SEATTLE, November 03, 2011 - Starbucks Corporation (NASDAQ:SBUX) today reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended October 2, 2011. These results include the impact of non-routine gains related to the sale of corporate real estate and the acquisition of the company’s joint venture operations in Switzerland and Austria. The comparable prior-year periods included 14 and 53 weeks, respectively, as fiscal 2010 contained an extra week. In addition, fiscal 2010 results also included the impact of restructuring charges. A reconciliation of select GAAP measures to non-GAAP measures is available at the end of this document.

Fiscal Fourth Quarter 2011 Highlights:

• EPS increased 27% to $0.47 in Q4 FY11, including $0.10 attributable to non-routine gains, compared to $0.37 per share in Q4 FY10, which included approximately $0.05 related to the extra week
  • EPS increased 16% to a record $0.37 from $0.32 per share, excluding the non-routine gains in Q4 FY11, and the impact of restructuring and the extra week in Q4 FY10
• Total net revenues reached a record $3.0 billion, an increase of 7% from the 14-week period in FY10, and an increase of approximately 15% on a comparative 13-week basis
• Global comparable store sales increased 9% on a comparative 13-week basis, driven by a 6% increase in traffic and a 3% increase in average ticket
• Consolidated operating margin reached 14.8%, up 70 basis points over the prior-year period’s GAAP results
  • Operating margin expanded 60 basis points to 13.8% from 13.2% on a non-GAAP basis, which excludes the non-routine gain in Q4 FY11 and the impact of restructuring and the extra week in Q4 FY10
• The Board of Directors declared a cash dividend of $0.17 per share, a 31% increase from $0.13 per share
• The Board also authorized the repurchase of up to an additional 20 million shares of the company’s common stock

Full-Year 2011 Highlights:

• EPS increased 31% to $1.62 in FY11, including $0.10 attributable to non-routine gains, compared to $1.24 per share in FY10
  • EPS increased 24% to a record $1.52 from $1.23 per share, excluding the non-routine gains in Q4 FY11, and the impact of restructuring and the extra week in Q4 FY10
• Total net revenues reached a record $11.7 billion, an increase of 9% from the 53-week period in FY10, and an increase of approximately 11% on a comparative 52-week basis
• Global comparable store sales increased 8% on a comparative 52-week basis, driven by a 6% increase in traffic and a 2% increase in average ticket
• Consolidated operating margin reached 14.8%, up 150 basis points over the prior-year period’s GAAP results
  • Consolidated operating margin increased 100 basis points to 14.5% from 13.5% on a non-GAAP basis, which excludes the non-routine gains in FY11 and the impact of restructuring and the extra week in FY10
  • U.S. operating margin improved 230 basis points to a record 19.4% on a GAAP basis; U.S. operating margin improved 220 basis points excluding the impact of restructuring and the extra week in FY10
  • International operating margin improved 350 basis points to a record 13.3% on a GAAP basis; International operating margin improved 270 basis points excluding the impact of restructuring and the extra week in FY10
  • Global CPG operating margin was 31.7%
• Operating cash flow totaled $1.6 billion; Free cash flow of $1.1 billion
• Starbucks returned approximately $945 million to shareholders through share repurchases and dividends, more than doubling the amount returned in FY10

“Fiscal 2011 was an extraordinary year in which Starbucks reported record earnings every quarter, and for the full year, and very strong comp store sales growth all around the world,” said Howard Schultz, chairman, president and ceo. “Starbucks today is executing in all markets and across all channels, and we have never been better positioned to go hard and go fast after the tremendous opportunity that lies ahead in 2012 and beyond,” Schultz added.

"The record results we reported today for the fourth quarter and the full fiscal year are a testament to the overall health and strength of our global business,” commented Troy Alstead, cfo. “The momentum we have built throughout the year continued in the fourth quarter, with the strength of same store sales growth demonstrating that our product innovation and overall store experience are resonating extremely well with our customers. As a result of the strong finish to fiscal 2011, Starbucks entered the new fiscal year well positioned to continue pursuing significant profitable growth opportunities.”

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