Apr 25, 2013 Starbucks Reports Record Second Quarter Fiscal 2013 Results

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

Revenues Increase 11% to a Q2 Record $3.6 Billion; Operating Income Rises 26%

Record Q2 EPS of $0.51 Includes $0.03 Non-Routine Gain

Company Raises Full Year EPS Target

SEATTLE, April 25, 2013 - 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.

 

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