Q3 Consolidated Net Revenues of $9.1 Billion,
Down 1%; Up 1% in Constant Currency; Up 6% Over Q2 Q3 GAAP and
Non-GAAP EPS of $0.93; Action Plans Partially Offset Continued
Headwinds Q3 Active U.S. Starbucks® Rewards Membership Totals 33.8
Million, Up 7% Over Prior Year and Up 3% Over Q2
Starbucks Corporation (Nasdaq: SBUX) today reported financial
results for its 13-week fiscal third quarter ended June 30, 2024.
GAAP results in fiscal 2024 and fiscal 2023 include items that are
excluded from non-GAAP results. Please refer to the reconciliation
of GAAP measures to non-GAAP measures at the end of this release
for more information.
Q3 Fiscal 2024
Highlights
- Global comparable store sales declined 3%, driven by a 5%
decline in comparable transactions, partially offset by a 2%
increase in average ticket
- North America comparable store sales declined 2%, driven by a
6% decline in comparable transactions, partially offset by a 3%
increase in average ticket; U.S. comparable store sales declined
2%, driven by a 6% decline in comparable transactions, partially
offset by a 4% increase in average ticket
- International comparable store sales declined 7%, driven by a
4% decline in average ticket and a 3% decline in comparable
transactions; China comparable store sales declined 14%, driven by
a 7% decline in both average ticket and comparable
transactions
- The company opened 526 net new stores in Q3, ending the period
with 39,477 stores: 52% company-operated and 48% licensed
- At the end of Q3, stores in the U.S. and China comprised 61% of
the company’s global portfolio, with 16,730 and 7,306 stores in the
U.S. and China, respectively
- Consolidated net revenues declined 1% to $9.1 billion, or a 1%
increase on a constant currency basis
- GAAP operating margin contracted 60 basis points year-over-year
to 16.7%, primarily driven by increased promotional activity,
investments in store partner wages and benefits, and deleverage.
This contraction was partially offset by pricing and in-store
operational efficiencies.
- Non-GAAP operating margin contracted 70 basis points
year-over-year to 16.7% on a constant currency basis
- GAAP earnings per share of $0.93 declined 6% over prior year
- Non-GAAP earnings per share of $0.93 declined 7% over prior
year, or declined 6% on a constant currency basis
- Starbucks Rewards loyalty program 90-day active members in the
U.S. totaled 33.8 million, up 7% year-over-year
“Our three-part action plan is beginning to work and driving
operational improvements that we expect to improve financial
performance,” commented Laxman Narasimhan, chief executive officer.
“Our growing culture of focused innovation and relentless execution
continues to enhance our capabilities, while helping return the
business to sustainable growth,” Narasimhan added.
“Our efficiency efforts, which are tracking ahead of
expectations, partially offset investments associated with the
cautious consumer environment,” commented Rachel Ruggeri, chief
financial officer. “Collectively, our disciplined approach enables
us to preserve both balance sheet strength and flexibility,
positioning us to successfully navigate through the current
macroeconomic environment,” Ruggeri added.
Q3 North America Segment
Results
Quarter Ended
($ in millions)
Jun 30, 2024
Jul 2, 2023
Change (%)
Change in Comparable Store Sales (1)
(2)%
7%
Change in Transactions
(6)%
1%
Change in Ticket
3%
6%
Store Count
18,198
17,592
3%
Revenues
$6,816.7
$6,737.8
1%
Operating Income
$1,432.7
$1,463.9
(2)%
Operating Margin
21.0%
21.7%
(70) bps
(1)
Includes only Starbucks®
company-operated stores open 13 months or longer. Comparable store
sales exclude the effects of fluctuations in foreign currency
exchange rates and Siren Retail stores. Stores that are temporarily
closed or operating at reduced hours remain in comparable store
sales while stores identified for permanent closure have been
removed.
Net revenues for the North America segment increased 1% over Q3
FY23 to $6.8 billion in Q3 FY24, primarily driven by net new
company-operated store growth of 5% over the past 12 months, as
well as growth in our licensed store business. This increase was
partially offset by a 2% decline in comparable store sales, driven
by a 6% decline in comparable transactions, partially offset by a
3% increase in average ticket.
Operating income decreased to $1.4 billion in Q3 FY24 compared
to $1.5 billion in Q3 FY23. Operating margin of 21.0% contracted
from 21.7% in the prior year, primarily driven by investments in
store partner wages and benefits, increased promotional activity,
and deleverage. This contraction was partially offset by pricing
and in-store operational efficiencies.
Q3 International Segment
Results
Quarter Ended
($ in millions)
Jun 30, 2024
Jul 2, 2023
Change (%)
Change in Comparable Store Sales (1)
(7)%
24%
Change in Transactions
(3)%
21%
Change in Ticket
(4)%
2%
Store Count
21,279
19,630
8%
Revenues
$1,842.1
$1,972.9
(7)%
Operating Income
$287.5
$374.5
(23)%
Operating Margin
15.6%
19.0%
(340) bps
(1)
Includes only Starbucks®
company-operated stores open 13 months or longer. Comparable store
sales exclude the effects of fluctuations in foreign currency
exchange rates and Siren Retail stores. Stores that are temporarily
closed or operating at reduced hours remain in comparable store
sales while stores identified for permanent closure have been
removed.
Net revenues for the International segment declined 7% over Q3
FY23 to $1.8 billion in Q3 FY24, primarily driven by an approximate
5% unfavorable impact from foreign currency translation and a 7%
decline in comparable store sales, driven by a 4% decline in
average ticket and 3% decline in comparable transactions. Another
factor was lower product and equipment sales to, and royalty
revenues from, our licensees. This decline was partially offset by
net new company-operated store growth of 11% over the past 12
months.
Operating income decreased to $287.5 million in Q3 FY24 compared
to $374.5 million in Q3 FY23. Operating margin of 15.6% contracted
from 19.0% in the prior year, primarily driven by promotional
activities, investments in store partner wages and benefits, and
strategic investments. This contraction was partially offset by
in-store operational efficiencies.
Q3 Channel Development Segment
Results
Quarter Ended
($ in millions)
Jun 30, 2024
Jul 2, 2023
Change (%)
Revenues
$438.3
$448.8
(2)%
Operating Income
$235.2
$208.0
13%
Operating Margin
53.7%
46.3%
740 bps
Net revenues for the Channel Development segment declined 2%
over Q3 FY23 to $438.3 million in Q3 FY24, primarily due to a
decline in revenue in the Global Coffee Alliance, from SKU
optimization and following the sale of Seattle's Best Coffee brand
in the prior year. This decline was partially offset by an increase
in global ready-to-drink revenue.
Operating income increased to $235.2 million in Q3 FY24 compared
to $208.0 million in Q3 FY23. Operating margin of 53.7% expanded
from 46.3% in the prior year, primarily due to sales mix shift,
lower product costs related to the Global Coffee Alliance, and
strength in our North American Coffee Partnership joint venture
income.
Fiscal 2024 Financial
Targets
The company will discuss fiscal year 2024 financial targets
during its Q3 FY24 earnings conference call starting today at 2:00
p.m. Pacific Time. These items can be accessed on the company's
Investor Relations website during and after the call. The company
uses its website as a tool to disclose important information about
the company and comply with its disclosure obligations under
Regulation Fair Disclosure.
Company Update
- In May, the company announced new commitments to further
support LGBTQIA2+ partners and communities, including an expanded
partnership with the National Center for Transgender Equality,
providing transgender, non-binary, and gender non-conforming
partners support for name and gender marker changes.
- In May, Satya Nadella resigned from the company's Board of
Directors (the “Board”), stating, "I have the utmost confidence in
Laxman and our senior leadership team. Their unwavering commitment
and strategic acumen assure me that Starbucks is in capable hands,
poised for a future filled with innovation and success." Following
his departure, the size of the Board was reduced to ten
members.
- In June, the company announced a partnership with Grubhub,
rolling out Starbucks Delivery with Grubhub in select U.S. markets,
with the goal of national availability in all 50 states by August
2024. Offering customers the convenience of ordering from Starbucks
through three leading delivery platforms, Starbucks Delivery is
expected to approach $1 billion in U.S. revenue this fiscal year,
doubling in just two years and continuing to be a growing part of
our business.
- In June, the company announced Starbucks Studios. This new
initiative will produce original entertainment and amplify stories
to advance further our company mission to foster human connection
and joy, elevating the brand experience.
- In June, the company launched loyalty partnerships with
Marriott Bonvoy and Hilton Honors, in the U.S. and China,
respectively. The partnerships allow Starbucks® Rewards members the
ability to link accounts and unlock exclusive benefits for travel
and coffee, as well as earn additional benefits, creating more
value for our members and support program growth.
- The Board of Directors declared a cash dividend of $0.57 per
share, payable on August 30, 2024, to shareholders of record on
August 16, 2024. The company had 57 consecutive quarters of
dividend payouts with CAGR of approximately 20% over that time
period, demonstrating the company's commitment to consistent value
creation for shareholders.
Conference Call
Starbucks will hold a conference call today at 2:00 p.m. Pacific
Time, which will be hosted by Laxman Narasimhan, ceo, and Rachel
Ruggeri, cfo. The call will be webcast and can be accessed at
http://investor.starbucks.com. A replay of the webcast will be
available until end of day Friday, September 13, 2024.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with more than 39,000 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 and in our investor
conference call related to these results 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. By
their nature, forward-looking statements involve risks,
uncertainties, and other factors (many beyond our control) that
could cause our actual results to differ materially from our
historical experience or from our current expectations or
projections. Our forward-looking statements, and the risks and
uncertainties related thereto, include, but are not limited to,
those described under 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 in other filings with the
SEC, as well as:
- our ability to preserve, grow, and leverage our brands,
including the risk of negative responses by consumers (such as
boycotts or negative publicity campaigns) or governmental actors
(such as retaliatory legislative treatment) who object to certain
actions taken or not taken by the Company, which responses could
adversely affect our brand value;
- the acceptance of the company’s products and changes in
consumer preferences, consumption, or spending behavior and our
ability to anticipate or react to them; shifts in demographic or
health and wellness trends; or unfavorable consumer reaction to new
products, platforms, reformulations, or other innovations;
- our anticipated operating expenses, including our anticipated
total capital expenditures;
- the costs associated with, and the successful execution and
effects of, our existing and any future business opportunities,
expansions, initiatives, strategies, investments, and plans,
including our Triple Shot Reinvention with Two Pumps Plan;
- the impacts of partner investments and changes in the
availability and cost of labor including any union organizing
efforts and our responses to such efforts;
- the ability of our business partners, suppliers and third-party
providers to fulfill their responsibilities and commitments;
- higher costs, lower quality, or unavailability of coffee,
dairy, cocoa, energy, water, raw materials, or product
ingredients;
- the impact of adverse weather conditions or natural
disasters;
- the impact of significant increases in logistics costs;
- a worsening in the terms and conditions upon which we engage
with our manufacturers and source suppliers, whether resulting from
broader local or global conditions, or dynamics specific to our
relationships with such parties;
- unfavorable global or regional economic conditions and related
economic slowdowns or recessions, low consumer confidence, high
unemployment, weak credit or capital markets, budget deficits,
burdensome government debt, austerity measures, higher interest
rates, higher taxes, political instability, higher inflation, or
deflation;
- inherent risks of operating a global business including
geopolitical instability, local labor policies and conditions,
including labor strikes and work stoppages, protectionist trade
policies, or economic or trade sanctions, and compliance with local
trade practices and other regulations;
- failure to attract or retain key executive or partner talent or
successfully transition executives;
- the potential negative effects of incidents involving food or
beverage-borne illnesses, tampering, adulteration, contamination or
mislabeling;
- negative publicity related to our company, products, brands,
marketing, executive leadership, partners, board of directors,
founder, operations, business performance, expansions, initiatives,
strategies, investments, plans, or prospects;
- potential negative effects of a material breach, failure, or
corruption of our information technology systems or those of our
direct and indirect business partners, suppliers or third-party
providers, or failure to comply with data protection laws;
- our environmental, community, and farmer promises and any
reaction related thereto, such as the rise in opposition to “ESG”
and inclusion and diversity efforts;
- risks associated with acquisitions, dispositions, business
partnerships, or investments – such as acquisition integration,
termination difficulties or costs, or impairment in recorded
value;
- the impact of foreign currency translation, particularly a
stronger U.S. dollar;
- the impact of substantial competition from new entrants,
consolidations by competitors, and other competitive activities,
such as pricing actions (including price reductions, promotions,
discounting, couponing, or free goods), marketing, category
expansion, product introductions, or entry or expansion in our
geographic markets;
- the impact of changes in U.S. tax law and related guidance and
regulations that may be implemented, including on tax rates;
- the impact of health epidemics, pandemics, or other public
health events on our business and financial results, and the risk
of negative economic impacts and related regulatory measures or
voluntary actions that may be put in place, including restrictions
on business operations or social distancing requirements, and the
duration and efficacy of such restrictions;
- failure to comply with anti-corruption laws, trade sanctions
and restrictions, or similar laws or regulations; and
- the impact of significant legal disputes and proceedings, or
government investigations.
In addition, many of the foregoing risks and uncertainties are,
or could be, exacerbated by any worsening of the global business
and economic environment. 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 report. We are under no obligation to
update or alter any forward-looking statements, whether as a result
of new information, future events, or otherwise.
Key Metrics
The company's financial results and long-term growth model will
continue to be driven by new store openings, comparable store sales
growth and operating margin management. We believe these key
operating metrics are useful to investors because management uses
these metrics to assess the growth of our business and the
effectiveness of our marketing and operational strategies.
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF
EARNINGS
(unaudited, in millions, except
per share data)
Quarter Ended
Quarter Ended
Jun 30,
Jul 2,
%
Jun 30,
Jul 2,
2024
2023
Change
2024
2023
As a % of total net
revenues
Net revenues:
Company-operated stores
$
7,516.0
$
7,556.7
(0.5
)%
82.5
%
82.4
%
Licensed stores
1,129.0
1,136.2
(0.6
)
12.4
12.4
Other
468.9
475.4
(1.4
)
5.1
5.2
Total net revenues
9,113.9
9,168.3
(0.6
)
100.0
100.0
Product and distribution costs
2,740.9
2,864.2
(4.3
)
30.1
31.2
Store operating expenses
3,829.1
3,697.6
3.6
42.0
40.3
Other operating expenses
143.9
138.7
3.7
1.6
1.5
Depreciation and amortization expenses
380.4
342.2
11.2
4.2
3.7
General and administrative expenses
576.0
604.3
(4.7
)
6.3
6.6
Restructuring and impairments
—
7.1
nm
—
0.1
Total operating expenses
7,670.3
7,654.1
0.2
84.2
83.5
Income from equity investees
73.9
69.7
6.0
0.8
0.8
Operating income
1,517.5
1,583.9
(4.2
)
16.7
17.3
Interest income and other, net
28.1
21.3
31.9
0.3
0.2
Interest expense
(141.3
)
(140.9
)
0.3
(1.6
)
(1.5
)
Earnings before income taxes
1,404.3
1,464.3
(4.1
)
15.4
16.0
Income tax expense
348.6
322.4
8.1
3.8
3.5
Net earnings including noncontrolling
interests
1,055.7
1,141.9
(7.5
)
11.6
12.5
Net earnings attributable to
noncontrolling interests
0.9
0.2
350.0
0.0
0.0
Net earnings attributable to
Starbucks
$
1,054.8
$
1,141.7
(7.6
)
11.6
%
12.5
%
Net earnings per common share -
diluted
$
0.93
$
0.99
(6.1
)%
Weighted avg. shares outstanding -
diluted
1,135.8
1,150.5
Cash dividends declared per share
$
0.57
$
0.53
Supplemental Ratios:
Store operating expenses as a % of
company-operated store revenues
50.9
%
48.9
%
Effective tax rate including
noncontrolling interests
24.8
%
22.0
%
Three Quarters Ended
Three Quarters Ended
Jun 30,
Jul 2,
%
Jun 30,
Jul 2,
2024
2023
Change
2024
2023
As a % of total net
revenues
Net revenues:
Company-operated stores
$
22,323.8
$
21,782.4
2.5
%
82.4
%
81.9
%
Licensed stores
3,375.7
3,325.2
1.5
12.5
12.5
Other
1,402.8
1,494.4
(6.1
)
5.2
5.6
Total net revenues
27,102.3
26,602.0
1.9
100.0
100.0
Product and distribution costs
8,370.2
8,476.1
(1.2
)
30.9
31.9
Store operating expenses
11,404.7
10,998.9
3.7
42.1
41.3
Other operating expenses
427.1
394.1
8.4
1.6
1.5
Depreciation and amortization expenses
1,117.6
1,011.2
10.5
4.1
3.8
General and administrative expenses
1,878.6
1,805.6
4.0
6.9
6.8
Restructuring and impairments
—
21.8
nm
—
0.1
Total operating expenses
23,198.2
22,707.7
2.2
85.6
85.4
Income from equity investees
197.8
179.0
10.5
0.7
0.7
Gain from sale of assets
—
91.3
nm
—
0.3
Operating income
4,101.9
4,164.6
(1.5
)
15.1
15.7
Interest income and other, net
96.0
51.1
87.9
0.4
0.2
Interest expense
(422.0
)
(406.9
)
3.7
(1.6
)
(1.5
)
Earnings before income taxes
3,775.9
3,808.8
(0.9
)
13.9
14.3
Income tax expense
923.2
903.4
2.2
3.4
3.4
Net earnings including noncontrolling
interests
2,852.7
2,905.4
(1.8
)
10.5
10.9
Net earnings attributable to
noncontrolling interests
1.0
0.2
400.0
0.0
0.0
Net earnings attributable to
Starbucks
$
2,851.7
$
2,905.2
(1.8
)
10.5
%
10.9
%
Net earnings per common share -
diluted
$
2.51
$
2.52
(0.4
)%
Weighted avg. shares outstanding -
diluted
1,137.3
1,152.0
Cash dividends declared per share
$
1.71
$
1.59
Supplemental Ratios:
Store operating expenses as a % of
company-operated store revenues
51.1
%
50.5
%
Effective tax rate including
noncontrolling interests
24.4
%
23.7
%
Segment Results (in
millions)
North America
Jun 30,
Jul 2,
%
Jun 30,
Jul 2,
2024
2023
Change
2024
2023
Quarter
Ended
As a % of North
America
total net revenues
Net revenues:
Company-operated stores
$
6,135.0
$
6,080.6
0.9
%
90.0
%
90.2
%
Licensed stores
681.3
655.8
3.9
10.0
9.7
Other
0.4
1.4
(71.4
)
0.0
0.0
Total net revenues
6,816.7
6,737.8
1.2
100.0
100.0
Product and distribution costs
1,831.9
1,885.4
(2.8
)
26.9
28.0
Store operating expenses
3,131.1
2,990.1
4.7
45.9
44.4
Other operating expenses
69.5
67.8
2.5
1.0
1.0
Depreciation and amortization expenses
266.6
230.4
15.7
3.9
3.4
General and administrative expenses
84.9
93.1
(8.8
)
1.2
1.4
Restructuring and impairments
—
7.1
nm
—
0.1
Total operating expenses
5,384.0
5,273.9
2.1
79.0
78.3
Operating income
$
1,432.7
$
1,463.9
(2.1
)%
21.0
%
21.7
%
Supplemental Ratio:
Store operating expenses as a % of
company-operated store revenues
51.0
%
49.2
%
Three Quarters
Ended
Net revenues:
Company-operated stores
$
18,240.7
$
17,693.9
3.1
%
89.8
%
90.0
%
Licensed stores
2,074.1
1,973.2
5.1
10.2
10.0
Other
2.8
2.6
7.7
0.0
0.0
Total net revenues
20,317.6
19,669.7
3.3
100.0
100.0
Product and distribution costs
5,623.5
5,624.7
—
27.7
28.6
Store operating expenses
9,316.2
8,973.2
3.8
45.9
45.6
Other operating expenses
214.0
196.7
8.8
1.1
1.0
Depreciation and amortization expenses
774.2
673.5
15.0
3.8
3.4
General and administrative expenses
287.9
286.6
0.5
1.4
1.5
Restructuring and impairments
—
20.7
nm
—
0.1
Total operating expenses
16,215.8
15,775.4
2.8
79.8
80.2
Operating income
$
4,101.8
$
3,894.3
5.3
%
20.2
%
19.8
%
Supplemental Ratio:
Store operating expenses as a % of
company-operated store revenues
51.1
%
50.7
%
International
Jun 30,
Jul 2,
%
Jun 30,
Jul 2,
2024
2023
Change
2024
2023
Quarter
Ended
As a % of
International
total net revenues
Net revenues:
Company-operated stores
$
1,381.0
$
1,476.1
(6.4
)%
75.0
%
74.8
%
Licensed stores
447.7
480.4
(6.8
)
24.3
24.3
Other
13.4
16.4
(18.3
)
0.7
0.8
Total net revenues
1,842.1
1,972.9
(6.6
)
100.0
100.0
Product and distribution costs
637.1
677.3
(5.9
)
34.6
34.3
Store operating expenses
698.0
707.5
(1.3
)
37.9
35.9
Other operating expenses
58.8
54.3
8.3
3.2
2.8
Depreciation and amortization expenses
82.7
83.1
(0.5
)
4.5
4.2
General and administrative expenses
80.5
77.0
4.5
4.4
3.9
Total operating expenses
1,557.1
1,599.2
(2.6
)
84.5
81.1
Income from equity investees
2.5
0.8
212.5
0.1
0.0
Operating income
$
287.5
$
374.5
(23.2
)%
15.6
%
19.0
%
Supplemental Ratio:
Store operating expenses as a % of
company-operated store revenues
50.5
%
47.9
%
Three Quarters
Ended
Net revenues:
Company-operated stores
$
4,083.1
$
4,088.5
(0.1
)%
75.0
%
74.2
%
Licensed stores
1,301.6
1,352.0
(3.7
)
23.9
24.5
Other
60.9
67.3
(9.5
)
1.1
1.2
Total net revenues
5,445.6
5,507.8
(1.1
)
100.0
100.0
Product and distribution costs
1,923.5
1,903.8
1.0
35.3
34.6
Store operating expenses
2,088.5
2,025.7
3.1
38.4
36.8
Other operating expenses
168.8
155.0
8.9
3.1
2.8
Depreciation and amortization expenses
251.0
250.8
0.1
4.6
4.6
General and administrative expenses
253.9
244.9
3.7
4.7
4.4
Total operating expenses
4,685.7
4,580.2
2.3
86.0
83.2
Income from equity investees
2.9
2.0
45.0
0.1
0.0
Operating income
$
762.8
$
929.6
(17.9
)%
14.0
%
16.9
%
Supplemental Ratio:
Store operating expenses as a % of
company-operated store revenues
51.1
%
49.5
%
Channel Development
Jun 30,
Jul 2,
%
Jun 30,
Jul 2,
2024
2023
Change
2024
2023
Quarter
Ended
As a % of
Channel Development
total net revenues
Net revenues
$
438.3
$
448.8
(2.3
)%
Product and distribution costs
257.7
293.0
(12.0
)
58.8
%
65.3
%
Other operating expenses
15.2
14.8
2.7
3.5
3.3
Depreciation and amortization expenses
—
0.0
nm
—
0.0
General and administrative expenses
1.6
1.9
(15.8
)
0.4
0.4
Total operating expenses
274.5
309.7
(11.4
)
62.6
69.0
Income from equity investees
71.4
68.9
3.6
16.3
15.4
Operating income
$
235.2
$
208.0
13.1
%
53.7
%
46.3
%
Three Quarters
Ended
Net revenues
$
1,304.5
$
1,407.7
(7.3
)%
Product and distribution costs
789.3
932.7
(15.4
)
60.5
%
66.3
%
Other operating expenses
43.2
40.6
6.4
3.3
2.9
Depreciation and amortization expenses
—
0.1
nm
—
0.0
General and administrative expenses
5.7
6.2
(8.1
)
0.4
0.4
Total operating expenses
838.2
979.6
(14.4
)
64.3
69.6
Income from equity investees
194.9
177.0
10.1
14.9
12.6
Gain from sale of assets
—
91.3
nm
—
6.5
Operating income
$
661.2
$
696.4
(5.1
)%
50.7
%
49.5
%
Corporate and Other
Jun 30,
Jul 2,
%
2024
2023
Change
Quarter
Ended
Net revenues
$
16.8
$
8.8
90.9
%
Product and distribution costs
14.2
8.5
67.1
Other operating expenses
0.4
1.8
(77.8
)
Depreciation and amortization expenses
31.1
28.7
8.4
General and administrative expenses
409.0
432.3
(5.4
)
Total operating expenses
454.7
471.3
(3.5
)
Operating loss
$
(437.9
)
$
(462.5
)
(5.3
)%
Three Quarters
Ended
Net revenues
$
34.6
$
16.8
106.0
%
Product and distribution costs
33.9
14.9
127.5
Other operating expenses
1.1
1.8
(38.9
)
Depreciation and amortization expenses
92.4
86.8
6.5
General and administrative expenses
1,331.1
1,267.9
5.0
Restructuring and impairments
—
1.1
nm
Total operating expenses
1,458.5
1,372.5
6.3
Operating loss
$
(1,423.9
)
$
(1,355.7
)
5.0
%
STARBUCKS CORPORATION
CONSOLIDATED BALANCE
SHEETS
(unaudited, in millions, except
per share data)
Jun 30, 2024
Oct 1, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
3,179.1
$
3,551.5
Short-term investments
212.3
401.5
Accounts receivable, net
1,146.0
1,184.1
Inventories
1,854.7
1,806.4
Prepaid expenses and other current
assets
415.8
359.9
Total current assets
6,807.9
7,303.4
Long-term investments
274.8
247.4
Equity investments
456.1
439.9
Property, plant and equipment, net
8,080.3
7,387.1
Operating lease, right-of-use asset
8,808.1
8,412.6
Deferred income taxes, net
1,701.6
1,769.8
Other long-term assets
693.7
546.5
Other intangible assets
105.7
120.5
Goodwill
3,183.6
3,218.3
TOTAL ASSETS
$
30,111.8
$
29,445.5
LIABILITIES AND SHAREHOLDERS'
EQUITY/(DEFICIT)
Current liabilities:
Accounts payable
$
1,586.3
$
1,544.3
Accrued liabilities
2,081.5
2,145.1
Accrued payroll and benefits
708.4
828.3
Current portion of operating lease
liability
1,419.2
1,275.3
Stored value card liability and current
portion of deferred revenue
1,831.0
1,700.2
Short-term debt
23.1
33.5
Current portion of long-term debt
—
1,818.6
Total current liabilities
7,649.5
9,345.3
Long-term debt
15,551.4
13,547.6
Operating lease liability
8,298.1
7,924.8
Deferred revenue
6,011.0
6,101.8
Other long-term liabilities
539.2
513.8
Total liabilities
38,049.2
37,433.3
Shareholders’ deficit:
Common stock ($0.001 par value) —
authorized, 2,400.0 shares; issued and outstanding, 1,133.1 and
1,142.6 shares, respectively
1.1
1.1
Additional paid-in capital
223.0
38.1
Retained deficit
(7,561.5
)
(7,255.8
)
Accumulated other comprehensive
income/(loss)
(608.0
)
(778.2
)
Total shareholders’ deficit
(7,945.4
)
(7,994.8
)
Noncontrolling interests
8.0
7.0
Total deficit
(7,937.4
)
(7,987.8
)
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY/(DEFICIT)
$
30,111.8
$
29,445.5
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited, in millions)
Three Quarters Ended
Jun 30, 2024
Jul 2, 2023
OPERATING ACTIVITIES:
Net earnings including noncontrolling
interests
$
2,852.7
$
2,905.4
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
1,191.0
1,073.8
Deferred income taxes, net
16.6
(30.2
)
Income earned from equity method
investees
(201.5
)
(182.7
)
Distributions received from equity method
investees
220.5
146.6
Gain on sale of assets
—
(91.3
)
Stock-based compensation
236.6
228.5
Non-cash lease costs
1,082.6
998.4
Loss on retirement and impairment of
assets
62.9
79.1
Other
20.2
22.8
Cash provided by/(used in) changes in
operating assets and liabilities:
Accounts receivable
44.7
44.3
Inventories
(53.4
)
194.5
Income taxes payable
(50.7
)
48.0
Accounts payable
61.7
47.3
Deferred revenue
51.6
(8.2
)
Operating lease liability
(1,049.7
)
(1,056.1
)
Other operating assets and liabilities
74.2
(356.5
)
Net cash provided by operating
activities
4,560.0
4,063.7
INVESTING ACTIVITIES:
Purchases of investments
(545.6
)
(357.1
)
Sales of investments
0.5
2.0
Maturities and calls of investments
731.8
515.0
Additions to property, plant and
equipment
(1,979.3
)
(1,634.1
)
Proceeds from sale of assets
—
110.0
Other
(56.9
)
(42.0
)
Net cash used in investing activities
(1,849.5
)
(1,406.2
)
FINANCING ACTIVITIES:
Net (payments)/proceeds from issuance of
commercial paper
—
(175.0
)
Net proceeds from issuance of short-term
debt
118.3
83.7
Repayments of short-term debt
(127.0
)
(46.7
)
Net proceeds from issuance of long-term
debt
1,995.3
1,497.8
Repayments of long-term debt
(1,825.1
)
(1,000.0
)
Proceeds from issuance of common stock
79.2
149.4
Cash dividends paid
(1,939.0
)
(1,824.8
)
Repurchase of common stock
(1,266.7
)
(699.3
)
Minimum tax withholdings on share-based
awards
(98.1
)
(87.0
)
Other
(10.6
)
(11.0
)
Net cash used in financing activities
(3,073.7
)
(2,112.9
)
Effect of exchange rate changes on cash
and cash equivalents
(9.2
)
(6.0
)
Net increase/(decrease) in cash and cash
equivalents
(372.4
)
538.6
CASH AND CASH EQUIVALENTS:
Beginning of period
3,551.5
2,818.4
End of period
$
3,179.1
$
3,357.0
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest, net of capitalized interest
$
373.9
$
369.6
Income taxes
$
1,079.9
$
939.8
Supplemental
Information
The following supplemental information is provided for
historical and comparative purposes.
U.S. Supplemental Data
Quarter Ended
($ in millions)
Jun 30, 2024
Jul 2, 2023
Change (%)
Revenues
$6,366.8
$6,272.3
2%
Change in Comparable Store Sales (1)
(2)%
7%
Change in Transactions
(6)%
1%
Change in Ticket
4%
6%
Store Count
16,730
16,144
4%
(1)
Includes only Starbucks®
company-operated stores open 13 months or longer. Comparable store
sales exclude Siren Retail stores. Stores that are temporarily
closed or operating at reduced hours remain in comparable store
sales while stores identified for permanent closure have been
removed.
China Supplemental Data
Quarter Ended
($ in millions)
Jun 30, 2024
Jul 2, 2023
Change (%)
Revenues
$733.8
$821.9
(11)%
Change in Comparable Store Sales (1)
(14)%
46%
Change in Transactions
(7)%
48%
Change in Ticket
(7)%
(1)%
Store Count
7,306
6,480
13%
(1)
Includes only Starbucks®
company-operated stores open 13 months or longer. Comparable store
sales exclude the effects of fluctuations in foreign currency
exchange rates and Siren Retail stores. Stores that are temporarily
closed or operating at reduced hours remain in comparable store
sales while stores identified for permanent closure have been
removed.
Store Data
Net stores opened/(closed) and
transferred during the period
Quarter Ended
Three Quarters Ended
Stores open as of
Jun 30, 2024
Jul 2, 2023
Jun 30, 2024
Jul 2, 2023
Jun 30, 2024
Jul 2, 2023
North America:
Company-operated stores
113
105
312
236
10,940
10,452
Licensed stores
20
5
76
61
7,258
7,140
Total North America
133
110
388
297
18,198
17,592
International:
Company-operated stores
244
272
562
543
9,526
8,580
Licensed stores
149
206
489
671
11,753
11,050
Total International
393
478
1,051
1,214
21,279
19,630
Total Company
526
588
1,439
1,511
39,477
37,222
Non-GAAP Disclosure
In addition to the GAAP results provided in this release, the
company provides certain non-GAAP financial measures that are not
in accordance with, or alternatives for, generally accepted
accounting principles in the United States (GAAP). When provided to
investors, our non-GAAP financial measures of non-GAAP general and
administrative expenses (G&A), non-GAAP operating income,
non-GAAP operating income growth (loss), non-GAAP operating margin,
non-GAAP effective tax rate and non-GAAP earnings per share exclude
the below-listed items and their related tax impacts, as management
does not believe they contribute to a meaningful evaluation of the
company’s future operating performance or comparisons to the
company's past operating performance. The GAAP measures most
directly comparable to non-GAAP G&A, non-GAAP operating income,
non-GAAP operating income growth (loss), non-GAAP operating margin,
non-GAAP effective tax rate and non-GAAP earnings per share are
G&A, operating income, operating income growth (loss),
operating margin, effective tax rate and diluted net earnings per
share, respectively.
Non-GAAP
Exclusion
Rationale
Restructuring and impairment costs
Management excludes restructuring and
impairment costs for reasons discussed above. These expenses are
anticipated to be completed within a finite period of time.
The Company also presents constant currency information to
provide a framework for assessing how our underlying businesses
performed excluding the effect of foreign currency rate
fluctuations. To present the constant currency information, current
period results for entities reporting in currencies other than
United States dollars are converted into United States dollars
using the average monthly exchange rates from the comparative
period rather than the actual exchange rates in effect during the
respective periods, excluding related hedging activities. We
believe the presentation of results on a constant currency basis in
addition to GAAP results helps users better understand our
performance, because it excludes the effects of foreign currency
volatility that are not indicative of our underlying operating
results.
Non-GAAP G&A, non-GAAP operating income, non-GAAP operating
income growth (loss), non-GAAP operating margin, non-GAAP effective
tax rate, non-GAAP earnings per share and constant currency may
have limitations as analytical tools. These measures should not be
considered in isolation or as a substitute for analysis of the
company’s results as reported under GAAP. Other companies may
calculate these non-GAAP financial measures differently than the
company does, limiting the usefulness of those measures for
comparative purposes.
STARBUCKS CORPORATION
NET REVENUE CONSTANT CURRENCY
RECONCILIATION
(unaudited, in millions)
Quarter Ended
Consolidated
Revenue for the quarter ended Jul 2, 2023
as reported (GAAP)
$
9,168.3
Revenue for the quarter ended Jun 30, 2024
as reported (GAAP)
$
9,113.9
Change (%)
(0.6
)%
Constant Currency Impact (%)
1.2
%
Change in Constant Currency (%)
0.6
%
STARBUCKS CORPORATION
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES
(unaudited, in millions, except
per share data)
Quarter Ended
Consolidated
Jun 30, 2024
Jul 2, 2023
Change
Constant Currency
Impact
Change in Constant
Currency
Operating income, as reported (GAAP)
$
1,517.5
$
1,583.9
(4.2)%
Restructuring and impairment costs (1)
—
7.1
Non-GAAP operating income
$
1,517.5
$
1,591.0
(4.6)%
1.5%
(3.1)%
Operating margin, as reported (GAAP)
16.7
%
17.3
%
(60) bps
Restructuring and impairment costs (1)
—
0.1
Non-GAAP operating margin
16.7
%
17.4
%
(70) bps
— bps
(70) bps
Diluted net earnings per share, as
reported (GAAP)
$
0.93
$
0.99
(6.1)%
Restructuring and impairment costs (1)
—
0.01
Income tax effect on Non-GAAP adjustments
(2)
—
0.00
Non-GAAP EPS
$
0.93
$
1.00
(7.0)%
1.0%
(6.0)%
(1)
Represents costs associated with
our restructuring efforts.
(2)
Adjustments were determined based
on the nature of the underlying items and their relevant
jurisdictional tax rates.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730908595/en/
Starbucks Contact, Investor Relations: Tiffany Willis
investorrelations@starbucks.com
Starbucks Contact, Media: Emily Albright
press@starbucks.com
Starbucks (NASDAQ:SBUX)
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過去 株価チャート
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