Starbucks Reports Record First Quarter Fiscal 2013 Results

Thu Jan 24, 2013 4:05pm EST

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Strong Comparable Store Sales Growth of 7% in US and Americas and 6% Globally 

Robust Holiday Contributes to an 11% Increase in Revenues to a Record $3.8
Billion 

EPS Rises 14% to a Record $0.57 

Company Reaffirms FY13 Growth Targets 
SEATTLE--(Business Wire)--
Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its
13-week fiscal first quarter ended December 30, 2012. 

Fiscal First Quarter 2013 Highlights:

* Total net revenues increased 11% to a record $3.8 billion 
* Global comparable store sales grew 6%, driven by a 4% increase in traffic and
a 2% increase in average ticket

* Americas comparable store sales grew 7%, China/Asia Pacific comparable store
sales grew 11%

* Consolidated operating margin expanded 40 basis points to 16.6% 
* EPS increased 14% to a record $0.57 per share, compared to $0.50 per share in
Q1 FY12 
* Opened 212 net new stores globally, including the first 3 stores in India 
* Sold more than 150,000 Verismo machines since launch, marking a strong debut
of this emerging platform 
* Added 1.4 million new My Starbucks Rewards members in the U.S., up 86% over
the 778,000 new members added in the U.S. in Q1 FY12

* Acquired Teavana Holdings, Inc. on December 31, making Teavana a wholly-owned
subsidiary of Starbucks and positioning Starbucks to become the global leader in
tea

"Starbucks strong performance in Q1 demonstrates the strength, and unique
resilience, of our increasingly global business, and the power and growing
relevance of the Starbucks brand to consumers and communities all around the
world," said Howard Schultz, chairman, president and chief executive officer,
Starbucks Coffee Company. "Solid growth in our U.S. retail business, further
expansion of our Channel Development initiatives and continued successful
execution against our expansion plans throughout China and Asia Pacific all
contributed to the record results we announced today. Starbucks has never been
better positioned to achieve the goals we have set for ourselves around the
world and I have never been more optimistic about our future." 

"Record earnings in the first quarter continued our strong momentum, reflecting
the underlying strength in our core business," commented Troy Alstead, chief
financial officer. "We delivered excellent holiday results with 6% global comps,
marking the 12th consecutive quarter of comps in excess of 5%. Our first quarter
results demonstrate both efficiency, with record US productivity, and
innovation, with the successful launch of Verismo, our newest growth platform." 

Added Alstead, "Despite significant and unexpected cost pressures in the
quarter, we achieved our earnings growth target and delivered record EPS.
Starbucks strong Q1 performance reaffirms our confidence in the aggressive FY13
growth targets we announced in early November. The quality and diversity of
growth drivers in the business, combined with our continued focus on operational
excellence, gives us confidence in sustainable, strong profitable growth."

 First Quarter Fiscal 2013 Summary                                                                                                
                                                                                                                                  
                                                  Quarter Ended Dec 30, 2012                                                      
 Comparable Store Sales(1)                        Sales Growth              Change in Transactions              Change in Ticket  
 Consolidated                                     6%                        4%                                  2%                
 Americas                                         7%                        4%                                  2%                
 EMEA                                             (1)%                      2%                                  (3)%              
 CAP                                              11%                       8%                                  3%                
 (1) Includes only Starbucks company-operated stores open 13 months or longer.                                                    
                                                                                                                                  
                                                                                                                                  
 Operating Results                                Quarter Ended                                                                   
 ($ in millions, except per share amounts)        Dec 30, 2012              Jan 1, 2012                         Change            
 Net New Stores                                   212                       241                                 (29)              
 Revenues                                         $3,799.6                  $3,435.9                            11%               
 Operating Income                                 $630.6                    $556.0                              13%               
 Operating Margin                                 16.6%                     16.2%                               40 bps            
 EPS                                              $0.57                     $0.50                               14%               
                                                                                                                                  


Consolidated net revenues reached a record $3.8 billion in Q1 FY13, an increase
of 11% over Q1 FY12. The increase was primarily due to a 6% increase in global
comparable store sales, and incremental revenues from 401 net new
company-operated store openings over the past 12 months. The 6% increase in
comparable store sales was comprised of a 4% increase in the number of
transactions and a 2% increase in average ticket. Also contributing to
consolidated net revenue growth was 13% revenue growth in Channel Development
and 14% revenue growth in licensed stores. 

Consolidated operating income increased 13% to a record $630.6 million, compared
to $556.0 million for the same period a year ago. Operating margin expanded 40
basis points to 16.6% this quarter, compared to 16.2% in the same period last
year. The margin increase was primarily due to increased sales leverage. 

Segment Reporting Update

At the beginning of the first quarter of FY13, the company decentralized certain
leadership functions in the areas of retail marketing and category management,
global store development and partner resources, to support and align with the
respective operating segment presidents. In conjunction with these moves,
certain general and administrative and depreciation and amortization expenses
associated with these functions, which were previously reported as unallocated
corporate expenses within "Other," are now reported within the respective
operating segments to align with the regions that they support. In order to
conform prior period classifications with the new alignment, the historical
consolidated financial statements have been recast as reflected in the segment
results below. This change did not impact historical consolidated results.

 Q1 Americas Segment Results                                                             
                                                                                         
                                    Quarter Ended                                        
 ($ in millions)                    Dec 30, 2012              Jan 1, 2012      Change    
 Net New Stores                     80                        95               (15)      
 Revenues                           $2,840.7                  $2,578.6         10%       
 Operating Income                   $590.3                    $548.9           8%        
 Operating Margin                   20.8%                     21.3%            (50) bps  
                                                                                         


Net revenues for the Americas segment were $2.8 billion in Q1 FY13, an increase
of 10% over Q1 FY12. The increase was primarily due to a 7% increase in
comparable store sales, comprised of a 4% increase in the number of transactions
and a 2% increase in average ticket. Also contributing to the net revenue
increase was incremental revenues from 253 net new company-operated store
openings over the past 12 months and 11% revenue growth in licensed stores. 

Operating income increased to $590.3 million in Q1 FY13, growth of 8% compared
to $548.9 million for the same period a year ago. Operating margin decreased 50
basis points to 20.8% in Q1 FY13. The margin contraction was driven by expenses
related to the company's October global leadership conference, litigation
charges and the impact from Superstorm Sandy. These expenses negatively impacted
Q1 FY13 operating income and operating margin by $53 million and 190 basis
points, respectively, compared to the same period in the prior year. Partially
offsetting those expenses was increased sales leverage.

 Q1 EMEA Segment Results                                                            
                                                                                    
                                Quarter Ended                                       
 ($ in millions)                Dec 30, 2012              Jan 1, 2012      Change   
 Net New Stores                 7                         25               (18)     
 Revenues                       $306.1                    $303.0           1%       
 Operating Income               $22.3                     $18.9            18%      
 Operating Margin               7.3%                      6.2%             110 bps  
                                                                                    


Net revenues for the EMEA segment were $306.1 million in Q1 FY13, an increase of
1% over Q1 FY12. The increase was driven by 41% revenue growth in licensed
stores which was nearly offset by a decline in company-operated revenue as a
result of recent store portfolio optimization activities including the sale of
the Ireland store portfolio and UK airport locations to licensed partners as
well as the closure of underperforming stores in the UK. 

Operating income of $22.3 million in Q1 FY13 grew 18% compared to $18.9 million
for the same period a year ago. Operating margin increased 110 basis points to
7.3% compared to 6.2% in the prior-year period. Margin expansion was primarily
driven by a continued focus on cost management and leverage from strong licensed
store revenue growth.

 Q1 China/Asia Pacific Segment Results                                                               
                                                                                                     
                                              Quarter Ended                                          
 ($ in millions)                              Dec 30, 2012              Jan 1, 2012        Change    
 Net New Stores                               125                       121                4         
 Revenues                                     $214.1                    $166.9             28%       
 Operating Income                             $72.1                     $57.3              26%       
 Operating Margin                             33.7%                     34.3%              (60) bps  
                                                                                                     


Net revenues for the China/Asia Pacific segment were $214.1 million in Q1 FY13,
an increase of 28% over Q1 FY12. The increase was primarily due to incremental
revenues from 166 net new company-operated store openings over the past 12
months and an 11% increase in comparable store sales. Additionally, licensed
store revenue growth of 14% contributed to the revenue growth for the region. 

Operating income increased 26% to $72.1 million in Q1 FY13, compared to $57.3
million for the same period a year ago. Operating margin decreased 60 basis
points to 33.7% in Q1 FY13 compared to 34.3% in the prior-year period. 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. The margin contraction was partially offset
by lower performance-based compensation compared to the same period in the prior
year when the region significantly outperformed its operating plan.

 Q1 Channel Development Segment Results                                                              
                                                                                                     
                                               Quarter Ended                                         
 ($ in millions)                               Dec 30, 2012              Jan 1, 2012        Change   
 Revenues                                      $379.8                    $335.8             13%      
 Operating Income                              $96.8                     $77.9              24%      
 Operating Margin                              25.5%                     23.2%              230 bps  
                                                                                                     


Channel Development net revenues were $379.8 million in Q1 FY13, an increase of
13% over Q1 FY12, primarily driven by sales of Starbucks- and Tazo-branded K-Cup
packs. Also contributing to the revenue growth were incremental sales related to
the launch of the Verismo system. 

Channel Development operating income grew 24% to $96.8 million in Q1 FY13
compared to $77.9 million for the same period a year ago. Operating margin
increased 230 basis points to 25.5% in Q1 FY13 compared to 23.2% in the
prior-year period. The margin expansion was mainly due to lower coffee-related
costs, partially offset by Verismo launch costs. 

Fiscal 2013 Targets

Starbucks reaffirms its fiscal 2013 targets as follows:

* The opening of approximately 1,300 net new stores globally, representing 22%
growth over fiscal 2012.

* Approximately 600 net new stores in the Americas, with the majority of those
in the U.S. Of the approximately 600 stores, approximately half of the additions
will be licensed stores. 
* Approximately 600 net new stores in China/Asia Pacific, with licensed stores
comprising approximately half of the new additions. Of the approximately 600
stores, slightly more than half will be in China. 
* Approximately 100 net new stores in EMEA (Europe, Middle East, Russia and
Africa), with licensed stores comprising more than two thirds of the new
stores.

* Revenue growth of approximately 10% - 13%, driven by mid-single-digit
comparable store sales growth, approximately 1,300 net new store openings, and
continued strong growth in the Channel Development business. 
* Full-year consolidated operating margin improvement of approximately 100 basis
points over FY12 results.

* Slight operating margin improvement in the Americas and EMEA segments. 
* Some operating margin contraction in China/Asia Pacific, driven by the shift
in equity mix towards company-operated stores as well as costs associated with
accelerated store growth in China. 
* 100 to 150 basis points of operating margin improvement in Channel
Development.

* Earnings per share of $2.06 to $2.15, representing growth in the range of 15%
- 20%. 
* Capital expenditures of approximately $1.2 billion for the full year,
reflecting the increase in new store growth and an increase in production
capacity to support recently-announced initiatives.

Company Updates

* The company opened its 100th store in Beijing, continuing its aggressive,
profitable growth strategy in China. 
* Starbucks expanded its long-term relationship with Maxim's Group to now
operate Starbucks stores in Vietnam, with the first store scheduled to open in
Ho Chi Minh City in early February 2013. 
* In partnership with Tata Global Beverages Limited, Starbucks opened its first
three stores in Mumbai, India, in Q1. The first store in Delhi is scheduled to
open next month. 
* The company opened its 6th, and first Asia-based, Farmer Support Center in
Yunnan Province, China, allowing the company to work directly with farmers to
help reduce the environmental impact of the region's coffee-growing activities
and improve the livelihood of farmers and their families. 
* Approximately 7,000 company-operated Starbucks locations began accepting
Square's mobile payment application, Square Wallet, giving customers another way
to enjoy a quick, seamless payment. 
* For the 15th year, Starbucks was named one of FORTUNE magazine's "100 Best
Companies to Work For." 
* Starbucks acquired Teavana Holdings, Inc., making Teavana a wholly-owned
subsidiary of Starbucks and the newest addition to Starbucks emerging brands
portfolio, which also includes Evolution Fresh, Seattle's Best Coffee and Tazo. 
* As part of its strategy to reinvent and elevate tea, the company opened its
first Tazo tea store in Seattle's University Village shopping center, to serve
as a learning laboratory for beverage innovation. 
* The Board of Directors declared a cash dividend of $0.21 per share, payable on
February 22, 2013, to shareholders of record as of February 7, 2013. 
* The company repurchased 8 million shares of common stock in Q1 FY13;
approximately 29 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, Jeff
Hansberry, president, Channel Development and Emerging Brands and Troy Alstead,
cfo. The call will be broadcast live over the Internet and can be accessed at
the company`s web site address of http://investor.starbucks.com. A replay of the
call will be available via telephone through 9:00 p.m. Pacific Time on Friday,
January 25, 2013 by calling 1-855-859-2056, reservation number 36843944.A replay
of the webcast will also be available via the Investor Relations page on
Starbucks.com through approximately 5:00 p.m. Pacific Time on Friday, February
22, 2013 at the following URL: http://investor.starbucks.com. 

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, earnings per share, revenues, shareholder value, operational
improvements and efficiencies, diversified business model, changes to
organizational structures, business momentum, growth and growth opportunities
overall and of specific businesses, markets and channels, sales leverage, store
traffic, average ticket, overall performance of new and existing stores, loyalty
programs, operating margins, profits, capital expenditures, operating costs,
charges, comparable store sales, store openings and closings, the strength,
health and potential of our business and brand, product innovations, store
experience, tax rate and commodity costs and their impact. 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                       
 Fiscal Year Ended                                                                  Dec 30,                    Jan 1,                     %                  Dec 30,                Jan 1,       
                                                                                    2012                       2012                       Change             2012                   2012         
                                                                                                                                                             As a % of total                     
                                                                                                                                                             net revenues                        
 Net revenues:                                                                                                                                                                                   
 Company-operated stores                                                            $    2,989.6               $    2,731.8               9.4    %           78.7   %               79.5   %     
 Licensed stores                                                                         350.2                      306.6                 14.2               9.2                    8.9          
 CPG, foodservice and other                                                              459.8                      397.5                 15.7               12.1                   11.6         
 Total net revenues                                                                      3,799.6                    3,435.9               10.6               100.0                  100.0        
 Cost of sales including occupancy costs                                                 1,620.7                    1,496.1               8.3                42.7                   43.5         
 Store operating expenses                                                                1,089.5                    995.7                 9.4                28.7                   29.0         
 Other operating expenses                                                                132.5                      106.7                 24.2               3.5                    3.1          
 Depreciation and amortization expenses                                                  148.9                      134.8                 10.5               3.9                    3.9          
 General and administrative expenses                                                     231.9                      191.5                 21.1               6.1                    5.6          
 Total Operating Expenses                                                                3,223.5                    2,924.8               10.2               84.8                   85.1         
 Income from equity investees                                                            54.5                       44.9                  21.4               1.4                    1.3          
 Operating income                                                                        630.6                      556.0                 13.4               16.6                   16.2         
 Interest income and other, net                                                          (2.9     )                 23.2                  nm                 (0.1   )               0.7          
 Interest expense                                                                        (6.6     )                 (8.6     )            (23.3  )           (0.2   )               (0.3   )     
 Earnings before income taxes                                                            621.1                      570.6                 8.9                16.3                   16.6         
 Income taxes                                                                            188.7                      188.4                 0.2                5.0                    5.5          
 Net earnings including noncontrolling interest                                          432.4                      382.2                 13.1               11.4                   11.1         
 Net earnings attributable to noncontrolling interest                                    0.2                        0.1                   100.0              -                      -            
 Net earnings attributable to Starbucks                                             $    432.2                 $    382.1                 13.1   %           11.4   %               11.1   %     
                                                                                                                                                                                                 
 Net earnings per common share - diluted                                            $    0.57                  $    0.50                  14.0   %                                               
 Weighted avg. shares outstanding - diluted                                              761.3                      768.5                                                                        
                                                                                                                                                                                                 
 Cash dividends declared per share                                                  $    0.21                  $    0.17                                                                         
                                                                                                                                                                                                 
 Supplemental Ratios:                                                                                                                                                                            
 Store operating expenses as a percentage of company-operated stores revenue                                                                                 36.4   %               36.4   %     
 Effective tax rate including noncontrolling interest                                                                                                        30.4   %               33.0   %     
                                                                                                                                                                                                 


Segment Results

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

 Americas                                                                                                                                                                          
                                                                                                                                                                                   
                                                                                    Dec 30,              Jan 1,             %                Dec 30,                  Jan 1,       
                                                                                    2012                 2012               Change           2012                     2012         
                                                                                                                                             As a % of Americas                    
 Quarter Ended                                                                                                                               total net revenues                    
 Net revenues:                                                                                                                                                                     
 Company-operated stores                                                            $     2,586.4        $     2,356.2      9.8    %         91.0   %                 91.4   %     
 Licensed stores                                                                          239.2                216.4        10.5             8.4                      8.4          
 CPG, foodservice and other                                                               15.1                 6.0          151.7            0.5                      0.2          
 Total net revenues                                                                       2,840.7              2,578.6      10.2             100.0                    100.0        
 Cost of sales including occupancy costs                                                  1,092.5              1,006.7      8.5              38.5                     39.0         
 Store operating expenses                                                                 959.8                874.8        9.7              33.8                     33.9         
 Other operating expenses                                                                 30.0                 20.5         46.3             1.1                      0.8          
 Depreciation and amortization expenses                                                   105.4                97.1         8.5              3.7                      3.8          
 General and administrative expenses                                                      62.7                 30.6         104.9            2.2                      1.2          
 Total Operating Expenses                                                                 2,250.4              2,029.7      10.9             79.2                     78.7         
 Operating income                                                                   $     590.3          $     548.9        7.5    %         20.8   %                 21.3   %     
 Supplemental Ratios:                                                                                                                                                              
 Store operating expenses as a percentage of company-operated stores revenue                                                                 37.1   %                 37.1   %     
                                                                                                                                                                                   


 EMEA                                                                                                                                                                         
                                                                                                                                                                              
                                                                                    Dec 30,          Jan 1,           %                 Dec 30,                  Jan 1,       
                                                                                    2012             2012             Change            2012                     2012         
                                                                                                                                        As a % of EMEA                        
 Quarter Ended                                                                                                                          total net revenues                    
 Net revenues:                                                                                                                                                                
 Company-operated stores                                                            $     252.7      $     264.3      (4.4    )%        82.6   %                 87.2   %     
 Licensed stores                                                                          43.9             31.2       40.7              14.3                     10.3         
 CPG, foodservice and other                                                               9.5              7.5        26.7              3.1                      2.5          
 Total net revenues                                                                       306.1            303.0      1.0               100.0                    100.0        
 Cost of sales including occupancy costs                                                  152.5            150.4      1.4               49.8                     49.6         
 Store operating expenses                                                                 90.3             93.8       (3.7    )         29.5                     31.0         
 Other operating expenses                                                                 8.4              8.6        (2.3    )         2.7                      2.8          
 Depreciation and amortization expenses                                                   14.2             14.2       -                 4.6                      4.7          
 General and administrative expenses                                                      18.4             17.4       5.7               6.0                      5.7          
 Total Operating Expenses                                                                 283.8            284.4      (0.2    )         92.7                     93.9         
 Income from equity investees                                                             -                0.3        (100.0  )         -                        0.1          
 Operating income                                                                   $     22.3       $     18.9       18.0    %         7.3    %                 6.2    %     
 Supplemental Ratios:                                                                                                                                                         
 Store operating expenses as a percentage of company-operated stores revenue                                                            35.7   %                 35.5   %     
                                                                                                                                                                              


 China / Asia Pacific (CAP)                                                                                                                                                  
                                                                                                                                                                             
                                                                                    Dec 30,          Jan 1,           %                Dec 30,                  Jan 1,       
                                                                                    2012             2012             Change           2012                     2012         
                                                                                                                                       As a % of CAP                         
 Quarter Ended                                                                                                                         total net revenues                    
 Net revenues:                                                                                                                                                               
 Company-operated stores                                                            $     150.5      $     111.3      35.2   %         70.3   %                 66.7   %     
 Licensed stores                                                                          63.6             55.6       14.4             29.7                     33.3         
 Total net revenues                                                                       214.1            166.9      28.3             100.0                    100.0        
 Cost of sales including occupancy costs                                                  106.5            84.5       26.0             49.7                     50.6         
 Store operating expenses                                                                 39.4             27.1       45.4             18.4                     16.2         
 Other operating expenses                                                                 10.2             11.4       (10.5  )         4.8                      6.8          
 Depreciation and amortization expenses                                                   7.4              5.0        48.0             3.5                      3.0          
 General and administrative expenses                                                      12.6             9.2        37.0             5.9                      5.5          
 Total Operating Expenses                                                                 176.1            137.2      28.4             82.3                     82.2         
 Income from equity investees                                                             34.1             27.6       23.6             15.9                     16.5         
 Operating income                                                                   $     72.1       $     57.3       25.8   %         33.7   %                 34.3   %     
 Supplemental Ratios:                                                                                                                                                        
 Store operating expenses as a percentage of company-operated stores revenue                                                           26.2   %                 24.3   %     
                                                                                                                                                                             


 Channel Development                                                                                                                    
                                                                                                                                        
                                               Dec 30,          Jan 1,           %                Dec 30,                  Jan 1,       
                                               2012             2012             Change           2012                     2012         
                                                                                                  As a % of                             
                                                                                                  Channel Development                   
 Quarter Ended                                                                                    total net revenues                    
 Net revenues:                                                                                                                          
 CPG                                           $     288.3      $     247.1      16.7   %         75.9   %                 73.6   %     
 Foodservice                                         91.5             88.7       3.2              24.1                     26.4         
 Total net revenues                                  379.8            335.8      13.1             100.0                    100.0        
 Cost of sales                                       235.2            220.6      6.6              61.9                     65.7         
 Other operating expenses                            63.1             50.1       25.9             16.6                     14.9         
 Depreciation and amortization expenses              0.3              0.4        (25.0  )         0.1                      0.1          
 General and administrative expenses                 4.8              3.8        26.3             1.3                      1.1          
 Total Operating Expenses                            303.4            274.9      10.4             79.9                     81.9         
 Income from equity investees                        20.4             17.0       20.0             5.4                      5.1          
 Operating income                              $     96.8       $     77.9       24.3   %         25.5   %                 23.2   %     
                                                                                                                                        


 Other                                                                                                 
                                                                                                       
                                               Dec 30,               Jan 1,                %           
                                               2012                  2012                  Change      
 Quarter Ended                                                                                         
 Net revenues:                                                                                         
 Licensed stores                               $    3.5              $    3.4              2.9   %     
 CPG, foodservice and other                         55.4                  48.2             14.9        
 Total net revenues                                 58.9                  51.6             14.1        
 Cost of sales                                      34.0                  33.9             0.3         
 Other operating expenses                           20.8                  16.1             29.2        
 Depreciation and amortization expenses             21.6                  18.1             19.3        
 General and administrative expenses                133.4                 130.5            2.2         
 Total Operating Expenses                           209.8                 198.6            5.6         
 Operating loss                                $    (150.9  )        $    (147.0  )        2.7   %     
                                                                                                       


Supplemental Information

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

 Fiscal First Quarter 2013 U.S. Supplemental Data                                                             
                                                                                                              
                                                         Quarter Ended                                        
 ($ in millions)                                         Dec 30, 2012              Jan 1, 2012        Change  
 Comparable Store Sales Growth                           7%                        9%                         
 Change in Transactions                                  4%                        8%                         
 Change in Ticket                                        2%                        2%                         
 Revenues                                                $2,503.9                  $2,291.8           9%      
 Operating Income                                        $587.9                    $522.2             13%     
 Operating Margin                                        23.5%                     22.8%              70 bps  
                                                                                                              


Fiscal First 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                                         Stores open as of              
                            Dec 30,                                 Jan 1,        Dec 30,                Jan 1,  
                            2012                                    2012          2012                   2012    
 Americas:                                                                                                       
 Company-operated           30                                      11            7,887                  7,634   
 Licensed stores            50                                      84            5,096                  4,860   
                            80                                      95            12,983                 12,494  
 EMEA:                                                                                                           
 Company-operated(1)        (20       )                             8             862                    880     
 Licensed stores(1)         27                                      17            1,014                  903     
                            7                                       25            1,876                  1,783   
 CAP:                                                                                                            
 Company-operated           47                                      35            713                    547     
 Licensed stores            78                                      86            2,706                  2,420   
                            125                                     121           3,419                  2,967   
                                                                                                                 
 Total                      212                                     241           18,278                 17,244  
                                                                                                                 
 (1) EMEA store data has been adjusted for the transfer of certain company-operated stores to licensees in the fourth quarter of fiscal 2012. 


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Starbucks Corporation
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