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Press release from Business Wire

Starbucks Reports Record Second Quarter Fiscal 2013 Results

<p class='bwalignc'> Continued Strong Comparable Store Sales Growth of 7% in the US and 6% Globally </p> <p class='bwalignc'> Revenues Increase 11% to a Q2 Record $3.6 Billion; Operating Income Rises 26% </p> <p class='bwalignc'> Record Q2 EPS of $0.51 Includes $0.03 Non-Routine Gain </p> <p class='bwalignc'> Company Raises Full Year EPS Target </p>

Thursday, April 25, 2013

Starbucks Reports Record Second Quarter Fiscal 2013 Results

16:05 EDT Thursday, April 25, 2013

SEATTLE (Business Wire) -- Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal second quarter and 26-week fiscal year to date ended March 31, 2013.

Fiscal Second Quarter 2013 Highlights:

  • Total net revenues increased 11% to $3.6 billion
  • Global comparable store sales grew 6%, driven by a 4% increase in traffic and a 2% increase in average ticket, marking the 13th consecutive quarter of global comp growth greater than 5%
  • Operating margin expanded 180 basis points to a Q2 record 15.3%
  • Consolidated operating income grew 26% to $544 million
  • Record Q2 EPS of $0.51 per share included a $0.03 non-routine gain on the sale of the company's equity in the joint venture that operates Starbucks stores in Mexico; excluding this gain, EPS grew 20%
  • Dollars loaded on Starbucks Cards through both new card activations and reloads increased 32% over Q2 FY12
  • Starbucks added 590 net new stores globally, including 337 Teavana stores
  • The company has raised its full year earnings per share target range to $2.12 to $2.18 from the previous target range of $2.06 to $2.15

"Starbucks record operating performance in Q2 continues to demonstrate the underlying strength and resilience of our expanding global business, and the increasing relevance of the Starbucks brand to consumers all around the world,” said Howard Schultz, chairman, president and chief executive officer. “Innovation and an enhanced customer experience drove strong comp sales and revenue growth, while a laser focus on improving efficiency and controlling costs enabled us to deliver record margins and earnings. Starbucks has never been better positioned to achieve the aspirational goal we have set of becoming one of the world's most respected, admired and enduring brands.”

“Record second quarter results once again illustrate the power of the Starbucks business and brand,” commented Troy Alstead, chief financial officer. “Continued strength in our US operations, despite ongoing uncertainty in the macro environment, has fueled our performance and allows us to pursue long term strategic initiatives across our segments. Given our performance in the first half of the year and the considerable momentum in the business as we enter the second-half, we are raising our full year earnings growth target.”

 

Second Quarter Fiscal 2013 Summary

       
Quarter Ended Mar 31, 2013
Comparable Store Sales (1)       Sales Growth     Change in Transactions     Change in Ticket
Consolidated 6%     4%     2%
Americas 6% 5% 2%
EMEA (2)% (1)% 0%
CAP       8%     4%     3%
(1) Includes only Starbucks company-operated stores open 13 months or longer.
 
       
Operating Results Quarter Ended
($ in millions, except per share amounts)       Mar 31, 2013     Apr 1, 2012     Change
Net New Stores(1) 590 176 414
Revenues $3,555.9 $3,195.9 11%
Operating Income $544.1 $430.4 26%
Operating Margin 15.3% 13.5% 180 bps
EPS       $0.51     $0.40     28%
(1) Includes 337 Teavana stores added in the second quarter of fiscal 2013.
 

Consolidated net revenues reached a Q2 record $3.6 billion in Q2 FY13, an increase of 11% over Q2 FY12. The increase was due to a 6% increase in global comparable store sales and incremental revenues from the opening of 1,448 net new stores over the past 12 months, including the addition of 337 Teavana stores.

Consolidated operating income increased 26% to a Q2 record $544.1 million, compared to $430.4 million for the same period a year ago. Operating margin expanded 180 basis points to 15.3% this quarter, compared to 13.5% in Q2 FY12. The margin increase was primarily driven by sales leverage and lower coffee costs.

             

Q2 Americas Segment Results

             
Quarter Ended
($ in millions)       Mar 31, 2013     Apr 1, 2012     Change
Net New Stores(1) 95 72 23
Revenues $2,604.1 $2,374.7 10%
Operating Income $549.7 $449.5 22%
Operating Margin       21.1%     18.9%     220 bps
(1) Americas store data has been adjusted to exclude Seattle's Best Coffee, Evolution Fresh and Tazo Retail, which are now reported within All Other Segments.
 

Net revenues for the Americas segment were $2.6 billion in Q2 FY13, an increase of 10% over Q2 FY12. The increase was primarily due to a 6% increase in comparable store sales, comprised of a 5% increase in the number of transactions and a 2% increase in average ticket. Also contributing to the net revenue increase was incremental revenues from 522 net new store openings over the past 12 months.

Operating income increased to $549.7 million in Q2 FY13, representing growth of 22% compared to $449.5 million for the same period a year ago. Operating margin expanded 220 basis points to 21.1% in Q2 FY13 driven by sales leverage and lower coffee costs.

             

Q2 EMEA Segment Results

             
Quarter Ended
($ in millions)       Mar 31, 2013     Apr 1, 2012     Change
Net New Stores 22 17 5
Revenues $273.2 $272.4 0%
Operating Income $5.2 ($7.0) nm
Operating Margin       1.9%     (2.6)%     450 bps
 

Net revenues for the EMEA segment were $273.2 million in Q2 FY13, flat to Q2 FY12. Revenue growth of 48% in licensed stores, driven by the opening of 117 net new stores in the last 12 months, was offset by a decline in company-operated revenue primarily driven by prior store portfolio optimization activities.

Operating income of $5.2 million in Q2 FY13 grew $12.2 million from an operating loss of $7.0 million in Q2 FY12. Operating margin increased 450 basis points to 1.9%. Margin expansion was primarily driven by a continued focus on cost management and a shift in our store portfolio to more licensed stores. Also contributing to the margin expansion was a reduction to the estimated asset retirement obligations of our store leases in the region.

             

Q2 China/Asia Pacific Segment Results

             
Quarter Ended
($ in millions)       Mar 31, 2013     Apr 1, 2012     Change
Net New Stores 147 83 64
Revenues $213.6 $174.6 22%
Operating Income $68.3 $68.2 0%
Operating Margin       32.0%     39.1%     (710) bps
 

Net revenues for the China/Asia Pacific segment were $213.6 million in Q2 FY13, an increase of 22% over Q2 FY12. The increase was primarily due to incremental revenues from 516 net new store openings over the past 12 months and an 8% increase in comparable store sales.

Operating income of $68.3 million in Q2 FY13 was flat to the prior-year quarter. Operating margin decreased 710 basis points to 32.0% this quarter compared to 39.1% in Q2 FY12. The margin contraction was primarily due to investment spending to support continued growth in China and a shift in the composition of our store portfolio from licensed to company-operated stores. Also contributing to the margin contraction was the absence this year of non-routine income included in income from equity investees in the prior year.

             

Q2 Channel Development Segment Results

             
Quarter Ended
($ in millions)       Mar 31, 2013     Apr 1, 2012     Change
Revenues $343.5 $321.5 7%
Operating Income $94.1 $79.5 18%
Operating Margin       27.4%     24.7%     270 bps
 

Channel Development net revenues were $343.5 million in Q2 FY13, an increase of 7% over Q2 FY12, primarily driven by sales of Starbucks- and Tazo-branded K-Cup® packs.

Operating income grew 18% to $94.1 million in Q2 FY13 compared to $79.5 million for the same period a year ago. Operating margin increased 270 basis points to 27.4% in Q2 FY13 compared to 24.7% in the prior-year period. The margin expansion was primarily due to lower coffee costs.

Segment Reporting Update

Beginning in Q2 FY13, we removed unallocated corporate expenses from Other. Other is now referred to as All Other Segments and includes Teavana, Seattle's Best Coffee, Evolution Fresh, Tazo Retail and Digital Ventures. Unallocated corporate operating expenses, which pertain primarily to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment, are now a reconciling item between total segment operating results and consolidated financial results. While our consolidated results are not impacted, our historical segment financial information has been revised to be consistent with the current period presentation. A historical recast of results can be found on the Investor Relations page on Starbucks.com.

             

Q2 All Other Segments Results

             
Quarter Ended
($ in millions)       Mar 31, 2013     Apr 1, 2012     Change
Net New Stores 326 4 322
Revenues $121.5 $52.7 131%
Operating loss       ($4.1)     ($6.7)     (39)%
 

Net revenues for All Other Segments were $121.5 million in Q2 FY13, an increase of 131% over Q2 FY12, primarily driven by the addition of Teavana retail store sales in the current quarter.

Operating loss was $4.1 million in Q2 FY13 compared to a loss of $6.7 million for the same period a year ago. The $2.6 million improvement was primarily driven by the acquisition of Teavana in Q2 FY13.

     

Year to Date Financial Results

 

Two Quarters Ended Mar 31, 2013
Comparable Store Sales (1)       Sales Growth     Change in Transactions     Change in Ticket
Consolidated 6%     4%     2%
Americas 6% 4% 2%
EMEA (1)% 0% (2)%
CAP       9%     6%     3%
(1) Includes only Starbucks company-operated stores open 13 months or longer.
 
       
Operating Results Two Quarters Ended
($ in millions, except per share amounts)       Mar 31, 2013     Apr 1, 2012     Change
Net New Stores(1) 802 417 385
Revenues $7,355.4 $6,631.8 11%
Operating Income $1,174.6 $986.4 19%
Operating Margin 16.0% 14.9% 110 bps
EPS       $1.08     $0.90     20%
(1) Includes 337 Teavana stores added in the second quarter of fiscal 2013.
 

Fiscal 2013 Targets

Starbucks reaffirms the following fiscal 2013 targets:

  • Revenue growth of approximately 10% - 13%
  • Mid single digit global comparable store sales growth
  • Full-year consolidated operating margin improvement of approximately 100 basis points over FY12 results
  • Capital expenditures of approximately $1.2 billion for the full year

Starbucks has updated the following fiscal 2013 targets:

  • The company plans to open approximately 1,650 net new stores globally, reiterating the previous target of 1,300 Starbucks stores and including 350 Teavana stores acquired and to be opened in the year
  • Starbucks has raised its full year earnings per share target to a range of $2.12 - $2.18 consisting of $0.50 - $0.53 in Q3 and $0.54 - $0.57 in Q4

Company Updates

  • Starbucks was recognized by Fortune magazine as the fifth “Most Admired Company” in the world and Ethisphere Magazine named Starbucks one of the World's Most Ethical Companies for the seventh year in a row.
  • The company opened its first store in Vietnam on January 31, an iconic flagship location in Ho Chi Minh City.
  • Starbucks® coffee K-cup® packs were recognized as the most successful CPG beverage product of 2012 by Information Resources, Inc. (IRI), a leading market research company.
  • As part of the ongoing evaluation of appropriate ownership structures in international markets, Starbucks sold its 18% equity in Mexico to long time trusted business partner, Alsea, S.A.B. de C.V.
  • Starbucks announced the expansion of its loyalty and rewards program with an industry-first innovation that will enable customers to earn rewards for grocery channel purchases that can be redeemed in Starbucks retail stores.
  • The company expanded its comprehensive ethical sourcing program with a new research and development center in Costa Rica; the 240-hectare farm will be converted into a global agronomy center and is part of Starbucks commitment to ethically sourcing 100 percent of its coffee by 2015.
  • Starbucks announced the appointment of two new members to its senior leadership team; Sharon Rothstein was named global chief marketing officer and Matthew Ryan will serve as global chief strategy officer.
  • The Board of Directors declared a cash dividend of $0.21 per share, payable on May 24, 2013, to shareholders of record as of May 9, 2013.
  • The company repurchased approximately 3 million shares of common stock in Q2 FY13; approximately 26 million shares remain available for purchase under previous authorizations.

Conference Call

Starbucks will be holding a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Howard Schultz, chairman, president and ceo, Troy Alstead, cfo and Cliff Burrows, president, Americas. The call will be webcast and can be accessed at http://investor.starbucks.com. A replay of the webcast will be available through approximately 5:00 p.m. Pacific Time on Friday, May 24, 2013. A replay of the call will also be available via telephone through 9:00 p.m. Pacific Time on Saturday, April 27, 2013 by calling 1-855-859-2056, reservation number 36849786.

The company's consolidated statements of earnings, operating segment results, and other additional information have been provided on the following pages in accordance with current year classifications. This information should be reviewed in conjunction with this press release. Please refer to the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2012 for additional information.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with stores around the globe, 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 www.starbucks.com.

Forward-Looking Statements

This release contains forward-looking statements relating to certain company initiatives, strategies and plans, as well as trends in or expectations regarding our diversified business model, the strength, health and potential of our business and brand, business momentum, growth and growth opportunities, earnings per share, revenues, operating margins, profits, capital expenditures, comparable store sales and store openings and closings. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results may differ materially depending on a variety of factors including, but not limited to, coffee, dairy and other raw material prices and availability, costs associated with, and the successful execution of, the company's initiatives, strategies and plans, the acceptance of the company's products by our customers, fluctuations in U.S. and international economies and currencies, the impact of competition, the effect of legal proceedings, and other risks detailed in the company filings with the Securities and Exchange Commission, including the “Risk Factors” section of Starbucks Annual Report on Form 10-K for the fiscal year ended September 30, 2012. The company assumes no obligation to update any of these forward-looking statements.

 

STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited, in millions, except per share data)
         

Quarter Ended

Quarter Ended

Mar 31,

   

Apr 1,

   

%

Mar 31,

   

Apr 1,

Fiscal Year Ended

2013

   

2012

   

Change

2013

   

2012

As a % of total

net revenues

Net revenues:
Company-operated stores $ 2,807.7 $ 2,521.2 11.4 % 79.0 % 78.9 %
Licensed stores 322.1 290.3 11.0 9.1 9.1
CPG, foodservice and other   426.1     384.4   10.8 12.0   12.0  
Total net revenues 3,555.9 3,195.9 11.3 100.0 100.0
Cost of sales including occupancy costs 1,530.4 1,411.9 8.4 43.0 44.2
Store operating expenses 1,038.4 956.5 8.6 29.2 29.9
Other operating expenses 112.1 105.3 6.5 3.2 3.3
Depreciation and amortization expenses 153.1 137.1 11.7 4.3 4.3
General and administrative expenses   230.3     206.9   11.3 6.5   6.5  
Total Operating Expenses 3,064.3 2,817.7 8.8 86.2 88.2
Income from equity investees   52.5     52.2   0.6 1.5   1.6  
Operating income 544.1 430.4 26.4 15.3 13.5
Interest income and other, net 50.8 35.3 43.9 1.4 1.1
Interest expense   (6.1 )   (8.8 ) (30.7 ) (0.2 ) (0.3 )
Earnings before income taxes 588.8 456.9 28.9 16.6 14.3
Income taxes   198.1     146.8   34.9 5.6   4.6  
Net earnings including noncontrolling interest 390.7 310.1 26.0 11.0 9.7
Net earnings attributable to noncontrolling interest   0.3     0.2   50.0    
Net earnings attributable to Starbucks $ 390.4   $ 309.9   26.0 % 11.0 % 9.7 %
 
Net earnings per common share - diluted $ 0.51   $ 0.40   27.5 %
Weighted avg. shares outstanding - diluted 761.3 773.3
 
Cash dividends declared per share $ 0.21 $ 0.17
 
Supplemental Ratios:
Store operating expenses as a percentage of company-operated stores revenue 37.0 % 37.9 %
Effective tax rate including noncontrolling interest 33.6 % 32.1 %
 

STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited, in millions, except per share data)
         

Two Quarters Ended

Two Quarters Ended

Mar 31,

   

Apr 1,

   

%

Mar 31,

   

Apr 1,

Fiscal Year Ended

2013

   

2012

   

Change

2013

   

2012

As a % of total
net revenues
Net revenues:
Company-operated stores $ 5,797.3 $ 5,253.0 10.4 % 78.8 % 79.2 %
Licensed stores 672.2 596.9 12.6 9.1 9.0
CPG, foodservice and other   885.9     781.9   13.3 12.0   11.8  
Total net revenues 7,355.4 6,631.8 10.9 100.0 100.0
Cost of sales including occupancy costs 3,151.1 2,908.0 8.4 42.8 43.8
Store operating expenses 2,127.9 1,952.2 9.0 28.9 29.4
Other operating expenses 244.6 212 15.4 3.3 3.2
Depreciation and amortization expenses 302.0 271.9 11.1 4.1 4.1
General and administrative expenses   462.2     398.4   16.0 6.3   6.0  
Total Operating Expenses 6,287.8 5,742.5 9.5 85.5 86.6
Income from equity investees   107.0     97.1   10.2 1.5   1.5  
Operating income 1,174.6 986.4 19.1 16.0 14.9
Interest income and other, net 48.0 58.5 (17.9 ) 0.7 0.9
Interest expense   (12.7 )   (17.4 ) (27.0 ) (0.2 ) (0.3 )
Earnings before income taxes 1,209.9 1,027.5 17.8 16.4 15.5
Income taxes   386.8     335.2   15.4 5.3   5.1  
Net earnings including noncontrolling interest 823.1 692.3 18.9 11.2 10.4
Net earnings attributable to noncontrolling interest   0.6     0.4   50.0    
Net earnings attributable to Starbucks $ 822.5   $ 691.9   18.9 % 11.2 % 10.4 %
 
Net earnings per common share - diluted $ 1.08   $ 0.90   20.0 %
Weighted avg. shares outstanding - diluted 761.3 770.9
 
Cash dividends declared per share $ 0.42 $ 0.34
 
Supplemental Ratios:
Store operating expenses as a percentage of company-operated stores revenue 36.7 % 37.2 %
Effective tax rate including noncontrolling interest 32.0 % 32.6 %
 

Segment Results

The tables below present reportable segment results net of intersegment eliminations (in millions):

Americas

                     

 

                     

Mar 31,

Apr 1,

%

Mar 31,

Apr 1,

2013

   

2012

   

Change

2013

   

2012

As a % of Americas

Quarter Ended

total net revenues
Net revenues:
Company-operated stores $ 2,376.2 $ 2,170.2 9.5 % 91.2 % 91.4 %
Licensed stores 216.7 198.9 8.9 8.3 8.4
CPG, foodservice and other   11.2   5.6 100.0 0.4   0.2  
Total net revenues 2,604.1 2,374.7 9.7 100.0 100.0
Cost of sales including occupancy costs 1,000.0 941.6 6.2 38.4 39.7
Store operating expenses 891.9 837.4 6.5 34.2 35.3
Other operating expenses 21.2 18.7 13.4 0.8 0.8
Depreciation and amortization expenses 105.6 97.2 8.6 4.1 4.1
General and administrative expenses   38.1   32.4 17.6 1.5   1.4  
Total Operating Expenses 2,056.8 1,927.3 6.7 79.0 81.2
Income from equity investees   2.4   2.1 14.3 0.1   0.1  
Operating income $ 549.7 $ 449.5 22.3 % 21.1 % 18.9 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated stores revenue 37.5 % 38.6 %
 

Two Quarters Ended

Net revenues:
Company-operated stores $ 4,962.6 $ 4,526.3 9.6 % 91.1 % 91.4 %
Licensed stores 455.8 415.3 9.8 8.4 8.4
CPG, foodservice and other   26.3   11.6 126.7 0.5   0.2  
Total net revenues 5,444.7 4,953.2 9.9 100.0 100.0
Cost of sales including occupancy costs 2,092.5 1,948.3 7.4 38.4 39.3
Store operating expenses 1,851.7 1,712.2 8.1 34.0 34.6
Other operating expenses 51.2 39.2 30.6 0.9 0.8
Depreciation and amortization expenses 211.0 194.3 8.6 3.9 3.9
General and administrative expenses   100.9   63.0 60.2 1.9   1.3  
Total Operating Expenses 4,307.3 3,957.0 8.9 79.1 79.9
Income from equity investees   2.4   2.1 14.3    
Operating income $ 1,139.8 $ 998.3 14.2 % 20.9 % 20.2 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated stores revenue 37.3 % 37.8 %
 

EMEA

                     
                     
Mar 31, Apr 1, % Mar 31, Apr 1,
2013     2012     Change 2013     2012
As a % of EMEA

Quarter Ended

total net revenues
Net revenues:
Company-operated stores $ 219.0 $ 233.5 (6.2 )% 80.2 % 85.7 %
Licensed stores 45.9 31.1 47.6 16.8 11.4
CPG, foodservice and other   8.3   7.8   6.4 3.0   2.9  
Total net revenues 273.2 272.4 0.3 100.0 100.0
Cost of sales including occupancy costs 140.8 143.9 (2.2 ) 51.5 52.8
Store operating expenses 83.2 91.9 (9.5 ) 30.5 33.7
Other operating expenses 10.7 8.9 20.2 3.9 3.3
Depreciation and amortization expenses 13.7 14.3 (4.2 ) 5.0 5.2
General and administrative expenses   19.6   20.4   (3.9 ) 7.2   7.5  
Total Operating Expenses 268.0 279.4 (4.1 ) 98.1 102.6
Income from equity investees          

Operating income/(loss)

$ 5.2 $ (7.0 ) nm 1.9 % (2.6 )%
Supplemental Ratios:
Store operating expenses as a percentage of company-operated stores revenue 38.0 % 39.4 %
 

Two Quarters Ended

Net revenues:
Company-operated stores $ 471.7 $ 497.9 (5.3 )% 81.4 % 86.5 %
Licensed stores 89.8 62.4 43.9 15.5 10.8
CPG, foodservice and other   17.8   15.3   16.3 3.1   2.7  
Total net revenues 579.3 575.6 0.6 100.0 100.0
Cost of sales including occupancy costs 293.3 294.4 (0.4 ) 50.6 51.1
Store operating expenses 173.5 185.7 (6.6 ) 29.9 32.3
Other operating expenses 19.1 17.6 8.5 3.3 3.1
Depreciation and amortization expenses 27.9 28.5 (2.1 ) 4.8 5.0
General and administrative expenses   38.0   37.8   0.5 6.6   6.6  
Total Operating Expenses 551.8 564.0 (2.2 ) 95.3 98.0
Income from equity investees     0.3   (100.0 )   0.1  
Operating income $ 27.5 $ 11.9   131.1 % 4.7 % 2.1 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated stores revenue 36.8 % 37.3 %
 

China / Asia Pacific (CAP)

                     
                     
Mar 31, Apr 1, % Mar 31, Apr 1,
2013     2012     Change 2013     2012
As a % of CAP

Quarter Ended

total net revenues
Net revenues:
Company-operated stores $ 156.5 $ 117.5 33.2 % 73.3 % 67.3 %
Licensed stores   57.1   57.1 26.7   32.7  
Total net revenues 213.6 174.6 22.3 100.0 100.0
Cost of sales including occupancy costs 104.9 86.8 20.9 49.1 49.7
Store operating expenses 40.3 27.2 48.2 18.9 15.6
Other operating expenses 11.5 9.7 18.6 5.4 5.6
Depreciation and amortization expenses 8.5 5.6 51.8 4.0 3.2
General and administrative expenses   10.9   10.0 9.0 5.1   5.7  
Total Operating Expenses 176.1 139.3 26.4 82.4 79.8
Income from equity investees   30.8   32.9 (6.4 ) 14.4   18.8  
Operating income $ 68.3 $ 68.2 0.1 % 32.0 % 39.1 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated stores revenue 25.8 % 23.1 %
 

Two Quarters Ended

Net revenues:
Company-operated stores $ 307.0 $ 228.8 34.2 % 71.8 % 67.0 %
Licensed stores   120.7   112.7 7.1 28.2   33.0  
Total net revenues 427.7 341.5 25.2 100.0 100.0
Cost of sales including occupancy costs 211.4 171.2 23.5 49.4 50.1
Store operating expenses 79.7 54.3 46.8 18.6 15.9
Other operating expenses 21.7 21.1 2.8 5.1 6.2
Depreciation and amortization expenses 15.9 10.6 50.0 3.7 3.1
General and administrative expenses   23.5   19.2 22.4 5.5   5.6  
Total Operating Expenses 352.2 276.4 27.4 82.3 80.9
Income from equity investees   64.9   60.5 7.3 15.2   17.7  
Operating income $ 140.4 $ 125.6 11.8 % 32.8 % 36.8 %
Supplemental Ratios:
Store operating expenses as a percentage of company-operated stores revenue 26.0 % 23.7 %
 

Channel Development

                     
                     
Mar 31, Apr 1, % Mar 31, Apr 1,
2013     2012     Change 2013     2012
As a % of
Channel Development

Quarter Ended

total net revenues
Net revenues:
CPG $ 254.6 $ 237.4 7.2 % 74.1 % 73.8 %
Foodservice   88.9   84.1 5.7 25.9   26.2  
Total net revenues 343.5 321.5 6.8 100.0 100.0
Cost of sales 212.6 204.7 3.9 61.9 63.7
Other operating expenses 49.3 49.3 14.4

 

15.3
Depreciation and amortization expenses 0.3 0.3 0.1 0.1
General and administrative expenses   6.5   4.9 32.7 1.9   1.5  
Total Operating Expenses 268.7 259.2 3.7 78.2 80.6
Income from equity investees   19.3   17.2 12.2 5.6   5.3  
Operating income $ 94.1 $ 79.5 18.4 % 27.4 % 24.7 %
 

Two Quarters Ended

Net revenues:
CPG $ 542.9 $ 484.5 12.1 % 75.0 % 73.7 %
Foodservice   180.5   172.8 4.5 25.0   26.3  
Total net revenues 723.4 657.3 10.1 100.0 100.0
Cost of sales 447.8 425.3 5.3 61.9 64.7
Other operating expenses 112.4 99.5 13.0 15.5 15.1
Depreciation and amortization expenses 0.6 0.7 (14.3 ) 0.1 0.1
General and administrative expenses   11.3   8.7 29.9 1.6   1.3  
Total Operating Expenses 572.1 534.2 7.1 79.1 81.3
Income from equity investees   39.7   34.2 16.1 5.5   5.2  
Operating income $ 191.0 $ 157.3 21.4 % 26.4 % 23.9 %
 

All Other Segments

             
             
Mar 31, Apr 1,

%

2013     2012    

Change

Quarter Ended

Net revenues:
Company-operated stores $ 56.0 $ 100.0 %
Licensed stores 2.4 3.2 (25.0 )
CPG, foodservice and other   63.1     49.5   27.5
Total net revenues 121.5 52.7 130.6
Cost of sales including occupancy costs 69.7 34.4 102.6
Store operating expenses 23.0 100.0
Other operating expenses 19.4 18.7 3.7
Depreciation and amortization expenses 3.4 0.6 466.7
General and administrative expenses   10.1     5.7   77.2
Total Operating Expenses   125.6     59.4   111.4
Operating loss $ (4.1 ) $ (6.7 ) (38.8 )%
 

Two Quarters Ended

Net revenues:
Company-operated stores $ 56.0 $ 100.0 %
Licensed stores 5.9 6.5 (9.2 )
CPG, foodservice and other   118.4     97.7   21.2
Total net revenues 180.3 104.2 73.0
Cost of sales including occupancy costs 106.0 68.3 55.2
Store operating expenses 23.0 100.0
Other operating expenses 40.2 34.6 16.2
Depreciation and amortization expenses 4.3 1.0 330.0
General and administrative expenses   15.0     9.8   53.1
Total Operating Expenses   188.5     113.7   65.8
Operating loss $ (8.2 ) $ (9.5 ) (13.7 )%
 

Supplemental Information

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

Fiscal Second Quarter 2013 U.S. Supplemental Data

                   
Quarter Ended    
($ in millions)       Mar 31, 2013     Apr 1, 2012     Change
Comparable Store Sales Growth 7%     8%
Change in Transactions 5% 7%
Change in Ticket 2% 1%
Revenues $2,312.9 $2,115.1 9%
Operating Income $543.2 $434.3 25%
Operating Margin       23.5%     20.5%     300 bps
 

Fiscal Second Quarter 2013 Store Data

The company's store data for the periods presented are as follows:

     

Net stores opened (closed) during the

       

period

       
Quarter Ended     Two Quarters Ended Stores open as of
Mar 31,     Apr 1, Mar 31,     Apr 1, Mar 31, Apr 1,
2013 2012 2013 2012 2013 2012
Americas:
Company-operated(1) 25 22 52 34 7,895 7,643
Licensed stores(1) 70   50   130   134 5,100 4,830
95   72   182   168 12,995 12,473
EMEA:
Company-operated(2) (4 ) (3 ) (24 ) 5 858 877
Licensed stores(2) 26   20   53   37 1,040 923
22   17   29   42 1,898 1,800
CAP:
Company-operated 66 28 113 63 779 575
Licensed stores 81   55   159   141 2,787 2,475
147 83 272 204 3,566 3,050
All Other Segments:
Company-operated 306 3 309 2 323 16
Licensed stores 20   1   10   1 86 81
326 4 319 3 409 97
 
Total 590   176  

802

 

417

18,868 17,420
 

(1) Americas store data has been adjusted to exclude Seattle's Best Coffee, Evolution Fresh and Tazo Retail, which are now reported within All Other Segments.

(2) EMEA store data has been adjusted for the transfer of certain company-operated stores to licensees in the fourth quarter of fiscal 2012.

© 2013 Starbucks Coffee Company. All rights reserved.

Starbucks Corporation
Investor Relations:
JoAnn DeGrande / Greg Smith, 206-318-7118
investorrelations@starbucks.com
or
Media:
Jim Olson, 206-318-7100
press@starbucks.com

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