of our company. We know that when we exceed the expectations of our people, they in turn exceed the expectations of our customers - which creates value for all of our stakeholders - our partners, our customers, our communities and our shareholders. We anticipate that our strong business momentum, increased operating efficiency and continued global store expansion will fund these unprecedented investments while delivering yet another year of significant growth,” concluded Johnson.

Fiscal 2021 Re-segmentation

In the fourth quarter of fiscal 2021, certain changes were made to the company's management team, and the operating segment reporting structure was realigned as a result. The company realigned the fully licensed Latin America and Caribbean markets from the Americas operating segment to the International operating segment. The Americas operating segment has been renamed the North America operating segment, comprised of company-operated and licensed stores in the U.S. and Canada. Fiscal 2020 segment information has been restated to conform with current period presentation.

There was no impact to consolidated net revenues, consolidated operating income or net earnings per share as a result of these changes.

PDF: <a href="https://stories.starbucks.com/uploads/2021/10/Starbucks-Q4-FY21-Earnings-Release-1.pdf">Detailed financial data</a>

Q4 Fiscal 2021 Highlights

Full Year Fiscal 2021 Highlights

Visit the&nbsp;<a rel="noreferrer noopener" href="https://investor.starbucks.com/ir-home/default.aspx" target="_blank">Investor Relations page&nbsp;</a>to access&nbsp;the&nbsp;<a href="https://78449.themediaframe.com/dataconf/productusers/sbux/mediaframe/46381/indexl.html" target="_blank" rel="noreferrer noopener">live audio webcast.</a>

(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For additional reconciliations of the extra week in fiscal 2021, please see the Supplemental Financial Data section of our Investor Relations website at http://investor.starbucks.com.

Partner in facial covering wearing a ball cap serves a customer in front of a colorful mural

“Our strong finish to fiscal 2021, including record performance in the fourth quarter, demonstrates the resilience of Starbucks and reinforces the value of the bold strategic moves we have taken over the past two years," said Kevin Johnson.

Starbucks Reports Q4 and Full Year Fiscal 2021 Results

https://stories.starbucks.com/uploads/2021/10/SBX20211028-Q4Earnings-FeatureHorizontal.jpg

https://stories.starbucks.com/press/2021/starbucks-reports-q4-and-full-year-fiscal-2021-results/

https://stories.starbucks.com/uploads/2021/10/SBX20211028-Q4Earnings-FeatureHorizontal-1024x498.jpg

A message from Kevin Johnson, Starbucks ceo to partners (employees)

Fifty years ago, Starbucks opened our doors in Seattle’s Pike Place Market and our journey began. Today we are a proud part of more than 33,000 communities around the world. Since the beginning, we have been a different kind of company, grounded in our Mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

This week, as we celebrate both National and International Coffee Days, we also continue to celebrate our milestone anniversary, honoring the legacy and heritage of Starbucks and all the partners who have come before us. I am filled with optimism for our future: one where we give more than we take from the planet, create a sustainable future for coffee, positively impact the communities we serve, and enhance the lives of all who connect with Starbucks.

The last 18 months have certainly brought unprecedented challenges in our society - with a historic global pandemic, extreme weather events, and racial and social injustice as just a few examples of what we’re navigating together. And as the economy continues to recover and more customers return to our stores, we’re navigating new supply chain challenges, staffing complexities, and other store pressures, much like others across the industry. Our operations and support teams have managed these challenges with flexibility and grace, working with urgency to find solutions. Starbucks partners have remained resilient, always rising to the occasion in support of other partners as we meet our customers where they need us to be. For that, and so much more, I am so grateful for each of you and so very proud to be a partner.

We know our success – past, present, and future – is built on how we partner together. This culture of belonging is both our heritage and our future.<a></a>

Since 1971, we have sought to inspire and nurture the human spirit by asking ourselves, repeatedly and frequently, “what’s possible?” I ask you that same question today. What is possible if we spend the next 50 years using what we’ve learned in our first 50 to make people’s lives better, the planet better, and all of humanity, better?

I invite you to join me in building our next chapter. One where together, we create positive impact on people and the planet, grounded in what Starbucks has learned over the past 50 years: that “possible” is just the beginning.

We know our success – past, present, and future – is built on how we partner together. This culture of belonging is both our heritage and our future.

Celebrating 50 Years of Starbucks Coffee Company

https://stories.starbucks.com/uploads/2020/09/Starbucks_Logo_New_16-FEATURED-IMAGE-1024x683.jpg

https://stories.starbucks.com/press/2021/celebrating-50-years-of-starbucks-coffee-company/

In a message to&nbsp;Starbucks&nbsp;partners (employees),&nbsp;ceo&nbsp;Kevin Johnson&nbsp;encouraged partners to use their voice to make a difference in the communities it serves, reinforcing Starbucks commitment to civic engagement.&nbsp;&nbsp;

I am proud to share that today Starbucks joined the <a href="https://www.businessforvotingrights.com/" target="_blank" rel="noreferrer noopener">Business for Voting Rights Coalition</a> in calling on Congress to update the Voting Rights Act, to help ensure protection of the right to vote for all. This builds on our multi-year non-partisan effort to encourage partners and customers to vote, while ensuring that no partner has to choose between working or voting on (or before) Election Day.&nbsp;

Throughout our history, Starbucks has been committed to ensuring that the voices of our partners are heard. The Voting Rights Act was signed into law in 1965 by President Lyndon B. Johnson and was designed to enforce the voting rights guaranteed by the Fourteenth and Fifteenth Amendments to the Constitution of the United States.&nbsp; We believe civic engagement is critical in building stronger communities and <a href="https://stories.starbucks.com/stories/2020/starbucks-unveils-plan-to-support-partner-and-customer-voter-engagement/">we will continue to provide tools and resources</a> to help you use your voice to make a difference in your communities. Voting is one way this can come to life and protecting the right to vote for every eligible American, regardless of who they vote for, is core to the integrity of our Democracy.&nbsp;

Every election, whether it be for President of the United States or your local mayor or city council member, is important. We will continue to ensure that Starbucks partners have access to expanded tools and resources to participate in the democratic process. You will also hear more from us on the ways you can get involved in your communities, and how Starbucks is supporting you in this work. Based on your feedback, we continue to focus on:

The right to vote is core to our Democracy. The struggle for civil rights and racial equity in America exists in every aspect of our society, and the democratic process is no exception. We believe that voting should be free of discrimination of any kind.

A letter to Starbucks partners from Kevin Johnson, Starbucks president and ceo.

Starbucks ceo: The right to vote is core to our Democracy

https://stories.starbucks.com/uploads/2019/01/Starbucks_Logo_City.jpg

https://stories.starbucks.com/press/2021/starbucks-ceo-the-right-to-vote-is-core-to-our-democracy/

In a message to Starbucks partners, ceo Kevin Johnson encouraged partners to use their voice to make a difference in the communities it serves, reinforcing Starbucks commitment to civic engagement.

https://stories.starbucks.com/uploads/2019/01/Starbucks_Logo_City-1024x647.jpg

Each year since 2001, Starbucks has reported on its efforts to make a positive impact in the communities it serves. Starbucks ceo Kevin Johnson reflects on our 2020 impact and shares the company’s progress for global initiatives in people, planet and coffee.

core/image

Dear Starbucks partners, customers and stakeholders:

As a company grounded in a mission to inspire and nurture the human spirit, Starbucks has always looked to make positive connections and impact on people and communities around the world. So, 20 years ago, we made a commitment to report transparently and regularly about our efforts to improve economic conditions for coffee farmers, minimize our environmental footprint, make positive contributions to the communities we serve, and create a culture of inclusion, belonging and opportunity for all Starbucks partners (employees).&nbsp;

In this FY20 report, you’ll see that even through a historic global pandemic, we remained steadfast in our commitment to people and to the planet. Our goal to make a positive impact on the lives of partners and customers and to give more than we take from the planet is central to the work we do. I’m tremendously proud of all Starbucks partners who prioritized the health and safety of people and showed up for their communities as we navigated COVID-19 together.

core/pullquote

Accordingly, you will see that we have added additional rigor to this work by providing data consistent with the Sustainability Accounting Standards Board (SASB) Environmental, Social and Governance (ESG) reporting standards.&nbsp;

While this report covers the progress we made in FY20, our key areas of focus continue in FY21. Most recently, our partners have seen a substantial wage increase; our renewable energy investments are benefitting our stores and the communities around them; we have set new <a href="https://stories.starbucks.com/stories/2020/starbucks-announces-new-commitments-to-advance-racial-and-social-equity/">inclusion and diversity goals and commitments</a>; we committed to invest $100 million to support small businesses and community development projects in Black, Indigenous and People of Color <a href="https://stories.starbucks.com/press/2021/starbucks-expands-initiatives-to-advance-opportunity-equity-and-inclusion-in-the-communities-it-serves/">(BIPOC) neighborhoods</a>; we added another $50 million to our global coffee farmer fund; and we’re doing more each day.

core/gallery

We have a unique opportunity at Starbucks to use our reach and scale to create a better society in many ways, big and small. I have immense gratitude and pride for all Starbucks partners who have worked together through this historic time in service of their communities, creating a third place where we can all find community, acceptance and a sense of belonging.

Now, meeting the ambitious targets set out in this report will take time … and Starbucks is wholeheartedly committed to these environmental and social goals for the long term. They are core to our mission, they are core to our business and they are core to who we are as Starbucks partners.&nbsp;

core/buttons

Supporting documents and data tables for the 2020 Report, including the Impact Summary Scorecard, Planet Positive Performance and Sustainability Accounting Standards Board Reporting, can be found&nbsp;<a rel="noreferrer noopener" href="https://stories.starbucks.com/uploads/2021/04/2020-Starbucks-GESI-Report-Supporting-Documents.pdf" target="_blank">here</a>.

Starbucks ceo Kevin Johnson reflects on our 2020 impact and shares the company’s progress for global initiatives in people, planet and coffee.

A message from Starbucks ceo Kevin Johnson: Our 2020 impact

https://stories.starbucks.com/uploads/2021/04/SBX20200319-2020_GESI_Report_Main-FeatureHorizontal.jpg

https://stories.starbucks.com/press/2021/a-message-from-starbucks-ceo-kevin-johnson-our-2020-impact/

From one store in Seattle’s Pike Place Market in 1971, to nearly 33,000 stores serving customers globally, Starbucks has always believed that coffee can help build community and power human connections. This third place, where all are welcome, is more important than ever.

By Kevin Johnson, president and ceo:

Starbucks Annual Meeting of Shareholders typically presents a moment of reflection. And this year, perhaps more than any other, that reflection has led me to one place: 1912 Pike.

It was there – 50 years ago – where the vision for a different kind of company began.&nbsp; With just one store.&nbsp;

For Starbucks, I have always believed it is my responsibility to have the wisdom to know what to honor and preserve from past, while at the same time having the courage to boldly re-imagine our future.&nbsp; I believe we must stay true to the foundation of this great company — to our mission, grounded in humanity — and to our culture of warmth and belonging. At the same time, we must look boldly to the future, always evolving the third place for our changing world.&nbsp;

I also believe as all of humanity emerges from this pandemic and as we advance on the journey for social justice and equity, we are on the precipice of another seismic shift as people once again seek human connection. Starbucks was built for connection. We were built for this moment. And for the moments to come.&nbsp;

With more than 400,000 green apron partners around the world, we are grounded in the belief that for-profit companies need to serve a purpose beyond the pursuit of profit. We have shown that a for-profit company can serve and create value for all stakeholders. We are a company that aspires to give back more than we take when it comes to people and the planet while creating prosperity for all who connect with Starbucks.

We are a company that will never underestimate the power of One. One idea. One store. One Mission. With one goal. To be a different kind of company. 

Black-and-white Starbucks Pike Place original store exterior

From one store in Seattle’s Pike Place Market to nearly 33,000 stores globally, Starbucks has always believed that coffee can help build community and power human connections.

Never underestimate the power of one

https://stories.starbucks.com/uploads/2021/03/SBX20200316-AMOS_KJ_Letter-FeatureHorizontal.jpg

https://stories.starbucks.com/stories/2021/never-underestimate-the-power-of-one/

From one store in Seattle’s Pike Place Market in 1971, to nearly 33,000 stores serving customers globally, Starbucks has always believed that coffee can help build community and power human connections.

https://stories.starbucks.com/uploads/2021/03/SBX20200316-AMOS_KJ_Letter-FeatureHorizontal-1024x498.jpg

In a letter to partners, ceo Kevin Johnson announced the appointment of Dennis Brockman as the company’s global chief inclusion and diversity officer. Brockman, who is a 13-year partner, will be responsible for the company’s global I&amp;D strategy, building a culture of I&amp;D leadership excellence and accountability.

As you know, we have been engaged in a daily dialogue over issues of race, inclusion, equity, and opportunity.&nbsp; And on any given day we are reminded of the considerable work we have yet to do as a society—and as a company— in the fight for inclusion and equality. Today, for example, we’re witnessing increasing numbers of racist acts and deplorable, heart-breaking hate against the Asian American Pacific Islander community. This weekend we will remember the anniversary of the assaults on civil rights marchers on the Edmund Pettus Bridge in Selma, Alabama, and reflect upon how far we’ve come and how little has changed in 56 years.

For all of us at Starbucks, each day we must reaffirm our responsibility to one another — to care for each other, to strengthen our communities, and to ensure diverse perspectives are represented at the company’s highest levels. We have committed to do so with intention, with transparency, and with accountability.

Against that backdrop, and in line with our enduring commitment to inclusion and diversity, it is my great pleasure to share with you that Dennis Brockman&nbsp;has accepted the responsibility as Starbucks chief inclusion &amp; diversity officer, along with the well-earned&nbsp;promotion to senior vice president.

So many of you know Dennis and understand why he is the right person for this role and our efforts to meet these historic challenges. He’s been a partner, a leader, and a mentor on the retail side of our business for 13 years, most recently as the Midwest regional vice president. He has an unparalleled understanding of Starbucks culture, a deep connection to our partners, and a vision for advancing inclusion, diversity, and equity throughout our company at all levels.&nbsp; Dennis took on the chief inclusion and diversity officer role on an interim basis in December of last year, and in that time Angela Lis and I have had the great opportunity to get even closer to the I&amp;D team and assess the leadership structure and talent we need to deliver on our <a href="https://stories.starbucks.com/stories/2020/our-commitment-to-inclusion-diversity-and-equity-at-starbucks/">critical commitments and goals</a>.

Dennis will continue to report to me and serve on the U.S. leadership team and will be responsible for continuing our overall global I&amp;D strategy, building a culture of I&amp;D leadership excellence and accountability, developing I&amp;D ambassadors throughout the organization globally, fostering mentorship and other professional development, and amplifying and operationalizing I&amp;D within the U.S. business.

Dennis, this promotion is so well deserved. Know that partners around the world are cheering you on as we continue our journey forward together to be a more inclusive, diverse and equitable company. I look forward to strengthening our partnership.

Congratulations as well to Michael Hines for his well-deserved promotion to vice president, Inclusion &amp; Diversity.&nbsp; Michael joined the I&amp;D team during a critical time this past August and quickly rose to great challenges, bringing over 25 years of progressive, strategic and operational HR experience and deep subject matter expertise in I&amp;D compliance and analytics at a time during which we were making bold commitments for our future at Starbucks. In his new role, Michael will be responsible for leading the new I&amp;D centers of excellence around compliance, analytics, policy, learning and development intended to further strengthen I&amp;D throughout Starbucks.&nbsp;&nbsp;

Please help me in congratulating Dennis and Michael on their promotions and supporting them in the work ahead.&nbsp; We look forward to sharing more with you soon on the progress we are making, the ongoing partner I&amp;D and Partner Network programming, as well as our annual Civil Rights Assessment that will be published later this month.

Reflecting on Rep. John Lewis and other young civil rights advocates walking across that bridge in Alabama, I am reminded of his profound wisdom, <a href="https://www.goodreads.com/book/show/13622279-across-that-bridge">and words</a>: “Take a long, hard look down the road you will have to travel once you have made a commitment to work for change. Know that this transformation will not happen right away. Change often takes time. It rarely happens all at once…”

Let love be our guide. That is our journey.&nbsp; And our only way forward is together.

Starbucks Appoints Dennis Brockman as Global Chief Inclusion and Diversity Officer - Starbucks Stories

Starbucks Appoints Dennis Brockman as Global Chief Inclusion and Diversity Officer

In a letter to partners, ceo Kevin Johnson announced the appointment of Dennis Brockman as the company’s chief inclusion and diversity officer.

https://stories.starbucks.com/uploads/2019/01/SBUX_LOGO_SEC.jpg

https://stories.starbucks.com/press/2021/starbucks-appoints-dennis-brockman-as-global-chief-inclusion-and-diversity-officer/

https://stories.starbucks.com/uploads/2019/01/Starbucks_logo_low_res-1-1024x635.jpg

Q1 Comparable Store Sales of -5% in the U.S. and 5% in China, Demonstrating Sustained Recovery

Kevin Johnson

Starbucks Showcases Innovation for Growth and a More Connected and Sustainable Future at 2022 Annual Meeting of Shareholders

Starbucks Announces Leadership Transition

A message of thanks to partners from Kevin: Starbucks has been a gift in my life

A message from Kevin Johnson: Going forward together as one Starbucks

Starbucks Reports Q4 and Full Year Fiscal 2021 Results

Celebrating 50 Years of Starbucks Coffee Company

Starbucks ceo: The right to vote is core to our Democracy

A message from Starbucks ceo Kevin Johnson: Our 2020 impact

Never underestimate the power of one

Starbucks Appoints Dennis Brockman as Global Chief Inclusion and Diversity Officer

Starbucks Reports Q1 Fiscal 2021 Results

Offering to serve: Starbucks joins effort to help speed COVID-19 vaccination delivery