Starbucks today announced its Q1 FY21 earnings results, reaffirming an optimistic outlook for the long-term and reinforcing that Starbucks is stronger and more resilient than ever.

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“I am very pleased with our start to fiscal 2021, with meaningful, sequential improvements in quarterly financial results despite ongoing business disruption from the pandemic. Investments in our partners, beverage innovation and digital customer relationships continued to fuel our recovery and position Starbucks for long-term, sustainable growth,” said Kevin Johnson, president and ceo.&nbsp;

“Our results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt to changes in consumer behavior and the steadfast commitment of our green apron partners to serve our customers and communities. We remain optimistic about our robust operating outlook for fiscal 2021 as well as our ability to unlock the full potential of Starbucks to create value for our stakeholders,” concluded Johnson.

Full details on Starbucks financial results can be found <a href="https://stories.starbucks.com/press/2021/starbucks-reports-q1-fiscal-2021-results/" data-type="URL" data-id="https://stories.starbucks.com/press/2021/starbucks-reports-q1-fiscal-2021-results/">here</a>.

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1. Starbucks ‘Growth at Scale’ agenda is fueling a global business recovery

This week marks a full year since the company temporarily closed stores across China to protect partners and customers from the Coronavirus, and quickly established <a href="https://stories.starbucks.com/press/2020/navigating-through-covid-19/">guiding principles</a>&nbsp;used to navigate the pandemic globally. One year later, the company reports that its business in China recovered in Q1 in line with expectations, and it remains on track to achieve full sales recovery of its U.S. business by the end of Q2.

In China, Starbucks reported an impressive 5% comparable store sales growth and emphasized the rapid re-acceleration of new store development in the market. In Q1, the company opened almost 160 stores and crossed the 4,800-store milestone, equating to 13% growth in net new stores over the last 12 months.

In the U.S., first-quarter comparable store sales of -5% in the U.S. improved from the prior quarter and the company continues to see average ticket meaningfully higher than pre-pandemic levels. Throughout the quarter, the company laid a solid foundation for achieving FY21 goals by further advancing the three business-driving initiatives fundamental to the company’s “Growth at Scale” agenda: elevating the customer experience, driving relevant beverage innovation, and expanding digital customer engagement.&nbsp;

While this recovery has not been linear, Starbucks is well-positioned to continue to monitor events in real-time and will adapt to the changing conditions in markets around the world.

2. Adapting to changing customer behaviors leads to elevated customer experience As many of our customers have adapted to their work-or-study from-home realities, the company believes Starbucks visits have evolved from “the stop” on the way to a destination to becoming the destination worth leaving home for – and because it is familiar and convenient. &nbsp;

Starbucks has continued to evolve to meet this behavior, prioritizing partner and customer safety, including increasing throughput in drive-thrus, expanded digital reach which maximizes the ability to order ahead, enable curbside pickup and expand delivery capabilities. This work was evident in Q1 with U.S. stores with drive-thrus recording slight improvements in "out-the-window" times, delivering positive comps throughout the quarter and driving over half of net sales in Q1, increasing more than 10% from pre-pandemic levels.

The company is confident its targeted initiatives to unlock capacity and enhance the customer experience at our drive-thru locations are boosting business recovery while strengthening our foundation for future growth.

3. Growth of digital customer relationships drives results – with Starbucks Rewards™ leading the way

Following a successful launch of Stars for Everyone&nbsp; in the U.S. in Q4, the Starbucks Rewards™ loyalty program achieved phenomenon results in Q1, providing a strong foundation for growth in fiscal 2021 and beyond.

In the U.S., the program grew to a record 21.8 million members* - a 2.5 million increase within the quarter - surpassing pre-COVID totals and representing a 15% increase relative to the same quarter in the prior year. Engagement from Starbucks Rewards members also increased, with these customers contributing 50% of U.S. company-operated sales, up from 43% last year and up from 47% in the prior quarter.

In China, the Starbucks Rewards program grew to 15.4 million in Q1, a record increase of 51% versus the prior year and 14% over the previous quarter. China also reported strong engagement in digital initiatives, including setting a single-day retail sales record on the region’s “Starbucks Rewards Members Night.” Member engagement campaigns and additional functionalities boosted member engagement and frequency throughout the quarter.

4. Cold continues to be hot

Pumpkin Cream Cold Brew’s success in last quarter’s lineup provided a preview to the December return of the new Holiday favorite, Irish Cream Cold Brew, delighting customers. Starbucks Cold beverages continued to resonate with customers, led by Iced White Chocolate Mocha, Iced Chai Latte and Vanilla Sweet Cream Cold Brew, with all three delivering positive year-over-year growth.

In the U.S., the company reported an increase in average ticket, driven by a combination of group ordering and increased beverage attach, premium beverage mix, increased customization and all-time high food attachment drove U.S. ticket growth of approximately 19% in Q1.

5. Powerful partnerships secure channel leadership

The availability of Starbucks products through multiple channels has secured Starbucks leadership position in the category, acting as a brand amplifier for our specialty coffee retail business.

Demand in Starbucks at-home coffee remains high and, in the U.S., Starbucks share of total packaged coffee grew significantly in the quarter with dollar sales up nearly 14%, nearly twice the category average. Through the Global Coffee Alliance with Nestle, the company finished calendar year 2020 as the number one coffee brand across the entire coffee category. With Nestle, Starbucks entered four new markets in the quarter, bringing Starbucks at-home coffee presence through the Global Coffee Alliance to 66 markets in just over two years.&nbsp; &nbsp;&nbsp;

In addition, consumption of U.S. ready-to-drink coffee products (in partnership with PepsiCo) grew 18% in the quarter and the introduction of Ready-to-Drink Nitro Cold Brew, which was the number one innovation in the category last year, exceeded sales expectations.&nbsp;

Fond Farewells and Warm Welcomes&nbsp;

During the call, Starbucks leaders welcomed incoming chief financial officer, Rachel Ruggeri who will assume the role on February 1, as the company announced last month with the planned retirement of current cfo Patrick Grismer.

Additionally, the company shared today that chief operating officer Roz Brewer has accepted a new opportunity as chief executive officer at another publicly traded company and her responsibilities will be assumed by Rossann Williams, president&nbsp; of our North America retail business, and Brady Brewer, executive vice president and chief marketing officer. Combined, Rachel, Rossann and Brady have more than 45 years of Starbucks experience, and the company remains well-positioned for the future.

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*90-day active Starbucks Rewards members as of Q1 FY21

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Key takeaways from Starbucks Q1 FY21 Earnings Results

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In the latest indication that the brand’s relevance with customers remains as strong as ever, Starbucks today announced its Q4 FY20 earnings results that point to a continued business recovery and an optimistic outlook for FY21.

Leveraging rapid innovation while keeping partner (employee) safety as a central focus through the COVID-19 pandemic, the company has shown a new level of resilience through one of the most challenging years for the retail industry.

As part of Starbucks quarterly earnings <a href="https://investor.starbucks.com/ir-home/default.aspx" target="_blank" rel="noreferrer noopener">call</a>, Starbucks president and ceo Kevin Johnson provided specifics on the improving business results and the company’s continued confidence in the path ahead.

“The guiding principles we established at the onset of the pandemic, combined with our industry-leading digital platform and our ability to innovate rapidly, continue to fuel our recovery and provide confidence in a robust operating outlook for fiscal 2021.&nbsp;Our strategies are working and I am optimistic that we will emerge from the COVID-19 pandemic as a stronger and more resilient company,” said Kevin Johnson, president and ceo.&nbsp;

Full details on Starbucks financial results can be found <a href="https://stories.starbucks.com/press/2020/starbucks-reports-q4-fiscal-2020-results/" target="_blank" rel="noreferrer noopener">here</a>.

1. Starbucks recovery strategy is working with the company reporting better-than-expected sales and profits in the fourth quarter. In the U.S., the company finished the quarter with a comparable store sales decline of 4% for the month of September, a vast improvement from the approx. 60% decline experienced at the depth of the pandemic only five months ago.

For the month of September, China’s comparable store sales were up 1%, building on the positive momentum seen in Q3 and reflecting continued sequential improvement. The company opened almost 260 stores in China in the fourth quarter alone, contributing to 14% growth in the market over the last 12 months.

2. Elevating and expanding customer experiences continues to be top of mind for the company. As communities continue to adapt to new routines, including working from home and remote schooling, Starbucks continues to provide familiar experiences, as well as introduce even more convenience including the expansion of Curbside Pickup and introduction of handheld POS devices. Staying ahead of customer trends has resulted in high customer connection and partner engagement scores throughout the pandemic.

3. Seasonal favorites and new innovations continue to delight customers, including the highly-anticipated return of popular Pumpkin Spice products. Sales of the company’s Pumpkin Cream Cold Brew and Pumpkin Spice Latte saw record high in average daily units, and the company’s cold beverage platform also saw strong performance, led by Refreshers and Cold Brew which delivered double-digit growth in Q4. With the holiday season approaching, the company is gearing up for the return of beloved Holiday menu items, including the Peppermint Mocha which is returning for its 18th year.

4. Expanding digital customer connections including convenient and contactless experiences have been key driver to the company’s recovery. In Q4, approx. 75% of U.S. sales volume came from drive-thru and Mobile Orders, balanced with expanded in-store seating in stores where it is safe to do so. The company also saw a rebound in the number of active Starbucks Rewards (SR) members, which grew 10% year over year to 19.3 million members in the U.S with the SR program driving 47% of U.S. company-operated tender for the second straight quarter. Also in Q4, the company launched “<a href="https://www.starbucks.com/rewards" target="_blank" rel="noreferrer noopener">Stars for Everyone</a>” which removed the Stored Value Card requirement to join the SR loyalty program.

In China, Starbucks saw continued strength in the mobile platform with mobile order sales mix more than doubling in the past 12 months to 26% in Q4. The digital innovations launched in China throughout fiscal 2020 include a new WeChat Mini-program and the enhanced Starbucks Rewards program, as well as a digital partnership with Alibaba, have fueled customer engagement and strong sequential growth in active Rewards members in the market.

5. Looking ahead to fiscal 2021, the company shared guidance on what investors can expect moving forward, including:

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Barista carrying tray outside for curbside pickup

Starbucks president and ceo Kevin Johnson provided specifics on the improving business results and the company’s continued confidence in the path ahead.

Key takeaways from Starbucks Q4 FY20 earnings results

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https://stories.starbucks.com/press/2020/key-takeaways-from-starbucks-q4-fy20-earnings-results/

As part of Starbucks quarterly earnings call, Starbucks president and ceo Kevin Johnson provided specifics on the improving business results and the company’s continued confidence in the path ahead.

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Q4 Comparable Store Sales of -9% in the U.S. and -3% in China, Demonstrating Sustained Recovery Q4 GAAP EPS of $0.33; Non-GAAP EPS of $0.51 Reflecting Substantial Improvement from Q3 Active Starbucks® Rewards Membership in the U.S. Up 10% Year-Over-Year to 19.3 Million Fiscal 2021 Outlook Reaffirms Path to Full Recovery

SEATTLE – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourth quarter ended September&nbsp;27, 2020.&nbsp; GAAP results in fiscal 2020 and fiscal 2019 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.

“I am very pleased with our strong finish to fiscal 2020, underpinned by a faster-than-expected recovery in our two lead growth markets, the U.S. and China.&nbsp; These results demonstrate the continued strength and relevance of our brand,&nbsp;the effectiveness of the actions we’ve taken to adapt to meaningful changes in consumer behavior and the extraordinary efforts of our green apron partners to serve our customers and communities in challenging circumstances,” said Kevin Johnson, president and ceo.&nbsp;

“The guiding principles we established at the onset of the pandemic, combined with our industry-leading digital platform and our ability to innovate rapidly, continue to fuel our recovery and provide confidence in a robust operating outlook for fiscal 2021.&nbsp; Our strategies are working and I am optimistic that we will emerge from the COVID-19 pandemic as a stronger and more resilient company,” concluded Johnson.

PDF: <a href="https://stories.starbucks.com/uploads/2020/10/Starbucks-Earnings-Release-Q4-FY20.pdf">Detailed financial data</a>

Q4 Fiscal 2020 Highlights

Full Year Fiscal 2020 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 the&nbsp;<a href="https://78449.themediaframe.com/dataconf/productusers/sbux/mediaframe/33695/indexl.html">live audio webcast</a>.

(1)In this earnings release, we estimated the impact of COVID-19 by comparing actual results to our previous forecasts.&nbsp; These forecasts were created before the spread of the virus and were based on information available at the time and on various assumptions that we believe were reasonable.&nbsp;

(2)In this earnings release, the EPS impact of COVID-19 represents an approximation based on the pandemic’s estimated impact on operating results.&nbsp; It does not incorporate any impacts of COVID-19 on non-operating items, such as interest income, interest expense, income taxes and outstanding shares.

"These results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt," said Kevin Johnson.

Starbucks Reports Q4 Fiscal 2020 Results

https://stories.starbucks.com/press/2020/starbucks-reports-q4-fiscal-2020-results/

"These results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt to meaningful changes in consumer behavior," said Kevin Johnson.

Q3 Consolidated Net Revenues of $4.2 Billion, Down 38% from Prior Year Due to Adverse Impact of COVID-19

Q3 GAAP EPS of -$0.58; Non-GAAP EPS of -$0.46 Reflecting Material Sales Deleverage and Retail Partner Support

COVID-19 Impacts Expected to Moderate Meaningfully in Q4 as Recovery Continues

SEATTLE; Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal third quarter ended June&nbsp;28, 2020.&nbsp; GAAP results in fiscal 2020 and fiscal 2019 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.

“Since the beginning of the COVID-19 outbreak in January, we have taken a principled approach to navigate the crisis, true to our mission and values.&nbsp; Every step of the way, we have thoughtfully addressed the needs of Starbucks stakeholders and are particularly proud of the industry-leading investments we have made to support our partners while creating a safe, familiar and convenient experience for our customers.&nbsp; Starbucks partners have risen to the occasion, and our near-term focus is to recover sales safely and responsibly by offering our customers the comfort and care that differentiate the Starbucks Experience,” said Kevin Johnson, president and ceo.

“We are pleased to share that the vast majority of Starbucks stores around the world have reopened and our global business is steadily recovering, demonstrating the relevance of the Starbucks brand and the trust we have built with our customers.&nbsp; As we continue to drive the recovery, we are also building resilience for the future by accelerating the transformation of our business in ways that will elevate the customer and partner experience and drive long-term growth.&nbsp; We firmly believe that we are well positioned to regain the positive business momentum we had before the pandemic began and look forward to reigniting our 'Growth at Scale' agenda,” concluded Johnson.

PDF: <a href="https://stories.starbucks.com/uploads/2020/07/Starbucks-Q3-FY20-Earnings-Release.pdf">Detailed financial data</a>

Q3 Fiscal 2020 Highlights

Visit the <a href="https://investor.starbucks.com/ir-home/default.aspx" target="_blank" rel="noreferrer noopener">Investor Relations page </a>to access the <a href="https://78449.themediaframe.com/dataconf/productusers/sbux/mediaframe/33694/indexl.html" target="_blank" rel="noreferrer noopener">live audio webcast</a>.

(1) In this release, we estimate the impact of COVID-19 by comparing actual results to our previous forecasts.&nbsp; These forecasts were created prior to the spread of the virus and were based on information available at the time and on a variety of assumptions which we believe were reasonable, some or all of which may prove not to be accurate.

(2) In this release, the EPS impact of COVID-19 represents an approximation based on the estimated impact of the pandemic on operating results. It does not incorporate any impacts of COVID-19 on non-operating items, such as interest income, interest expense, income taxes and outstanding shares.

Starbucks today reported financial results for its 13-week fiscal third quarter ended June 28, 2020.

Starbucks Reports Q3 Fiscal 2020 Results

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https://stories.starbucks.com/press/2020/starbucks-reports-q3-fiscal-2020-results/

"Starbucks partners have risen to the occasion, and our near-term focus is to recover sales safely and responsibly by offering our customers the comfort and care that differentiate the Starbucks Experience," said Kevin Johnson.

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Starbucks today announced its Q3 FY20 earnings results, providing insight into the company’s continued road to recovery from the COVID-19 pandemic. Full details on the company’s financial results, can be found <a href="https://stories.starbucks.com/press/2020/starbucks-reports-q3-fiscal-2020-results/" target="_blank" rel="noreferrer noopener">here</a>.

As part of Starbucks quarterly earnings call, Starbucks president and ceo Kevin Johnson will provide specifics on the improving business results the company is driving through COVID-19 as well as details of how Starbucks is playing offense by accelerating key strategic initiatives that further differentiate Starbucks and reinforce the long-term, sustainable growth opportunity ahead.

“We are pleased to share that the vast majority of Starbucks stores around the world have reopened and our global business is steadily recovering, demonstrating the relevance of the Starbucks brand and the trust we have built with our customers,” said Johnson. “As we continue to drive the recovery, we are also building resilience for the future by accelerating the transformation of our business in ways that will elevate the customer and partner experience and drive long-term growth. We firmly believe that we are well positioned to regain the positive business momentum we had before the pandemic began and look forward to reigniting our 'Growth at Scale' agenda.”

1. Starbucks recovery strategy is working as company sees meaningful improvements in both sales and profitability as the quarter unfolded: At the close of Q3,96% of Starbucks company-operated stores were open in the U.S. (up from 44% at the beginning of the quarter), and the company saw weekly U.S. comps steadily improve throughout the quarter. Through the quarter, the company posted all-time-high customer connection scores as customers returned, indicating the strength of the recovery across the businesses.

On the call with investors, Johnson shared, “With the vast majority of stores around the world now reopened, we saw meaningful improvements in both sales and profitability as the quarter unfolded. Additionally, customer affinity for Starbucks is very strong as demonstrated by improvements in our customer connection scores, growth in customer loyalty, and market share gains.&nbsp; While we anticipate these improvements to continue, our balance sheet and the strategic actions we have taken have positioned Starbucks to weather a more protracted disruption in global economic activity.”

2. Company stays ahead of evolving customer behaviors with flexible store and digital experiences: Today, customers are seeking safe, familiar, and convenient experiences in many aspects of their lives—and in that regard, Starbucks digital assets have proven to be a competitive advantage. Mobile Order and Pay reached a record 22% of transactions in Q3, thanks in part to the contactless approach in stores. Delivery usage tripled in Q3 from the prior quarter and, Starbucks has begun rolling out curbside pickup with positive early results. Further, with plans for 700-1,000 Curbside locations and 50 new Starbucks PickUp locations, the company is well positioned to drive further recovery by increasing throughput.

Johnson further noted, “In response to clear shifts in consumer behavior and preferences, we are now accelerating strategic initiatives for the future and positioning Starbucks for continued long-term growth.&nbsp; We have moved aggressively to advance our evolution of the store base to accommodate trends that we have long seen emerging in our business that were only exacerbated by COVID-19.

3. Starbucks sees growing customer loyalty and readies to enhance the program this Fall: In Q3, the Starbucks Rewards™ loyalty program as a percentage of tender rose four percentage points from a year ago to 46% - above the pre-COVID trend – with year-over-year sales growth from Starbucks Rewards customers turning positive in early July. Earlier this month, the company <a href="https://stories.starbucks.com/stories/2020/starbucks-to-offer-rewards-members-more-ways-to-pay-and-earn-stars/">announced plans to build on this momentum in the Fall</a>, when it introduces a new, pay-as-you-go option for Starbucks Rewards members in the U.S. and Canada.

To investors, Johnson offered, “In every industry, there are periods of disruption that create great opportunity for those businesses that adapt to the disruption, invest in relevant ways, and strengthen their differentiation and competitive advantage. Those businesses that fail to evolve, typically fall behind. Given the strength of our brand, our advanced digital capabilities and our strong balance sheet, I believe this is one of those rare opportunities to move aggressively and further differentiate Starbucks from our competition.”

4. Demand for Starbucks at-home coffee soars: In a quarter where at-home coffee consumption has soared, Starbucks Channel Development business has gained market share as customers adjust to their at-home routines. Through the Global Coffee Alliance with Nestlé, combined with the company’s ready-to-drink partners Pepsico and Tingyi, Starbucks has extended the ability to meet customers where they are.

“This has been a quarter where demand for at-home coffee has soared and our Channel Development business has demonstrated tremendous resilience and gained market share as customers adjust to their at-home routines,” Johnson said.

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Starbucks today announced its Q3 FY20 earnings results, providing insight into the company’s continued road to recovery from the COVID-19 pandemic.

Starbucks provides financial report for Q3 Fiscal Year 2020 results

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Key takeaways from Starbucks Q3 FY20 earnings results

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