Q1 Consolidated Net Revenues Up 8% to a Record
$9.4 Billion Q1 Comparable Store Sales Up 5% Globally; Up 5% in
North America; Up 7% in International Q1 GAAP EPS Up 22% to $0.90;
Non-GAAP EPS Up 20% to $0.90 as Reinvention Unlocks Continued
Efficiency Q1 Active U.S. Starbucks® Rewards Membership Reaches
34.3 Million, Up 13% Over Prior Year Q1 U.S. Card Loads Reaches a
Record $3.6 Billion; Ranking as #2 U.S. Brand in Holiday Gift Card
Activations
Starbucks Corporation (Nasdaq: SBUX) today reported financial
results for its 13-week fiscal first quarter ended December 31,
2023. 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.
Q1 Fiscal 2024
Highlights
- Global comparable store sales increased 5%, driven by a 3%
increase in comparable transactions and 2% increase in average
ticket
- North America and U.S. comparable store sales increased 5%,
driven by a 4% increase in average ticket and 1% increase in
comparable transactions
- International comparable store sales increased 7%, driven by a
11% increase in comparable transactions and 3% decline in average
ticket; China comparable store sales increased 10%, driven by a 21%
increase in comparable transactions and 9% decline in average
ticket
- The company opened 549 net new stores in Q1, ending the period
with 38,587 stores: 51% company-operated and 49% licensed
- At the end of Q1, stores in the U.S. and China comprised 61% of
the company’s global portfolio, with 16,466 and 6,975 stores in the
U.S. and China, respectively
- Consolidated net revenues up 8%, including on a constant
currency basis, to a record $9.4 billion
- GAAP operating margin expanded 140 basis points year-over-year
to 15.8%, primarily driven by sales leverage and in-store
operational efficiencies. This expansion was partially offset by
investments in store partner wages and benefits, as well as higher
general and administrative costs in support of Reinvention.
- Non-GAAP operating margin expanded 130 basis points to 15.8%
from 14.5% year-over-year, including on a constant currency
basis
- GAAP earnings per share of $0.90 grew 22% over prior year
- Non-GAAP earnings per share of $0.90 grew 20% over prior year,
including on a constant currency basis
- Starbucks Rewards loyalty program 90-day active members in the
U.S. increased to 34.3 million, up 13% year-over-year
“Our first quarter performance was strong on many measures. Of
note was the unwavering commitment of our most loyal customers, the
growth in rewards members, tender and spend per member,” commented
Laxman Narasimhan, chief executive officer. “Despite headwinds, our
brand is very strong, and that coupled with innovation and a
relentless focus on our green apron partners form long-term
differentiators, along with focused execution on Triple Shot
Reinvention, will drive balanced and attractive earnings growth,”
Narasimhan added.
“I am proud of the significant margin expansion and double-digit
earnings growth we delivered in our first quarter, as it
underscores our multiple paths to earnings growth,” commented
Rachel Ruggeri, chief financial officer. “We are executing on
several levers within those multiple paths to continue delivering
against our balanced growth model over the remainder of the year,”
Ruggeri added.
Q1 North America
Segment Results
Quarter Ended
($ in millions)
Dec 31, 2023
Jan 1, 2023
Change (%)
Change in Comparable Store Sales (1)
5%
10%
Change in Transactions
1%
1%
Change in Ticket
4%
9%
Store Count
17,931
17,381
3%
Revenues
$7,120.7
$6,551.3
9%
Operating Income
$1,520.8
$1,212.4
25%
Operating Margin
21.4%
18.5%
290 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 grew 9% over Q1 FY23
to $7.1 billion in Q1 FY24, primarily driven by a 5% increase in
comparable store sales, driven by a 4% increase in average ticket
and a 1% increase in comparable transactions, net new
company-operated store growth of 4% over the past 12 months, as
well as growth in our licensed store business.
Operating income increased to $1.5 billion in Q1 FY24 compared
to $1.2 billion in Q1 FY23. Operating margin of 21.4% expanded from
18.5% in the prior year, primarily driven by in-store operational
efficiencies and sales leverage. This expansion was partially
offset by investments in store partner wages and benefits in
support of Reinvention.
Q1 International
Segment Results
Quarter Ended
($ in millions)
Dec 31, 2023
Jan 1, 2023
Change (%)
Change in Comparable Store Sales (1)
7%
(13)%
Change in Transactions
11%
(12)%
Change in Ticket
(3)%
(1)%
Store Count
20,656
18,789
10%
Revenues
$1,846.3
$1,680.1
10%
Operating Income
$241.5
$240.4
0%
Operating Margin
13.1%
14.3%
(120) 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 grew 10% over Q1 FY23
to $1.8 billion in Q1 FY24, primarily driven by net new
company-operated store growth of 12% over the past 12 months and a
7% increase in comparable store sales, driven by an 11% increase in
comparable transactions and a 3% decline in average ticket. These
increases were partially offset by approximately 2% unfavorable
impact from foreign currency translation.
Operating income increased to $241.5 million in Q1 FY24 compared
to $240.4 million in Q1 FY23. Operating margin of 13.1% contracted
from 14.3% in the prior year, primarily driven by investments in
store partner wages and benefits, business mix shift and strategic
investments. This contraction was partially offset by sales
leverage.
Q1 Channel
Development Segment Results
Quarter Ended
($ in millions)
Dec 31, 2023
Jan 1, 2023
Change (%)
Revenues
$448.0
$478.2
(6)%
Operating Income
$209.7
$226.3
(7)%
Operating Margin
46.8%
47.3%
(50) bps
Net revenues for the Channel Development segment declined 6%
over Q1 FY23 to $448.0 million in Q1 FY24, primarily due to a
decline in revenue in the Global Coffee Alliance following the sale
of Seattle's Best Coffee brand in Q2 FY23 and a decrease in global
ready-to-drink revenue.
Operating income decreased to $209.7 million in Q1 FY24 compared
to $226.3 million in Q1 FY23. Operating margin of 46.8% contracted
from 47.3% in the prior year, primarily driven by product costs
related to the Global Coffee Alliance, partially offset by business
mix shift.
Fiscal 2024 Financial
Targets
The company will discuss fiscal year 2024 financial targets
during its Q1 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 Updates
- In November, the company hosted its Reinvention Update and
Holiday Launch in New York City. Laxman Narasimhan, chief executive
officer, and members of the Starbucks executive leadership team
announced their long-term growth strategy, Triple Shot Reinvention
with Two Pumps Plan.
- In November, the Board of Directors announced its intention to
establish a new Environmental, Partner, and Community Impact
Committee (the "Impact Committee") focused on the oversight of
stakeholder promises. The Impact Committee was formally established
in December.
- In December, the company celebrated nearly 1,000 partners
(employees) who graduated through the Starbucks College Achievement
Plan at Arizona State University, with over 12,000 graduates to
date.
- In December, the Board of Directors released an independent
assessment of the company's adherence to its stated commitment to
workers' freedom of association and collective bargaining rights.
The company also commissioned an independent Human Rights Impact
Assessment in accordance with the United Nations Guiding Principles
on Business and Human Rights, as a step toward making key
investments for partners, farmers, communities and the
environment.
- In January, the company announced that all company-operated and
participating licensed stores across the U.S. and Canada will
accept reusable cups for drive-thru, in café and mobile
orders.
- In January, Tata Starbucks Private Limited announced its
ambition of operating 1,000 stores in India by 2028. As part of the
long-term commitment to elevate the coffee experience in India,
Tata Starbucks will also open its second Starbucks Reserve® store
this year.
- In January, the company welcomed three new members to its Board
of Directors: Daniel Servitje, Chief Executive Officer, President,
and Chairman of Grupo Bimbo SAB de CV, Neal Mohan, Chief Executive
Officer of YouTube, and Mike Sievert, Chief Executive Officer,
President, and Director of T-Mobile US, Inc. These appointments
increased Starbucks Board of Directors from eight members to 11
members.
- In Q1 FY24, the company repurchased 12.8 million shares of
common stock valued at $1.3 billion; approximately 29.8 million
shares remain available for purchase under the current
authorization.
- The Board of Directors declared a cash dividend of $0.57 per
share, payable on February 23, 2024, to shareholders of record on
February 9, 2024. The company had 55 consecutive quarters of
dividend payouts with CAGR of approximately 20%.
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, March 1, 2024.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with more than 38,000 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;
- 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, energy, water, raw materials, or product ingredients;
- the impact of significant increases in logistics costs;
- 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;
- 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, 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 personal data protection
laws;
- our environmental, social and governance (“ESG”) efforts 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.
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
Dec 31,
Jan 1,
%
Dec 31,
Jan 1,
2023
2023
Change
2023
2023
As a % of total net
revenues
Net revenues:
Company-operated stores
$
7,755.2
$
7,083.5
9.5
%
82.3
%
81.3
%
Licensed stores
1,192.1
1,119.5
6.5
12.6
12.8
Other
478.0
510.9
(6.4
)
5.1
5.9
Total net revenues
9,425.3
8,713.9
8.2
100.0
100.0
Product and distribution costs
2,980.6
2,810.2
6.1
31.6
32.2
Store operating expenses
3,851.5
3,665.3
5.1
40.9
42.1
Other operating expenses
150.4
129.3
16.3
1.6
1.5
Depreciation and amortization expenses
365.3
327.1
11.7
3.9
3.8
General and administrative expenses
648.0
580.9
11.6
6.9
6.7
Restructuring and impairments
—
5.8
nm
—
0.1
Total operating expenses
7,995.8
7,518.6
6.3
84.8
86.3
Income from equity investees
55.9
57.8
(3.3
)
0.6
0.7
Operating income
1,485.4
1,253.1
18.5
15.8
14.4
Interest income and other, net
33.8
11.6
191.4
0.4
0.1
Interest expense
(140.1
)
(129.7
)
8.0
(1.5
)
(1.5
)
Earnings before income taxes
1,379.1
1,135.0
21.5
14.6
13.0
Income tax expense
354.7
279.8
26.8
3.8
3.2
Net earnings including noncontrolling
interests
1,024.4
855.2
19.8
10.9
9.8
Net earnings attributable to
noncontrolling interests
0.0
0.0
nm
0.0
0.0
Net earnings attributable to
Starbucks
$
1,024.4
$
855.2
19.8
10.9
%
9.8
%
Net earnings per common share -
diluted
$
0.90
$
0.74
21.6
%
Weighted avg. shares outstanding -
diluted
1,140.6
1,152.9
Cash dividends declared per share
$
0.57
$
0.53
Supplemental Ratios:
Store operating expenses as a % of
company-operated store revenues
49.7
%
51.7
%
Effective tax rate including
noncontrolling interests
25.7
%
24.6
%
Segment Results
(in millions)
North America
Dec 31,
Jan 1,
%
Dec 31,
Jan 1,
2023
2023
Change
2023
2023
Quarter
Ended
As a % of North America total
net revenues
Net revenues:
Company-operated stores
$
6,381.1
$
5,870.6
8.7
%
89.6
%
89.6
%
Licensed stores
737.9
680.0
8.5
10.4
10.4
Other
1.7
0.7
142.9
0.0
0.0
Total net revenues
7,120.7
6,551.3
8.7
100.0
100.0
Product and distribution costs
2,023.9
1,917.6
5.5
28.4
29.3
Store operating expenses
3,147.7
3,031.4
3.8
44.2
46.3
Other operating expenses
77.4
65.6
18.0
1.1
1.0
Depreciation and amortization expenses
250.4
216.9
15.4
3.5
3.3
General and administrative expenses
100.5
102.3
(1.8
)
1.4
1.6
Restructuring and impairments
—
5.1
nm
—
0.1
Total operating expenses
5,599.9
5,338.9
4.9
78.6
81.5
Operating income
$
1,520.8
$
1,212.4
25.4
%
21.4
%
18.5
%
Supplemental Ratio:
Store operating expenses as a % of
company-operated store revenues
49.3
%
51.6
%
International
Dec 31,
Jan 1,
%
Dec 31,
Jan 1,
2023
2023
Change
2023
2023
Quarter
Ended
As a % of International total
net revenues
Net revenues:
Company-operated stores
$
1,374.1
$
1,212.9
13.3
%
74.4
%
72.2
%
Licensed stores
454.2
439.5
3.3
24.6
26.2
Other
18.0
27.7
(35.0
)
1.0
1.6
Total net revenues
1,846.3
1,680.1
9.9
100.0
100.0
Product and distribution costs
666.5
593.6
12.3
36.1
35.3
Store operating expenses
703.8
633.9
11.0
38.1
37.7
Other operating expenses
60.1
50.7
18.5
3.3
3.0
Depreciation and amortization expenses
84.1
81.5
3.2
4.6
4.9
General and administrative expenses
90.5
80.5
12.4
4.9
4.8
Total operating expenses
1,605.0
1,440.2
11.4
86.9
85.7
Income from equity investees
0.2
0.5
(60.0
)
0.0
0.0
Operating income
$
241.5
$
240.4
0.5
%
13.1
%
14.3
%
Supplemental Ratio:
Store operating expenses as a % of
company-operated store revenues
51.2
%
52.3
%
Channel Development
Dec 31,
Jan 1,
%
Dec 31,
Jan 1,
2023
2023
Change
2023
2023
Quarter
Ended
As a % of Channel
Development total net revenues
Net revenues
$
448.0
$
478.2
(6.3
)%
Product and distribution costs
279.0
294.2
(5.2
)
62.3
%
61.5
%
Other operating expenses
12.8
13.0
(1.5
)
2.9
2.7
General and administrative expenses
2.2
2.0
10.0
0.5
0.4
Total operating expenses
294.0
309.2
(4.9
)
65.6
64.7
Income from equity investees
55.7
57.3
(2.8
)
12.4
12.0
Operating income
$
209.7
$
226.3
(7.3
)%
46.8
%
47.3
%
Corporate and Other
Dec 31,
Jan 1,
%
2023
2023
Change
Quarter
Ended
Net revenues
$
10.3
$
4.3
139.5
%
Product and distribution costs
11.2
4.8
133.3
Other operating expenses
0.1
—
nm
Depreciation and amortization expenses
30.8
28.7
7.3
General and administrative expenses
454.8
396.1
14.8
Restructuring and impairments
—
0.7
nm
Total operating expenses
496.9
430.3
15.5
Operating loss
$
(486.6
)
$
(426.0
)
14.2
%
STARBUCKS CORPORATION
CONSOLIDATED BALANCE
SHEETS
(unaudited, in millions, except
per share data)
Dec 31, 2023
Oct 1, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
3,000.4
$
3,551.5
Short-term investments
383.0
401.5
Accounts receivable, net
1,165.1
1,184.1
Inventories
1,646.3
1,806.4
Prepaid expenses and other current
assets
374.7
359.9
Total current assets
6,569.5
7,303.4
Long-term investments
239.8
247.4
Equity investments
401.0
439.9
Property, plant and equipment, net
7,611.7
7,387.1
Operating lease, right-of-use asset
8,638.6
8,412.6
Deferred income taxes, net
1,769.4
1,769.8
Other long-term assets
531.1
546.5
Other intangible assets
115.8
120.5
Goodwill
3,302.8
3,218.3
TOTAL ASSETS
$
29,179.7
$
29,445.5
LIABILITIES AND SHAREHOLDERS'
EQUITY/(DEFICIT)
Current liabilities:
Accounts payable
$
1,460.7
$
1,544.3
Accrued liabilities
2,326.9
2,145.1
Accrued payroll and benefits
648.5
828.3
Current portion of operating lease
liability
1,309.4
1,275.3
Stored value card liability and current
portion of deferred revenue
2,199.8
1,700.2
Short-term debt
349.5
33.5
Current portion of long-term debt
1,100.8
1,818.6
Total current liabilities
9,395.6
9,345.3
Long-term debt
13,564.8
13,547.6
Operating lease liability
8,139.0
7,924.8
Deferred revenue
6,129.0
6,101.8
Other long-term liabilities
560.2
513.8
Total liabilities
37,788.6
37,433.3
Shareholders’ deficit:
Common stock ($0.001 par value) —
authorized, 2,400.0 shares; issued and outstanding, 1,132.2 and
1,142.6 shares, respectively
1.1
1.1
Additional paid-in capital
38.2
38.1
Retained deficit
(8,097.5
)
(7,255.8
)
Accumulated other comprehensive
income/(loss)
(557.8
)
(778.2
)
Total shareholders’ deficit
(8,616.0
)
(7,994.8
)
Noncontrolling interests
7.1
7.0
Total deficit
(8,608.9
)
(7,987.8
)
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY/(DEFICIT)
$
29,179.7
$
29,445.5
STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited and in millions)
Quarter Ended
Dec 31, 2023
Jan 1, 2023
OPERATING ACTIVITIES:
Net earnings including noncontrolling
interests
$
1,024.4
$
855.2
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
384.4
342.5
Deferred income taxes, net
26.1
15.8
Income earned from equity method
investees
(59.0
)
(56.9
)
Distributions received from equity method
investees
105.2
45.7
Stock-based compensation
94.8
85.2
Non-cash lease costs
278.0
263.7
Loss on retirement and impairment of
assets
28.3
21.1
Other
17.8
6.7
Cash provided by/(used in) changes in
operating assets and liabilities:
Accounts receivable
42.3
42.0
Inventories
174.3
108.5
Income taxes payable
189.6
147.6
Accounts payable
(95.8
)
(117.3
)
Deferred revenue
508.5
461.0
Operating lease liability
(290.5
)
(281.4
)
Other operating assets and liabilities
(44.5
)
(346.2
)
Net cash provided by operating
activities
2,383.9
1,593.2
INVESTING ACTIVITIES:
Purchases of investments
(217.1
)
(10.5
)
Sales of investments
—
0.8
Maturities and calls of investments
253.5
253.3
Additions to property, plant and
equipment
(595.9
)
(516.8
)
Other
(9.3
)
(6.1
)
Net cash used in investing activities
(568.8
)
(279.3
)
FINANCING ACTIVITIES:
Net (payments)/proceeds from issuance of
commercial paper
300.0
(175.0
)
Net proceeds from issuance of short-term
debt
49.1
—
Repayments of short-term debt
(33.8
)
—
Repayments of long-term debt
(750.0
)
—
Proceeds from issuance of common stock
32.3
45.9
Cash dividends paid
(648.1
)
(608.3
)
Repurchase of common stock
(1,266.7
)
(191.4
)
Minimum tax withholdings on share-based
awards
(92.1
)
(79.0
)
Net cash used in financing activities
(2,409.3
)
(1,007.8
)
Effect of exchange rate changes on cash
and cash equivalents
43.1
62.0
Net increase/(decrease) in cash and cash
equivalents
(551.1
)
368.1
CASH AND CASH EQUIVALENTS:
Beginning of period
3,551.5
2,818.4
End of period
$
3,000.4
$
3,186.5
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest, net of capitalized interest
$
120.1
$
116.7
Income taxes
$
143.0
$
106.2
Supplemental
Information
The following supplemental information is provided for
historical and comparative purposes.
U.S. Supplemental
Data
Quarter Ended
($ in millions)
Dec 31, 2023
Jan 1, 2023
Change (%)
Revenues
$6,643.0
$6,110.2
9%
Change in Comparable Store Sales (1)
5%
10%
Change in Transactions
1%
1%
Change in Ticket
4%
9%
Store Count
16,466
15,952
3%
(1)
Includes only Starbucks® company-operated
stores open 13 months or longer. Comparable store sales exclude
Siren Retail stores. Stores that are temporarily closed or
operating at reduced hours remain in comparable store sales while
stores identified for permanent closure have been removed.
China
Supplemental Data
Quarter Ended
($ in millions)
Dec 31, 2023
Jan 1, 2023
Change (%)
Revenues
$735.0
$621.7
18%
Change in Comparable Store Sales (1)
10%
(29)%
Change in Transactions
21%
(28)%
Change in Ticket
(9)%
(1)%
Store Count
6,975
6,090
15%
(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
Stores open as of
Dec 31, 2023
Jan 1, 2023
Dec 31, 2023
Jan 1, 2023
North America:
Company-operated stores
87
40
10,715
10,256
Licensed stores
34
46
7,216
7,125
Total North America
121
86
17,931
17,381
International:
Company-operated stores
186
97
9,150
8,134
Licensed stores
242
276
11,506
10,655
Total International
428
373
20,656
18,789
Total Company
549
459
38,587
36,170
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. When provided, our
non-GAAP financial measures of non-GAAP general and administrative
expenses (G&A), non-GAAP operating income, non-GAAP operating
income growth, 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 they do not 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,
non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP
earnings per share are general and administrative expenses,
operating income, operating income growth, 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.
Transaction and integration-related
costs
Management excludes transaction and
integration costs for reasons discussed above. Additionally, we
incur certain costs associated with certain divestiture activities.
The majority of these costs will be recognized over 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, 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)
Consolidated
Revenue for the quarter ended Jan 1, 2023
as reported (GAAP)
$
8,713.9
Revenue for the quarter ended Dec 31, 2023
as reported (GAAP)
$
9,425.3
Change (%)
8.2
%
Constant Currency Impact (%)
0.3
%
Change in Constant Currency (%)
8.5
%
STARBUCKS CORPORATION
RECONCILIATION OF SELECTED
GAAP MEASURES TO NON-GAAP MEASURES
(unaudited, in millions except
per share data)
Quarter Ended (1)
Consolidated
Dec 31, 2023
Jan 1, 2023
Change
Constant Currency
Impact
Change in Constant
Currency
Operating income, as reported (GAAP)
$
1,485.4
$
1,253.1
18.5%
Restructuring and impairment costs (2)
—
5.8
Transaction and integration-related costs
(3)
—
0.3
Non-GAAP operating income
$
1,485.4
$
1,259.2
18.0%
0.4%
18.4%
Operating margin, as reported (GAAP)
15.8
%
14.4
%
140 bps
Restructuring and impairment costs (2)
—
0.1
Transaction and integration-related costs
(3)
—
0.0
Non-GAAP operating margin
15.8
%
14.5
%
130 bps
— bps
130 bps
Diluted net earnings per share, as
reported (GAAP)
$
0.90
$
0.74
21.6%
Restructuring and impairment costs (2)
—
0.01
Transaction and integration-related costs
(3)
—
0.00
Income tax effect on Non-GAAP adjustments
(4)
—
0.00
Non-GAAP EPS
$
0.90
$
0.75
20.0%
—%
20.0%
(1)
Certain numbers may not foot due to
rounding convention.
(2)
Represents costs associated with our
restructuring efforts.
(3)
The first quarter of fiscal 2023 includes
transaction-related expenses related to the sale of our Seattle's
Best Coffee brand.
(4)
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/20240130642464/en/
Starbucks Contact, Investor Relations: Tiffany Willis
investorrelations@starbucks.com
Starbucks Contact, Media: Emily Albright
press@starbucks.com
Starbucks (NASDAQ:SBUX)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Starbucks (NASDAQ:SBUX)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024