Starbucks Delivers Record Quarterly Results

SEATTLE–(hospitalitybusinessnews.com)– Starbucks Corporation today reported financial results for its 13-week fiscal third quarter and 39-week fiscal year to date ended June 28, 2015. Q3 FY15 GAAP results include Starbucks Japan acquisition-related items, which are excluded from the non-GAAP results.

Q3 Fiscal 2015 Highlights:

  • Global comparable store sales increased 7%, driven by a 4% increase in traffic
    • Americas comp sales increased 8%, driven by a 4% increase in traffic
    • China/Asia Pacific comp sales increased 11%, driven by a 10% increase in traffic
    • EMEA comp sales increased 3%, driven by a 2% increase in traffic
  • Consolidated net revenues increased 18% over Q3 FY14 to a quarterly record $4.9 billion
  • Consolidated operating income up 22% to $938.6 million
    • Non-GAAP operating income up 24% to $950.1 million
  • Consolidated operating margin expanded 70 basis points to 19.2%
    • Non-GAAP operating margin increased 100 basis points to 19.5%
  • GAAP earnings increased 21% over Q3 FY14 to $0.41 per share
    • Non-GAAP earnings increased 24% over Q3 FY14 to $0.42 per share
  • Starbucks Mobile Order & Pay expanded to over 4,000 U.S. company-operated stores in Q3; full deployment to all U.S. company-operated stores by holiday
  • 431 net new stores opened in the quarter; total store count reaches 22,519
  • Year over year comparable store customer transactions increased nearly 18 million in the U.S. and over 23 million globally

“Starbucks Q3 fiscal 2015 stands as among the strongest and most remarkable quarters in our over 23 years as a public company,” said Howard Schultz, chairman and ceo. “The 4% increase in global transactions we reported equates to our having served an additional 23 million customer occasions in Q3 of this year over last year, clearly evidencing a continuation of the strong momentum we have seen across our business and around the world this fiscal year,” Schultz added.

“Starbucks very strong year over year financial performance in Q3 demonstrates our commitment to delivering best in class financial and operating results while at the same time investing in our future growth – building new stores, renovating existing stores, deploying new technology – investing in our partners and delivering an elevated Starbucks Experience to our customers,” said Scott Maw, Starbucks cfo. “We believe that by getting this balance right, we will be able to continue delivering exceptional growth, profitability and increased returns to our shareholders,” Maw added.

Third Quarter Fiscal 2015 Summary

Quarter Ended Jun 28, 2015

Comparable Store Sales(1)

Sales Growth

Change in Transactions

Change in Ticket

Consolidated 7% 4% 3%
Americas 8% 4% 4%
EMEA 3% 2% 1%
CAP 11% 10% 1%

(1) Includes only Starbucks company-operated stores open 13 months or longer.

Operating Results

Quarter Ended

($ in millions, except per share amounts)

Jun 28, 2015 Jun 29, 2014 Change
Net New Stores 431 344 87
Revenues $4,881.2 $4,153.7 18%
Operating Income $938.6 $768.5 22%
Operating Margin 19.2% 18.5% 70 bps
EPS $0.41 $0.34 21%

Consolidated net revenues were $4.9 billion in Q3 FY15, an increase of 18% over Q3 FY14. The increase was primarily driven by incremental revenues from the acquisition of Starbucks Japan, a 7% increase in global comparable store sales and the opening of 1,592 net new stores over the past 12 months.

Consolidated operating income grew 22% to $938.6 million in Q3 FY15, up from $768.5 million in Q3 FY14. Consolidated operating margin expanded 70 basis points to 19.2% primarily driven by sales leverage. This was partially offset by the impact of our ownership change in Starbucks Japan, which drove 90 basis points of margin decline, and by investments in our store partners (employees) in the Americas segment.

Q3 Americas Segment Results

Quarter Ended

($ in millions)

Jun 28, 2015

Jun 29, 2014

Change

Net New Stores 171 149 22
Revenues $3,414.6 $3,057.7 12%
Operating Income $855.3 $728.5 17%
Operating Margin 25.0% 23.8% 120 bps

Net revenues for the Americas segment were $3.4 billion in Q3 FY15, an increase of 12% over Q3 FY14. The increase was driven by 8% growth in comparable store sales and incremental revenues from 658 net new store openings over the past 12 months.

Operating income of $855.3 million in Q3 FY15 increased 17% from $728.5 million in Q3 FY14. Operating margin expanded 120 basis points to 25.0% primarily due to sales leverage and lower commodity costs, primarily dairy, and was partially offset by investments in our store partners (employees).

Q3 EMEA Segment Results

Quarter Ended

($ in millions)

Jun 28, 2015 Jun 29, 2014 Change
Net New Stores 58 37 21
Revenues $294.7 $323.5 (9)%
Operating Income $36.0 $29.2 23%
Operating Margin 12.2% 9.0% 320 bps

Net revenues for the EMEA segment were $294.7 million in Q3 FY15, a 9% decrease versus Q3 FY14. The decrease was primarily driven by unfavorable foreign currency translation and the shift in the portfolio towards more licensed stores. Partially offsetting the decrease was a 3% increase in comparable store sales.

Operating income increased 23% to $36.0 million in Q3 FY15, up from $29.2 million in Q3 FY14. Operating margin expanded 320 basis points to 12.2%, primarily due to sales leverage driven by the ongoing shift in the portfolio towards more licensed stores.

Q3 China/Asia Pacific Segment Results

Quarter Ended

($ in millions)

Jun 28, 2015 Jun 29, 2014 Change
Net New Stores 205 160 45
Revenues $652.7 $287.6 127%
Operating Income $150.0 $100.8 49%
Operating Margin 23.0% 35.0% (1,200) bps

Net revenues for the China/Asia Pacific segment grew 127% to $652.7 million in Q3 FY15. The increase was primarily driven by incremental revenues from the acquisition of Starbucks Japan. Also contributing were incremental revenues from 750 net new store openings over the past 12 months and an 11% increase in comparable store sales.

Operating income grew 49% to $150.0 million in Q3 FY15. Operating margin declined 1,200 basis points to 23.0% due to the impact of our ownership change in Starbucks Japan, which drove a 1,570 basis point decline. The remaining 370 basis point expansion was primarily driven by sales leverage as well as improved profitability in our company-operated stores in the region.

Q3 Channel Development Segment Results

Quarter Ended
($ in millions)

Jun 28, 2015

Jun 29, 2014 Change
Revenues $403.6 $375.3 8%
Operating Income $143.4 $139.3 3%
Operating Margin 35.5% 37.1% (160) bps

Net revenues for the Channel Development segment grew 8% to $403.6 million in Q3 FY15, primarily driven by increased sales of premium single-serve products and higher foodservice sales.

Operating income of $143.4 million in Q3 FY15 grew 3% compared to Q3 FY14. Operating margin decreased 160 basis points to 35.5%, primarily driven by increased marketing spend and increased coffee costs. The decrease was partially offset by leverage on cost of sales and increased income from our North American Coffee Partnership.

Q3 All Other Segments Results

Quarter Ended

($ in millions)

Jun 28, 2015

Jun 29, 2014

Change

Net New Stores (3) (2) (1)
Revenues $115.6 $109.6 5%
Operating Loss $(13.1) $(18.9) (31)%

Year to Date Financial Results

Three Quarters Ended Jun 28, 2015

Comparable Store Sales(1)

Sales Growth

Change in Transactions Change in Ticket
Consolidated 7% 3% 4%
Americas 7% 3% 4%
EMEA 3% 2% 1%
CAP 10% 9% 1%

(1) Includes only Starbucks company-operated stores open 13 months or longer.

Operating Results

Three Quarters Ended
($ in millions, except per share amounts) Jun 28, 2015 Jun 29, 2014 Change

Net New Stores (1)

1,153 1,096 57
Revenues $14,247.9 $12,267.1 16%
Operating Income $2,631.6 $2,226.3 18%
Operating Margin 18.5% 18.1% 40 bps
EPS $1.39 $0.97 43%

(1) Net new stores include the closure of 132 Target Canada licensed stores in the second quarter of fiscal 2015.

Fiscal 2015 Targets

Starbucks is providing the following fiscal 2015 targets. Projected Q4 FY15 non-GAAP adjustments relate to the acquisition of Starbucks Japan and the redemption of debt; please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release.

The Company Provides the Following Targets:

  • Total net new store openings for the fiscal year remain at 1,650:
    • Americas: remain at approximately 600, half licensed
    • EMEA: remain at approximately 200, primarily licensed
    • China/Asia Pacific: remain at approximately 850, two-thirds licensed
  • Continue to expect full year revenue growth of 16% to 18%
  • Global comparable store sales growth remains in the mid-single digits
  • Full year GAAP operating margin is still expected to be flat to FY14 due to the impact of the acquisition of Starbucks Japan; full year non-GAAP operating margin is still expected to modestly improve over prior year non-GAAP operating margin. Operating margin by segment:
    • Americas: continue to expect modest margin improvement over FY14
    • EMEA: now expecting margin to be at or slightly above the upper end of the 10% to 12% range
    • China/Asia Pacific: now expecting margin to be slightly over 20%
    • Channel Development: continue to expect margin improvement of approximately 150 basis points over FY14
  • Continue to expect a consolidated tax rate of approximately 31% on a GAAP basis
  • GAAP Earnings per Share:
    • Now expect full year EPS in the range of $1.77 to $1.78
    • Now expect Q4 EPS in the range of $0.38 to $0.39
  • Non-GAAP Earnings per Share:
    • Now expect full year EPS in the range of $1.57 to $1.58
    • Continue to expect Q4 EPS in the range of $0.42 to $0.43
  • The Company now expects capital expenditures of approximately $1.3 billion

Company Updates

  • Starbucks and PepsiCo, Inc. today announced they have entered into an agreement for the marketing, sales and distribution of a locally-relevant portfolio of Starbucks ready-to-drink (RTD) coffee and energy products in Latin America.
  • Enhancing the digital experience for My Starbucks Rewards® members, the company has recently made three strategic relationship announcements, starting with Spotify in May, The New York Times on July 21 and Lyft on July 22. Each of the announcements supports a new opportunity for Starbucks loyalty program members to earn stars through purchases made with other companies and then have the ability to redeem those earned stars for food and beverages at participating Starbucks® stores. These relationships, collectively, lend to a broader strategy to build a robust digital ecosystem with businesses that complement our customer experience.
  • The Company recently announced two new strategic business partnerships; the first is a licensed agreement with Casino Restauration (a subsidiary of Groupe Casino) that will open Starbucks stores within Géant Casino Hypermarkets and Casino Supermarkets across France. The second is a licensed partnership with Taste Holdings to open Starbucks stores across South Africa, starting with Johannesburg which is expected to open in 2016. This will be Starbucks first store in sub-Saharan Africa.
  • In May, Starbucks opened a store in Japan’s Tottori Prefecture, the last district in Japan without a Starbucks store. The company operates more than 1,000 stores across the country.
  • Starbucks, along with more than a dozen leading, U.S.-based companies, announced on July 13 the formation of the 100,000 Opportunities Initiative, an employer-led coalition with a collective goal of engaging 100,000 Opportunity Youth – 16 to 24 year olds who face systemic barriers to jobs and education – through apprenticeships, internships, training programs, and both part-time and full-time jobs.
  • In June, Starbucks raised $850 million in proceeds from a public offering of $500 million of 2.700% Senior Notes due 2022 and $350 million of 4.300% Senior Notes due 2045. As previously announced, a portion of the proceeds from the offering were used to redeem the Company’s $550 million of 6.250% Senior Notes due 2017. The redemption was settled July 1, 2015.
  • The Company repurchased 12.1 million shares of common stock in Q3 FY15; 61 million shares remain available for purchase under current authorizations, comprised of 11 million shares that remained available for repurchase as of June 28, 2015 under an existing authorization and an additional 50 million shares which the Company announced today has been authorized for repurchase by its Board of Directors under its ongoing share repurchase program.
  • The Board of Directors declared a cash dividend of $0.16 per share, payable on August 21, 2015 to shareholders of record as of August 6, 2015.

 

STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited, in millions, except per share data)

Quarter Ended Quarter Ended

Jun 28,
2015

Jun 29,
2014

%
Change

Jun 28,
2015
Jun 29,
2014

As a % of total
net revenues

Net revenues:
Company-operated stores $ 3,915.0 $ 3,290.5 19.0 % 80.2 % 79.2 %
Licensed stores 475.2 408.1 16.4 9.7 9.8
CPG, foodservice and other 491.0 455.1 7.9 10.1 11.0

Total net revenues

4,881.2 4,153.7 17.5 100.0 100.0
Cost of sales including occupancy costs 1,953.9 1,711.5 14.2 40.0 41.2
Store operating expenses 1,392.4 1,176.5 18.4 28.5 28.3
Other operating expenses 131.6 120.6 9.1 2.7 2.9
Depreciation and amortization expenses 236.5 180.1 31.3 4.8 4.3
General and administrative expenses 288.5 269.4 7.1 5.9 6.5

Total operating expenses

4,002.9 3,458.1 15.8 82.0 83.3
Income from equity investees 60.3 72.9 (17.3 ) 1.2 1.8

Operating income

938.6 768.5 22.1 19.2 18.5
Interest income and other, net 25.5 19.4 31.4 0.5 0.5
Interest expense (19.1 ) (16.4 ) 16.5 (0.4 ) (0.4 )
Earnings before income taxes 945.0 771.5 22.5 19.4 18.6
Income taxes 318.5 259.0 23.0 6.5 6.2
Net earnings including noncontrolling interests 626.5 512.5 22.2 12.8 12.3

Net earnings/(loss) attributable to noncontrolling interests

(0.2 ) (0.1 ) 100.0

Net earnings attributable to Starbucks

$ 626.7 $ 512.6 22.3 12.8 % 12.3 %

Net earnings per common share – diluted

$ 0.41 $ 0.34 20.6 %
Weighted avg. shares outstanding – diluted 1,515.7 1,522.0
Cash dividends declared per share $ 0.16 $ 0.13

Supplemental Ratios:

Store operating expenses as a percentage of company-operated store revenues 35.6 % 35.8 %
Effective tax rate including noncontrolling interests 33.7 % 33.6 %
Three Quarters Ended Three Quarters Ended

Jun 28,
2015

Jun 29,
2014

%
Change

Jun 28,
2015

Jun 29,
2014

As a % of total
net revenues

Net revenues:
Company-operated stores $ 11,310.7 $ 9,702.3 16.6 % 79.4 % 79.1 %
Licensed stores 1,380.5 1,166.1 18.4 9.7 9.5
CPG, foodservice and other 1,556.7 1,398.7 11.3 10.9 11.4
Total net revenues 14,247.9 12,267.1 16.1 100.0 100.0
Cost of sales including occupancy costs 5,804.9 5,135.7 13.0 40.7 41.9
Store operating expenses 4,032.5 3,486.1 15.7 28.3 28.4
Other operating expenses 394.5 346.3 13.9 2.8 2.8
Depreciation and amortization expenses 659.6 524.2 25.8 4.6 4.3
General and administrative expenses 892.8 752.6 18.6 6.3 6.1
Litigation credit (20.2 ) (100.0 ) (0.2 )
Total operating expenses 11,784.3 10,224.7 15.3 82.7 83.4
Income from equity investees 168.0 183.9 (8.6 ) 1.2 1.5

Operating income

2,631.6 2,226.3 18.2 18.5 18.1
Gain resulting from acquisition of joint venture 390.6

nm

2.7
Interest income and other, net 36.6 57.0 (35.8 ) 0.3 0.5
Interest expense (52.3 ) (47.7 ) 9.6 (0.4 ) (0.4 )
Earnings before income taxes 3,006.5 2,235.6 34.5 21.1 18.2
Income taxes 899.7 755.4 19.1 6.3 6.2
Net earnings including noncontrolling interests 2,106.8 1,480.2 42.3 14.8 12.1
Net earnings/(loss) attributable to noncontrolling interests 1.9 (0.1 ) nm

Net earnings attributable to Starbucks

$ 2,104.9 $ 1,480.3 42.2 % 14.8 % 12.1 %

Net earnings per common share – diluted

$ 1.39 $ 0.97 43.3 %
Weighted avg. shares outstanding – diluted 1,516.3 1,527.8
Cash dividends declared per share $ 0.48 $ 0.39

Supplemental Ratios:

Store operating expenses as a percentage of company-operated store revenues 35.7 % 35.9 %
Effective tax rate including noncontrolling interests 29.9 % 33.8 %

Segment Results (in millions)

Americas

Jun 28,
2015

Jun 29,
2014

%
Change

Jun 28,
2015

Jun 29,
2014

Quarter Ended

As a % of Americas

total net revenues

Net revenues:
Company-operated stores $ 3,061.3 $ 2,772.3 10.4 % 89.7 % 90.7 %
Licensed stores 344.9 275.6 25.1 10.1 9.0
Foodservice and other 8.4 9.8 (14.3 ) 0.2 0.3
Total net revenues 3,414.6 3,057.7 11.7 100.0 100.0
Cost of sales including occupancy costs 1,227.7 1,130.0 8.6 36.0 37.0
Store operating expenses 1,126.7 1,002.4 12.4 33.0 32.8
Other operating expenses 26.9 26.2 2.7 0.8 0.9
Depreciation and amortization expenses 130.8 119.5 9.5 3.8 3.9
General and administrative expenses 47.2 51.1 (7.6 ) 1.4 1.7
Total operating expenses 2,559.3 2,329.2 9.9 75.0 76.2
Operating income $ 855.3 $ 728.5 17.4 % 25.0 % 23.8 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store revenues 36.8 % 36.2 %

Three Quarters Ended

Net revenues:
Company-operated stores $ 8,890.5 $ 8,120.6 9.5 % 89.7 % 90.8 %
Licensed stores 993.0 787.6 26.1 10.0 8.8
Foodservice and other 26.0 31.2 (16.7 ) 0.3 0.3
Total net revenues 9,909.5 8,939.4 10.9 100.0 100.0
Cost of sales including occupancy costs 3,624.4 3,353.8 8.1 36.6 37.5
Store operating expenses 3,276.1 2,965.9 10.5 33.1 33.2
Other operating expenses 93.4 75.2 24.2 0.9 0.8
Depreciation and amortization expenses 386.5 346.6 11.5 3.9 3.9
General and administrative expenses 146.6 131.9 11.1 1.5 1.5
Total operating expenses 7,527.0 6,873.4 9.5 76.0 76.9
Operating income $ 2,382.5 $ 2,066.0 15.3 % 24.0 % 23.1 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store revenues 36.8 % 36.5 %

EMEA

Jun 28,
2015
Jun 29,
2014

%
Change

Jun 28,
2015

Jun 29,
2014

Quarter Ended

As a % of EMEA
total net revenues

Net revenues:
Company-operated stores $ 217.8 $ 251.8 (13.5 )% 73.9 % 77.8 %
Licensed stores 65.5 60.8 7.7 22.2 18.8
Foodservice 11.4 10.9 4.6 3.9 3.4
Total net revenues 294.7 323.5 (8.9 ) 100.0 100.0
Cost of sales including occupancy costs 143.1 161.4 (11.3 ) 48.6 49.9
Store operating expenses 78.4 91.4 (14.2 ) 26.6 28.3
Other operating expenses 12.9 12.5 3.2 4.4 3.9
Depreciation and amortization expenses 12.4 15.1 (17.9 ) 4.2 4.7
General and administrative expenses 12.8 15.0 (14.7 ) 4.3 4.6
Total operating expenses 259.6 295.4 (12.1 ) 88.1 91.3
Income from equity investees 0.9 1.1 (18.2 ) 0.3 0.3
Operating income $ 36.0 $ 29.2 23.3 % 12.2 % 9.0 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store revenues 36.0 % 36.3 %

Three Quarters Ended

Net revenues:
Company-operated stores $ 688.0 $ 766.3 (10.2 )% 75.7 % 78.8 %
Licensed stores 185.4 175.8 5.5 20.4 18.1
Foodservice 35.0 30.9 13.3 3.9 3.2
Total net revenues 908.4 973.0 (6.6 ) 100.0 100.0
Cost of sales including occupancy costs 434.4 487.9 (11.0 ) 47.8 50.1
Store operating expenses 240.4 280.1 (14.2 ) 26.5 28.8
Other operating expenses 40.0 35.9 11.4 4.4 3.7
Depreciation and amortization expenses 38.9 44.5 (12.6 ) 4.3 4.6
General and administrative expenses 41.6 47.1 (11.7 ) 4.6 4.8
Total operating expenses 795.3 895.5 (11.2 ) 87.5 92.0
Income from equity investees 2.1 3.0 (30.0 ) 0.2 0.3
Operating income $ 115.2 $ 80.5 43.1 % 12.7 % 8.3 %

Supplemental Ratios:

Store operating expenses as a percentage of company-operated store revenues 34.9 % 36.6 %

China/Asia Pacific (CAP)

Jun 28,
2015
Jun 29,
2014

%
Change

Jun 28,
2015
Jun 29,
2014

Quarter Ended

As a % of CAP
total net revenues

Net revenues:
Company-operated stores $ 588.4 $ 217.0 171.2 % 90.1 % 75.5 %
Licensed stores 63.1 70.6 (10.6 ) 9.7 24.5
Foodservice and other 1.2 nm 0.2
Total net revenues 652.7 287.6 126.9 100.0 100.0
Cost of sales including occupancy costs 281.8 137.8 104.5 43.2 47.9
Store operating expenses 161.2 54.8 194.2 24.7 19.1
Other operating expenses 15.8 13.2 19.7 2.4 4.6
Depreciation and amortization expenses 41.2 11.3 264.6 6.3 3.9
General and administrative expenses 30.3 16.0 89.4 4.6 5.6
Total operating expenses 530.3 233.1 127.5 81.2 81.1
Income from equity investees 27.6 46.3 (40.4 ) 4.2 16.1
Operating income $ 150.0 $ 100.8 48.8 % 23.0 % 35.0 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store revenues 27.4 % 25.3 %

Three Quarters Ended

Net revenues:
Company-operated stores $ 1,542.5 $ 621.1 148.3 % 88.5 % 75.8 %
Licensed stores 197.6 198.7 (0.6 )% 11.3 24.2
Foodservice and other 3.5 nm 0.2
Total net revenues 1,743.6 819.8 112.7 100.0 100.0
Cost of sales including occupancy costs 784.8 398.0 97.2 45.0 48.5
Store operating expenses 436.0 158.5 175.1 25.0 19.3
Other operating expenses 43.4 34.8 24.7 2.5 4.2
Depreciation and amortization expenses 106.3 33.4 218.3 6.1 4.1
General and administrative expenses 88.4 43.1 105.1 5.1 5.3
Total operating expenses 1,458.9 667.8 118.5 83.7 81.5
Income from equity investees 85.8 116.8 (26.5 ) 4.9 14.2
Operating income $ 370.5 $ 268.8 37.8 % 21.2 % 32.8 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store revenues 28.3 % 25.5 %

Channel Development

Jun 28,
2015
Jun 29,
2014

%
Change

Jun 28,
2015
Jun 29,
2014

Quarter Ended

As a % of
Channel Development
total net revenues

Net revenues:
CPG $ 302.2 $ 286.6 5.4 % 74.9 % 76.4 %
Foodservice 101.4 88.7 14.3 25.1 23.6
Total net revenues 403.6 375.3 7.5 100.0 100.0
Cost of sales 228.3 208.3 9.6 56.6 55.5
Other operating expenses 58.9 48.3 21.9 14.6 12.9
Depreciation and amortization expenses 0.7 0.4 75.0 0.2 0.1
General and administrative expenses 4.1 4.5 (8.9 ) 1.0 1.2
Total operating expenses 292.0 261.5 11.7 72.3 69.7
Income from equity investees 31.8 25.5 24.7 7.9 6.8
Operating income $ 143.4 $ 139.3 2.9 % 35.5 % 37.1 %

Three Quarters Ended

Net revenues:
CPG $ 975.8 $ 875.1 11.5 % 76.6 % 76.3 %
Foodservice 298.4 271.7 9.8 23.4 23.7
Total net revenues 1,274.2 1,146.8 11.1 100.0 100.0
Cost of sales 722.2 667.5 8.2 56.7 58.2
Other operating expenses 160.9 142.9 12.6 12.6 12.5
Depreciation and amortization expenses 2.0 1.2 66.7 0.2 0.1
General and administrative expenses 12.5 13.8 (9.4 ) 1.0 1.2
Total operating expenses 897.6 825.4 8.7 70.4 72.0
Income from equity investees 80.1 64.1 25.0 6.3 5.6
Operating income $ 456.7 $ 385.5 18.5 % 35.8 % 33.6 %

All Other Segments

Jun 28,
2015
Jun 29,
2014

%
Change

Quarter Ended

Net revenues:
Company-operated stores $ 47.5 $ 49.4 (3.8 )%
Licensed stores 1.7 1.1 54.5
CPG, foodservice and other 66.4 59.1 12.4
Total net revenues 115.6 109.6 5.5
Cost of sales including occupancy costs 72.7 65.9 10.3
Store operating expenses 26.1 27.9 (6.5 )
Other operating expenses 17.3 20.5 (15.6 )
Depreciation and amortization expenses 4.3 3.9 10.3
General and administrative expenses 8.3 10.3 (19.4 )
Total operating expenses 128.7 128.5 0.2
Operating loss $ (13.1 ) $ (18.9 ) (30.7 )%

Three Quarters Ended

Net revenues:
Company-operated stores $ 189.7 $ 194.3 (2.4 )%
Licensed stores 4.5 4.0 12.5
CPG, foodservice and other 218.0 189.8 14.9
Total net revenues 412.2 388.1 6.2
Cost of sales including occupancy costs 242.5 217.2 11.6
Store operating expenses 80.0 81.6 (2.0 )
Other operating expenses 57.1 58.1 (1.7 )
Depreciation and amortization expenses 12.2 11.3 8.0
General and administrative expenses 27.2 32.9 (17.3 )
Total operating expenses 419.0 401.1 4.5
Operating loss $ (6.8 ) $ (13.0 ) (47.7 )%

Supplemental Information

The following supplemental information is provided for historical and comparative purposes.

U.S. Supplemental Data

Quarter Ended

($ in millions)

Jun 28, 2015 Jun 29, 2014 Change
Revenues $3,091.0 $2,731.2 13%
Comparable Store Sales Growth(1) 8% 7%
Change in Transactions 4% 2%
Change in Ticket 4% 5%

(1) Includes only Starbucks company-operated stores open 13 months or longer

Store Data:

Net stores opened (closed) and transferred during the period

Quarter Ended Three Quarters Ended Stores open as of

Jun 28,
2015

Jun 29,
2014

Jun 28,
2015

Jun 29,
2014

Jun 28,
2015

Jun 29,
2014

Americas(1)
Company-operated stores 68 69 187 155 8,582 8,233
Licensed stores 103 80 192 264 5,988 5,679
Total Americas 171 149 379 419 14,570 13,912
EMEA(2)
Company-operated stores (9 ) (3 ) (33 ) 1 784 827
Licensed stores 67 40 184 132 1,507 1,275
Total EMEA 58 37 151 133 2,291 2,102
China/Asia Pacific (3,4)
Company-operated stores 82 45 1,219 159 2,351 1,041
Licensed stores 123 115 (604 ) 384 2,888 3,384
Total China/Asia Pacific 205 160 615 543 5,239 4,425
All Other Segments
Company-operated stores (1 ) 10 9 21 378 378
Licensed stores (2 ) (12 ) (1 ) (20 ) 41 46
Total All Other Segments (3 ) (2 ) 8 1 419 424
Total Company 431 344 1,153 1,096 22,519 20,863

(1) Americas store data includes the closure of 132 Target Canada licensed stores in the second quarter of fiscal 2015.

(2) EMEA store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the second and fourth quarters of fiscal 2014.

(3) China/Asia Pacific store data includes the transfer of 1,009 Japan stores from licensed stores to company-operated as a result of the acquisition of Starbucks Japan in the first quarter of fiscal 2015.

(4) China/Asia Pacific store data has been adjusted for the transfer of certain company-operated stores to licensed stores in the fourth quarter of fiscal 2014.

 

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