Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

Starbucks Reports Q1 Fiscal 2024 Results


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

"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

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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:

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.

 


These press releases may also interest you

at 11:00
VERSES AI Inc. (CBOE Canada: VERS) ("VERSES" or the "Company"), is pleased to announce a non-brokered private placement of special warrants ("Special Warrants") for gross proceeds of up to C$10,000,000 through the sale of 10,000,000 Units at a price...

at 10:50
Minera IRL Limited ("Minera" or, the "Company") (BVL:MIRL) is providing this default status report in accordance with National Policy 12-203 ? Management Cease Trade Orders ("NP 12-203") and the terms of a Management Cease Trade Order ("MCTO")...

at 10:50
The Bellwether District has once again deepened its commitment to building sustainable communities with a $100,000 grant to Bartram's Garden to support its Southwest Philadelphia Tree Program. This grant marks the beginning of a two-year partnership...

at 10:45
Following a hearing held on July 11, 12, September 21, 22, 29 and November 3, 2023, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) under the Mutual Fund Dealer Rules found that Alvinder Singh Gill: a)  misappropriated or...

at 10:38
Spirit Airlines today celebrated the official opening of Spirit Central, its new corporate campus at Dania Pointe in Dania Beach, Florida. The campus spans more than 11 acres and features four buildings, including a support center with offices, an...

at 10:37
Pvolve, the fitness franchise that pairs low-impact, functional movement with resistance equipment to build strong, mobile bodies, announced the largest franchise deal in the company's history. The agreement is for five studio locations across...



News published on and distributed by: