Starbucks Corporation announces that Kevin Johnson to become CEO; Howard Schultz to become executive chairman

Starbucks Corporation announces that Kevin Johnson to become CEO; Howard Schultz to become executive chairman
Starbucks Corporation announces that Kevin Johnson to become CEO; Howard Schultz to become executive chairman

 

  • Kevin Johnson to become chief executive officer and assume full responsibility for Starbucks global business and operations
  • Howard Schultz to become executive chairman and focus on retail innovation and accelerating growth of Starbucks ultra-premium retail formats

SEATTLE, 2016-Dec-02 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today (December 1, 2016 ) announced that Kevin Johnson, president and chief operating officer and a 7-year member of the Starbucks Board of Directors, will expand his responsibilities and assume the role and responsibilities of president and chief executive officer, effective April 3, 2017.

Also effective April 3, 2017, Howard Schultz, chairman and ceo, will be appointed executive chairman and will shift his focus to innovation, design and development of Starbucks Reserve® Roasteries around the world, expansion of the Starbucks Reserve® retail store format and the company’s social impact initiatives. In this new role Schultz will continue to serve as chairman of the Board.

“Starbucks consistently outperforms the retail industry because our stores, our offerings and the experiences our partners create make us a destination. The best evidence of the success of the core strategy driving our business is that we continue to deliver quarter after quarter of record, industry leading revenue, comp sales and profit growth, and that the newest classes of Starbucks stores continue to deliver record-breaking revenues, AUV’s and ROI both in the U.S. and around the world,” said Schultz. “As I focus on Starbucks next wave of retail innovation, I am delighted that Kevin Johnson – our current president, coo, a seven-year board member and my partner in running every facet of Starbucks business over the last two years – has agreed to assume the duties of Starbucks chief executive officer. This move ideally positions Starbucks to continue profitably growing our core business around the world into the future.”

As president and chief operating officer since March 2015, Johnson has led the company’s global operating businesses across all geographies as well as the core support functions of Starbucks supply chain, marketing, human resources, technology, and mobile and digital platforms. Johnson has been a Starbucks board member since 2009, and will continue to serve as a member of the Board.

“Over the past two decades, I have grown to know Starbucks first as a customer, then as a director on the board, and for the past two years as a member of the management team. Through that journey, I fell in love with Starbucks and I share Howard’s commitment to our mission and values and his optimism for the future,” said Johnson.  “It is an honor for me to serve the more than 300,000 partners who proudly wear the green apron and I consider it a privilege to work side-by-side with Howard, our world-class board of directors, and a very talented leadership team. Together, we will reaffirm our leadership in all things coffee, enhance the partner experience and exceed the expectations of our customers and shareholders.  We believe in using our scale for good and having positive social impact in the communities we serve around the world.”

Johnson’s career spans 33 years in the technology industry which included a 16-year career at Microsoft and a five-year tour as CEO of Juniper Networks. At Microsoft, he led worldwide sales and marketing and became the president of the Platforms Division. In 2008, he was appointed to the National Security Telecommunication Advisory Committee where he served Presidents George W. Bush and Barack Obama. He joined the Starbucks board in 2009 and the management team in 2015.

Transcript from Investor and Media Conference Call, December 1, hosted by Howard Schultz and Kevin Johnson

Howard Schultz:

Kevin and I are very excited to have this opportunity to provide additional context around this afternoon’s announcement and to answer any questions you might have.

You may recall that it was three years ago that I shared with you what I sensed were the early signs of a seismic shift in consumer behavior – away from bricks-and-mortar and towards mobile and online retailing. Today, that shift has taken firm hold around the world, both disrupting and redefining retailing and significantly reducing the consumer foot-traffic that traditional retailers have relied on for decades.

Despite the shift, Starbucks has been able to consistently outperform the retail industry. We’ve been able to do so because our stores, our offerings and the experiences our partners create make us a destination, and because we invested way ahead of the curve to create world-class mobile, loyalty and digital capabilities that enable us to provide our customers with an increasingly elevated Starbucks Experience to our customers.

Evidence of the correctness, and the success, of the core strategy that is driving our business are the facts that we continue to deliver quarter after quarter of record, industry-leading revenue, comp sales and profit growth, and that each successive new class of Starbucks stores is delivering record-breaking revenues, AUVs, ROI – both in the U.S. and around the world. This trend was repeated most recently in the 2016 fiscal year that just ended.

I also shared with you the view that the U.S. was over-retailed. To survive – let alone succeed – traditional bricks-and-mortar retailers would have to evolve their physical spaces into relevant customer destinations, as Starbucks stores have been for the last 40 years through the environments we create and the beverages and foods we serve – and create premiumized, experiential consumer venues.

That view is what inspired development of the Starbucks Roastery and Reserve brand.

Since its opening two years ago, our Seattle Roastery has become widely recognized as the world’s most immersive, coffee-forward retail experience. Executives from premier global retailers like Apple, Nike and Zara have shared with me their view that the Roastery delivers the best retail experience – in or out of coffee – that they have ever encountered. Our Roastery is attracting customers and visitors to Seattle alike, and casting a bright halo across the entire Starbucks global brand and ecosystem.

With the Roastery, we introduced into the coffee category a previously unattained level of premiumization. Its success is unparalled, last year achieving a comp sales increase of 24% and delivering a ticket that is four times the ticket of a typical Starbucks store. The Roastery has become a learning laboratory for breakthrough innovation and experiential design and a beacon for the next wave of Starbucks global growth and evolution.

Going forward, we will open at least 20 Roasteries around the world, six by the end of calendar 2019 alone. At the same time, elements of the Roastery are forming the basis of the 1,000 or more Starbucks Reserve stores we will be opening around the world in the years ahead.

Starbucks Reserve is a new, premium retail coffee format that will showcase the newest coffee-brewing methods and offer customers the finest assortment of exclusive, micro-lot coffees sourced from around the world in an all sensory experience emblematic of our Seattle Roastery, paired with artisanal food offerings developed with our partners from Italian artisanal baker Princi. We expect Starbucks Reserve stores to deliver twice the unit economics of the typical Starbucks store.

We will also add Reserve bars into thousands of existing Starbucks stores over time. Let me explain what a Reserve bar is and what that means to the company.

The Roastery has taught us and demonstrated that we can create customized, handcrafted beverages for our customers, using cutting-edge brewing methods and profitably deliver them at scale. Over time, you will see us introduce this unique capability into thousands of existing Starbucks stores around the world, further elevating the Starbucks Experience we deliver to our customers and further extending the halo that the Roastery casts across the entire Starbucks brand.

Like our current stores – and the new classes of Starbucks stores we will be opening globally in the years to come – Roasteries, Reserve Stores and Reserve bars that will be customer destination venues. They will broaden, deepen and elevate our customer experience, and represent an unprecedented new global growth opportunity for the company. I am personally as passionate about developing the Reserve brand, and opening more Roasteries, as I was about opening our first espresso bar more than 30 years ago in Seattle.

As I shift my focus to this next wave of retail innovation, I am sincerely pleased that Kevin Johnson – our current president, coo, a seven-year board member, and my partner in running every facet of Starbucks business day-to-day over the last two years – will be assuming the duties of Starbucks chief executive officer in April 2017. This move ideally positions Starbucks to continue to profitably grow our core business around the world.

Let me tell you why I personally asked Kevin to take on the ceo role, and why the Board and I believe that he is the ideal ceo for Starbucks at this moment in our journey.

Many of you are familiar with the breadth of global management experience and the deep consumer and technology expertise that Kevin brought to Starbucks when he joined our board in 2009.

Since then, Kevin has been a wise and supportive resource for me, personally, both during and following our company’s transformation. For years he has provided invaluable insights into how we scale the company around the world, and how to best integrate industry leading customer facing technology into our customer experience and operations.

I’ll simply note that Kevin has been immersed with us on management and operations issues and opportunities well before he took over the coo role two years ago. And that the two fiscal years following his engagement have been the best years in the history of Starbucks Coffee Company, with the most recent year producing record-shattering financial results and operating metrics across the board. Let me just say he deserves a tremendous amount of credit.

Along the way, Kevin and I have formed a trusting partnership, and Kevin’s collaborative leadership style has won the loyalty and respect of our people while driving the team to deliver record performance.

Kevin brings to the ceo role an unparalleled understanding of the market dynamics and strategic choices that have driven Starbucks to become one of the world’s most recognized and respected companies and brand.

We share a passion for customer-focused innovation and a commitment to preserving Starbucks heritage. Our complementary backgrounds – my entrepreneurial journey building Starbucks and Kevin’s decades spent scaling global businesses – will continue to help Starbucks navigate this new period of worldwide growth and innovation.

Kevin is, in every respect, a true servant leader and a person whose courage, compassion and empathy model the very characteristics we want for all partners and all our leaders. His approach to solving complex problems and his ability to bring out the best in people will continue to make all of us at Starbucks better in the same context that he has made me better.

I will remain Starbucks executive chairman, focusing full-time on the incredible growth opportunities we have in expanding Roasteries and building out our portfolio of Reserve stores and on Starbucks social impact agenda which will be a significant part of the focus going forward.

The truth is, in all my years at Starbucks I have never been more energized or exhilarated about the opportunities that lie ahead.

Please join me in congratulating Kevin. These are exciting times for all of us. Kevin…

Kevin Johnson:

Thank you, Howard, and good afternoon everyone.

Howard summarized our strategic imperative very well. Given the seismic shifts in consumer retail behavior, we have seamlessly extended our brick-and-mortar experience to the digital world, and we are now focused on a multi-year strategy to elevate the entire brand, extend our differentiation around the customer experience, and build on the strength of Starbucks as a destination.

Our five-year strategic plan, which we will review again at next week’s investor conference in New York, outlines seven core strategies for growth that will enable us to capture the global growth opportunities before us.

I firmly believe in this strategy, and we are already in execution mode. As a leadership team, we have prioritized initiatives, allocated resources, and aligned talent to enable us to execute against this strategic plan. It was the key driver of the organizational alignment decisions we made in July, when we created a Global Starbucks Retail organization and a Siren Retail organization.

Today’s announcement is another evolutionary step in our journey. This formalizes the leadership roles and responsibilities that Howard and I have taken on as we focus on this strategic plan. This plan requires us, as a leadership team, to execute several things in parallel and do them well. We are doing this by leveraging Howard’s unique capability to establish an ultra-premium consumer experience through the Roasteries and Reserve Stores while we continue to leverage my experience in large global businesses and technology to accelerate the pace of customer-relevant innovation across the entire brand – all at scale.

I value the partnership that Howard and I have developed over the past decade. My experience working with him on the board since 2009 combined with the past two years on the management team has evolved into a very special relationship. We share common values, a love for the company, and a commitment to always do the right thing for our partners, our shareholders, the customers and communities we serve.

I do want to acknowledge the obvious: Howard Schultz is among the world’s most iconic leaders and entrepreneurs. I know Howard doesn’t personally think of himself that way, but as his business partner and friend, I know this to be true. It is a privilege to work side-by-side with Howard. I have great confidence in our strategy, the partnership that we have developed, and the world-class talent we have assembled.

The women and men of Starbucks Leadership Team have become my trusted partners. They support this transition, and I appreciate the passion, creativity and commitment that each person brings to this team. We work well together and have built a foundation of trust, transparency and teamwork. I believe we will elevate our collective contribution as we pursue our mission and achieve the company’s ambitious goals.

A few final thoughts: Having Starbucks in my life has been a gift. I know I am not alone. So many Starbucks partners have shared their personal life stories with me and what Starbucks means to them. I have so much respect and admiration for the more than 300,000 partners who proudly wear the green apron in service of others, and I am proud to serve them. I want to thank Howard for his faith in me, his ongoing partnership, and the immeasurable gifts he has given so many for so long. I am honored to serve as the chief executive of a company that has a role and responsibility – and a deep opportunity – to create value for so many.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 25,000 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 and www.news.starbucks.com.

Forward Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “anticipate,” “expect,” “believe,” “could,” “estimate,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based upon information available to Starbucks as of the date hereof, and Starbucks actual results or performance could different materially from those stated or implied due to risks and uncertainties associated with its business. These risks and uncertainties include, but are not limited to, fluctuations in U.S. and international economies and currencies, our ability to preserve, grow and leverage our brands, potential negative effects of incidents involving food or beverage-borne illnesses, tampering, contamination or mislabeling, potential negative effects of material breaches of our information technology systems to the extent we experience a material breach, material failures of our information technology systems, costs associated with, and the successful execution of, the company’s initiatives and plans, the acceptance of the company’s products by our customers, the impact of competition, coffee, dairy and other raw materials prices and availability, 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 the Starbucks Annual Report on Form 10-K for the fiscal year ended October 2, 2016. The company assumes no obligation to update any of these forward-looking statements.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Starbucks Corporation to host its 2016 Investor Day on Wednesday, December 7th

Starbucks Corporation to host its 2016 Investor Day on Wednesday, December 7th
Starbucks Corporation to host its 2016 Investor Day on Wednesday, December 7th

 

SEATTLE, 2016-Nov-18 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) will host its 2016 Investor Day on Wednesday, December 7th. The event will feature presentations and a Q&A session with Howard Schultz, chairman and chief executive officer; Kevin Johnson, president and chief operating officer; Scott Maw, executive vice president and chief financial officer; and other members of the company’s senior leadership team.

Due to limited capacity, attendance is by invitation only. The event will be webcast live and all interested parties are invited to access the webcast from the company’s website: http://investor.starbucks.com. The event is scheduled to begin at 8:00 a.m. ET and will continue until approximately 12 noon ET. Following a break for lunch, the webcast of the live event will resume at approximately 1:30 p.m. ET and is expected to conclude at approximately 3:00 p.m. ET.

The presentation slides shown at the event and on the live webcast will be available for download on the company’s website by the end of the day on December 7, 2016. A replay of the webcast will remain accessible through January 6, 2017.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 24,000 stores around the globe, Starbucks 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 our stores or online at news.starbucks.com and Starbucks.com.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Starbucks Corporation to present at the Goldman Sachs 23rd Annual Global Retailing Conference on September 7, 2016

Starbucks Corporation to present at the Goldman Sachs 23rd Annual Global Retailing Conference on September 7, 2016
Starbucks Corporation to present at the Goldman Sachs 23rd Annual Global Retailing Conference on September 7, 2016

 

Seattle, 2016-Aug-26 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today (August 24, 2016) announced the company will present at the Goldman Sachs 23rd Annual Global Retailing Conference on Wednesday, September 7, 2016 at 3:55 p.m. ET.

The presentation will be webcast and can be accessed at http://investor.starbucks.com. A replay of the webcast will be available at the same URL until October 7, 2016.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 24,000 stores around the globe, Starbucks 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 our stores or online at news.starbucks.com and Starbucks.com.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Starbucks Corporation to release its third quarter fiscal year 2016 financial results on Thursday, July 21, 2016

SEATTLE, 2016-Jul-07 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) plans to release its third quarter fiscal year 2016 financial results after the market close on Thursday, July 21, 2016, with a conference call to follow at 2:00 p.m. PT.

The conference call will be webcast and can be accessed on the company’s website http://investor.starbucks.com. A replay of the webcast will be available on the company’s website until end of day Saturday, August 20, 2016.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 23,000 stores around the globe, Starbucks 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 our stores or online at news.starbucks.com and Starbucks.com.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

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Starbucks Corporation to release its third quarter fiscal year 2016 financial results on Thursday, July 21, 2016
Starbucks Corporation to release its third quarter fiscal year 2016 financial results on Thursday, July 21, 2016

Source: Starbucks

Starbucks Corporation announces the appointment of Hans Melotte as executive vice president, Global Supply Chain

SEATTLE, 2016-Jun-20 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced the appointment of Hans Melotte as executive vice president, Global Supply Chain, effective June 27.  In this role, Melotte will lead Starbucks Global Supply Chain organization, which helps power Starbucks operations in more than 70 countries worldwide. Most recently, Melotte served as Johnson & Johnson’s Chief Procurement Officer, where he oversaw the company’s global procurement team and led the transformation of the procurement function to becoming a best in class organization.

“Hans brings more than 25 years of experience from highly-respected consumer brands and the deep leadership and technical expertise necessary to take our game to the next level,” said Kevin Johnson, president and chief operating officer, Starbucks. “He will play a critical role in driving the supply chain agenda across the business and leading our ongoing efforts to create a scalable and agile function that enables growth for Starbucks around the world.  With his strong track-record and ambitious vision for the organization, Hans’ leadership will help accelerate the pace of innovation in our business processes and transform the way we support our retail stores and distribution channels in terms of both efficiency and effectiveness.”

Melotte will report to Johnson and serve as a member of Starbucks senior leadership team. He will be responsible for end-to-end supply chain operations globally spanning sourcing and supplier relationships, distribution, planning, commercialization, transportation and store delivery – ensuring the company’s supply chain road map supports the core business while at the same time enabling key strategic initiatives and the growth of Starbucks business around the globe.

“I’ve had the opportunity to lead a truly world-class procurement organization at Johnson & Johnson, and as I embark on this new chapter, I am honored to join Starbucks and help shape the future of its global supply chain operations,” said Melotte.

“As Starbucks business grows in the U.S. and around the world, my goal will be to ensure the company’s network of more than 16,000 suppliers is always available to Starbucks partners, both in supply chain and in stores, so we can enable more time for customer connection. The opportunity ahead is both vast and exciting, and I look forward to joining the great supply chain talent Starbucks has today and helping drive the company’s plans for growth and innovation.”

Melotte’s career spans nearly three decades of supply chain expertise and global business leadership. Most recently, he served as Johnson & Johnson’s Chief Procurement Officer, where he oversaw the procurement team across 60 countries. During his time with Johnson & Johnson he was recognized for his people leadership and held roles in multiple regions across the Consumer and Pharmaceutical businesses in procurement, supply chain, shared services and innovation. Prior to Johnson & Johnson, Melotte worked at Procter & Gamble and Coopers & Lybrand.

Originally from Belgium, Melotte received a Master’s Degree in business from the University of Louvain. In 2013, he was named as one of the “Top 10 Most Influential and Thought Leader CPO’s” in the U.S. In 2010, he was honored as the “Procurement Leader of the Year.” Melotte also serves as Chairman of the Board of Directors of the Institute of Supply Management (ISM), and is also a member of the Board of Directors of International Schools Services (ISS).

Melotte will be relocating to Seattle from New Jersey with his family. He will be based in the Starbucks Support Center beginning June 27.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

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Starbucks Corporation announces the appointment of Hans Melotte as executive vice president, Global Supply Chain

Starbucks Corporation announces the appointment of Hans Melotte as executive vice president, Global Supply Chain

 

Source: Starbucks

Starbucks Corporation to release its Q2 FY 2016 financial results on Thursday, April 21, 2016

SEATTLE, 2016-Apr-07 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) plans to release its second quarter fiscal year 2016 financial results after the market close on Thursday, April 21, 2016, with a conference call to follow at 2:00 p.m. PT.

The conference call will be webcast and can be accessed on the company’s website: http://investor.starbucks.com. A replay of the webcast will be available on the company’s website until end of day Saturday, May 21, 2016.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-qualityarabica coffee. Today, with more than 23,000 stores around the globe, Starbucks 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 our stores or online at news.starbucks.com and Starbucks.com.

For more information on this news release, contact us

 

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Starbucks Corporation to release its Q2 FY 2016 financial results on Thursday, April 21, 2016

Starbucks Corporation to release its Q2 FY 2016 financial results on Thursday, April 21, 2016

Starbucks Corporation priced $500 million of 2.100% Senior Notes due 2021

SEATTLE, 2016-Feb-02 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced that it has priced an underwritten public offering of senior notes.  The company plans to use the net proceeds from the offering of $500 million of 2.100% Senior Notes due 2021 for general corporate purposes, which may include repurchases of Starbucks common stock under the company’s ongoing share repurchase program, business expansion, payment of cash dividends on Starbucks common stock, or the financing of possible acquisitions. The offering of the senior notes is expected to close on February 4, 2016, subject to customary closing conditions.

Goldman Sachs, J.P. Morgan and Morgan Stanley are serving as the joint book-running managers of the offering.  The offering is being made under an automatic shelf registration statement filed with the Securities and Exchange Commission (“SEC”) on September 3, 2013.  The offering may be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from:

Goldman Sachs
prospectus-ny@ny.email.gs.com
866-718-1649

J.P. Morgan
212-834-4533

Morgan Stanley
prospectus@morganstanley.com
866-471-2526

An electronic copy of the registration statement and prospectus supplement, together with the prospectus, is available on the SEC’s website at www.sec.gov.

This press release does not constitute an offer to sell nor a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

Forward-Looking Statements

Certain statements contained in this release are “forward-looking statements” within the meaning of applicable securities laws and regulations, including statements about the expected closing of a public offering or senior notes and the use of proceeds of such offering. Such forward-looking statements are based on current management expectations and satisfactions of certain conditions that are subject to various risks and uncertainties, including market conditions and those risks detailed in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Starbucks Annual Report on Form 10-K for the fiscal year ended September 27, 2015, and the prospectus and prospectus supplement delivered in connection with the public offering of senior notes discussed in this release. The company assumes no obligation to update any of these forward-looking statements.

For more information on this news release, contact us

Starbucks Corporation announces that Mary Dillon, CEO of Ulta Beauty was elected to the Starbucks Board of Directors

SEATTLE, 2016-1-11 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced that Mary Dillon, CEO of Ulta Beauty (NASDAQ: ULTA) was elected to the Starbucks Board of Directors on Jan. 4 and she will serve on the Board’s Compensation and Management Development Committee. Dillon brings three decades of experience leading consumer-driven brands to build brand engagement and drive profitable growth.

“Mary shares our desire to deliver shareholder value while embracing the values and guiding principles that serve our people, our customers, and the neighborhoods where we do business, and we are honored to have her join the Starbucks Board of Directors,” said Howard Schultz, chairman and ceo. “Mary’s proven track record for leveraging consumer insights and customer-focused strategies together with her leadership and passion for excellence make her the ideal addition to contribute to our next phase of growth as a company.”

Since Dillon took the helm of Ulta Beauty in June 2013, the company has achieved record sales and earnings. Dillon led Ulta Beauty to 21 percent top-line growth and comparable sales growth of nearly 10 percent for fiscal year 2014.  Ulta Beauty currently operates 875 stores in 48 states and a thriving e-commerce business making it the nation’s largest specialty beauty retailer. Dillon is responsible for an employee base of more than 22,000 full- and part-time employees, 92 percent of whom are women.  In the last two years, Dillon has added 5,380 new jobs, an increase of 30 percent.

“I am delighted to join the Starbucks Board of Directors,” said Dillon. “Starbucks and Ulta Beauty share many attributes: incredibly passionate customers, compelling loyalty programs, exciting growth strategies that put the customer at the center of all we do, and tremendous care for our people. I look forward to working with Howard Schultz, the Starbucks Board and leadership team to contribute to the future success of this great company.”

Prior to joining Ulta Beauty, Dillon served as president and CEO of U.S. Cellular.  During her tenure, U.S. Cellular expanded its product and service offerings and strengthened new channels of distribution, while maintaining industry-leading customer satisfaction levels. Dillon previously served as global chief marketing officer and executive vice president for McDonald’s Corporation, where she led the company’s worldwide marketing efforts and global brand strategy, including a focus on children’s well-being initiatives. Prior to that, she served as president of PepsiCo’s Quaker Foods division.

Dillon serves on the Ulta Beauty Board of Directors and previously served on the Board of Directors for Target Corporation and U.S. Cellular.

Dillon is an active member of the Chicago community and believes strongly in giving back as a mentor to other female business leaders.  She currently serves on the Boards of several non-profits, including the Ounce of Prevention Fund, World Business Chicago, the Civic Committee of the Commercial Club of Chicago, and Loyola Academy.

Named to Fortune’s Business Person of the Year list (#6) in 2015, Dillon is a proud first-generation college graduate born in Chicago. Dillon received her Bachelor of Science degree in marketing and Asian studies from the University of Illinois at Chicago. Dillon has four children, and along with her husband Terry, resides in the Chicago area.

Starbucks also announced the upcoming retirement of Board member Olden Lee, retired executive of PepsiCo, immediately prior to Starbucks 2016 Annual Meeting in March.  Lee has served on the Starbucks Board of Directors since 2003.

For more information on this news release, contact us.

SOURCE: Starbucks Corporation

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Starbucks Corporation announces that Mary Dillon, CEO of Ulta Beauty was elected to the Starbucks Board of Directors

Starbucks Corporation announces that Mary Dillon, CEO of Ulta Beauty was elected to the Starbucks Board of Directors

Hand-printed art locally relevant for each military branch incorporated into the design of each Military Family Store

SEATTLE, 2015-11-12 — /EPR Retail News/ — A small carving tool skimmed a flat, rubber surface containing a hand-drawn image of combat boots.

Artist Jennifer Ament gently guided the chisel, creating grooves as she outlined her design. Next, she rolled black ink over the pattern and placed a cream-colored paper over the design. Applying pressure to the back, she made a one-of-a-kind print.

Ament repeated the linocut printmaking technique hundreds of times as she created original art for Starbucks Military Family Stores.

Starbucks Military Family Stores employ many baristas and managers who are veterans or military spouses. The stores work with military and veterans service organizations in each community where they’re located. The company has already dedicated 16 Military Family Stores, with plans to have 30 across the country by the end of 2016. Hand-printed art that is locally relevant for each military branch is incorporated into the design of each store.

“We are fortunate to have so many partners (employees), family and friends who are veterans, military spouses and active-duty reservists. We wanted to honor their service and sacrifice,” said Lara Behnert, senior manager, Starbucks Creative Studio art programs.  “Starbucks is always looking to make connections with our customers through art, and to help them discover local artists.”

The studio approached Ament, a Seattle-based artist, to design and handcraft the artwork for Military Family Stores because her style is both “gentle and powerful,” Behnert said. Ament was also a natural choice because she has many relatives who served in the military. Ament is the great granddaughter, granddaughter, daughter-in-law, niece, and sister of servicemen.

“I feel incredibly grateful and excited to be a part of this program,” she said.

Ament, whose family is from a small town in upstate New York, recalled the awe of watching large military parades her community used to have to welcome home those who served. In contrast today, a study by Blue Star Families found only 12 percent of the U.S. public truly understands the service and sacrifice of the one percent who have served in the military.

“I want people in military communities who see this art to feel gratitude for fellow servicemen and women,” said Ament. “I also want them to feel a sense of community and comfort.”

A service member holding a child’s hand at a parade, an American flag waving, a parachute landing with a crate of supplies, and a majestic eagle swooping in for a landing are among the 22 distinct images Ament produced.

“I really like the depiction of the enlisted Marine Corps cover – the Marines refer to hats as covers – and I think the Huey (helicopter) is one of the coolest pieces of all,” said Mick James, a Marine and manager with the Starbucks Global Responsibility team.

The artist and creative studio consulted several Starbucks partners from each branch of service, through every step of the process.

“When you walk up to the art it has a gallery feel to it,” James said. “I hope it brings people together and builds relationships between civilians and military in the community, and that it prompts people to ask questions about the art – what were we trying to achieve, what is this representative of? If we can have conversations like that, I think we’ll be able to go a long way toward bridging the military-civilian divide.”

Download video for media use

For more information on this news release, contact the Starbucks Newsroom.

Media Contacts

Global
Phone: 206 318 7100
Email: press@starbucks.com

SOURCE:  Starbucks Corporation

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Hand-printed art locally relevant for each military branch incorporated into the design of each Military Family Store

Hand-printed art locally relevant for each military branch incorporated into the design of each Military Family Store

Starbucks Corporation announces the appointment of Gerri Martin-Flickinger as CTO effective November 2

Former Adobe Senior Executive to join Starbucks Senior Leadership Team to Lead Global Technology and IT Organization

SEATTLE, 2015-10-8 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced it has appointed Gerri Martin-Flickinger as chief technology officer effective November 2. In this role, Martin-Flickinger will lead the global IT function and play a key role in shaping the technology agenda across the Starbucks business.  Most recently, she served as Adobe’s senior vice president and chief information officer, where she oversaw Adobe’s global Information Technology team and played a key role in enabling Adobe’s transformation to a cloud-based business.

“Gerri is a technologist at heart and has a 30-year track record of leveraging technology-based solutions to drive business value. As we continue to shape our global technology agenda at Starbucks, we needed leadership talent with deep experience in cloud, big data analytics, mobile and security to take us to the next level.  As we searched for that leader, Gerri stood out as someone who has years of experience in Silicon Valley and brings deep management and technical expertise to help us navigate the future,” said Kevin Johnson, Starbucks president and chief operating officer.

Martin-Flickinger will report to Johnson and serve as a member of Starbucks senior leadership team. As chief technology officer, Martin-Flickinger will lead the company’s IT organization, and will champion the next phase of innovation and growth for Starbucks.

“I’ve had the pleasure of working with an amazing team at Adobe, and I look forward to taking this next step in my career as I assume the role of chief technology officer at Starbucks, a brand that I love. The Pacific Northwest is where I was raised, so I am pleased to be returning there. I am thrilled to be joining the strong team already in place at Starbucks,” said Martin-Flickinger. “Starbucks is on the cusp of entering into its next phase of technology leadership, and I am honored to be working alongside Starbucks strong IT management team to map out our long-term strategy.”

Martin-Flickinger will bring 30 years of experience leading large-scale global IT organizations for companies experiencing explosive growth through acquisition, global expansion and implementing new business models. Her expertise includes leading organizations through transformational change, connecting IT to the needs of the business and aligning IT costs. Before joining Adobe, Martin-Flickinger was CIO of VeriSign, where she oversaw corporate information technology services for the company’s 60 offices worldwide. Prior to VeriSign, she served as CIO for Network Associates, Inc. and McAfee Associates, Inc. Before joining McAfee, Martin-Flickinger held several senior systems roles at Chevron Corporation, including serving as process consultant to Chevron’s executive staff.

Martin-Flickinger has received a number of awards and accolades over her 30-year career. Most recently, she was honored by the Silicon Valley Business Journal with the Judges’ Choice award for her integral role with Adobe’s successful shift to a cloud-services company. Additionally, she was honored as a 2015 CIO Leader by HMG Strategy and was named to the 25 of the Smartest Women on Twitter 2015. Martin-Flickinger holds a bachelor’s degree in computer science from Washington State University. She is a member of Wall Street Journal CIO Network and Sierra Ventures CIO Advisory Board.

Martin-Flickinger will relocate to the Seattle area with her family.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-qualityarabica coffee. Today, with more than 22,000 stores around the globe, Starbucks 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 our stores or online at news.starbucks.com and Starbucks.com.

For more information on this news release, contact us.

 

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Starbucks Corporation announces the appointment of Gerri Martin-Flickinger as CTO effective November 2

Starbucks Corporation announces the appointment of Gerri Martin-Flickinger as CTO effective November 2

Starbucks Corporation priced an underwritten public offering of $850 million senior notes

SEATTLE, 2015-6-4 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced that it has priced an underwritten public offering of senior notes.  The company plans to use the net proceeds from the offering of $500 million of 2.700% Senior Notes due 2022 and $350 million of 4.300% Senior Notes due 2045 for general corporate purposes, which are expected primarily to include the redemption of the company’s outstanding 6.250% Senior Notes due 2017.  The net proceeds may also be used for repurchases of Starbucks common stock under the company’s ongoing share repurchase program, business expansion, payment of cash dividends on Starbucks common stock, or the financing of possible acquisitions. The offering of the senior notes is expected to close on June 10, 2015, subject to customary closing conditions.

BofA Merrill Lynch, Citigroup and Morgan Stanley are serving as the joint book-running managers of the offering.  The offering is being made under an automatic shelf registration statement filed with the Securities and Exchange Commission (“SEC”) on September 3, 2013.  The offering may be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from:

BofA Merrill Lynch
dg.prospectus_requests@baml.com
800-294-1322

Citigroup
prospectus@citi.com
800-831-9146

Morgan Stanley
prospectus@morganstanley.com
866-718-1649

An electronic copy of the registration statement and prospectus supplement, together with the prospectus, is available on the SEC’s website at www.sec.gov.

This press release does not constitute an offer to sell nor a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. 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 news.starbucks.com or starbucks.com.

Forward-Looking Statements

Certain statements contained in this release are “forward-looking statements” within the meaning of applicable securities laws and regulations, including statements about the expected closing of a public offering or senior notes and the use of proceeds of such offering. Such forward-looking statements are based on current management expectations and satisfactions of certain conditions that are subject to various risks and uncertainties, including market conditions and those risks detailed in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Starbucks Annual Report on Form 10-K for the fiscal year ended September 28, 2014, and the prospectus and prospectus supplement delivered in connection with the public offering of senior notes discussed in this release. The company assumes no obligation to update any of these forward-looking statements.

For more information on this news release, contact Starbucks Investor Relations – JoAnn DeGrande or Starbucks Media Relations – Linda Mills.

 

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Starbucks Corporation priced an underwritten public offering of $850 million senior notes

Starbucks Corporation priced an underwritten public offering of $850 million senior notes

Starbucks Corporation to present at the Bernstein Strategic Decisions Conference on May 27, 2015

SEATTLE, 2015-5-15 — /EPR Retail News/ — Starbucks Corporation (NASDAQ:SBUX) today announced the company will present at the Bernstein Strategic Decisions Conference on Wednesday, May 27, 2015 at 3:00 p.m. ET.

A live webcast of the presentation will be available at http://investor.starbucks.com. An archived webcast will also be available on Starbucks website, at the same URL.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 21,000 stores around the globe, Starbucks 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 our stores or online atStarbucks.com and news.starbucks.com

For more information on this news release, contact us.

Starbucks Corporation reported financial results for its 13-week fiscal second quarter and 26-week fiscal year to date ended March 29, 2015

  • Comp Store Sales Rise 7% Globally; 7% in the Americas and 12% in CAP; Global Traffic Up 3%
  • Net Revenues Rise 18% to a Q2 Record $4.6 Billion
  • GAAP Operating Income Up 21% to a Q2 Record $778 Million; Non-GAAP Operating Income Up 23% to $789 Million
  • Channel Development Revenues Up 16% and Operating Income Up 23%
  • Earnings Per Share Jump 18% to a Split-Adjusted Q2 Record $0.33 Per Share

SEATTLE, 2015-4-24 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal second quarter and 26-week fiscal year to date ended March 29, 2015. All per-share data has been adjusted for the stock split announced on March 18, 2015 and effected on April 9, 2015. Q2 FY15 GAAP results include Starbucks Japan acquisition-related items; non-GAAP results exclude these items. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release.

Q2 Fiscal 2015 Highlights:

• Global comparable store sales increased 7%, with a 3% increase in traffic

  •  Americas comp sales increased 7%, with a 2% increase in traffic
  •  CAP comp sales increased 12%, driven by a 10% increase in traffic
  •  EMEA comp sales increased 2%, driven by a 2% increase in traffic

• Consolidated net revenues increased 18% to $4.6 billion

• Channel Development revenues grew 16% to $428.0 million

• Consolidated operating income of $777.5 million, up 21% over Q2 of FY14

Non-GAAP operating income of $789.4 million, up 23% over Q2 of FY14

• Consolidated operating margin of 17.0% increased 40 basis points over Q2 of FY14

Non-GAAP operating margin of 17.3% increased 70 basis points over Q2 of FY14

• GAAP and non-GAAP earnings per share of $0.33, up 18% over Q2 of FY14

• The company opened 210 net new stores in Q2, including its 5,000th store in China/Asia Pacific, bringing total stores worldwide to 22,088

• Year over year comp store transactions increased over 10 million in the U.S., over 14 million globally

• The company added a record 1.3 million new My Starbucks Rewards members in Q2 – bringing total active membership to 10.3 million – and realized a Q2 record $1.1 billion in Starbucks Card loads

View detailed financial data here

“Starbucks record financial and operating performance in Q2 was driven by our people all around the world yet woven together by one common thread – industry leading partner (employee) facing and customer facing innovation,” said Howard Schultz, Starbucks chairman and ceo.  “Innovation is the force that will continue to drive our business and enable us to expand and increase revenues and profits – always through the lens of humanity – long into the future.”

“Starbucks Q2 represented another quarter of strong revenue growth and record operating and financial performance all around the world, and despite significant foreign exchange headwinds” said Scott Maw, Starbucks cfo. “As we enter the second half of 2015 – and look to the future – we are ideally positioned to continue benefiting from the investments we are making in our people, in innovation and in our stores – and to continue delivering world class returns to our shareholders.”

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 21,000 stores around the globe, Starbucks 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 our stores or online at Starbucks.com and news.starbucks.com

For more information on this news release, contact us.

Starbucks Corporation’s Board of Directors declared two-for-one stock split; trading on a split-adjusted basis begins on April 9, 2015

Infographic

SEATTLE, 2015-3-20 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced that its Board of Directors has declared a two-for-one stock split.

Shareholders of record as of March 30, 2015 will receive one additional share for each share held on the record date. The new shares will be payable on April 8, 2015. Starbucks common stock will begin trading on a split-adjusted basis on April 9, 2015. This is the sixth two-for-one split of the company’s common stock since its initial public offering in 1992; the previous stock split occurred in October 2005.

“On behalf of our board of directors, the Starbucks leadership team and the 300,000 partners who wear the Green Apron globally, I am proud to announce this two-for-one stock split, the sixth in our 23-year history as a public company,” said Howard Schultz, chairman and ceo of Starbucks Corporation. “This split is a direct reflection of the past seven years of increasing shareholder value, enhancing the liquidity of our shares, and building an attractive share price. It also takes place at a time when Starbucks shareholders are experiencing an all-time high in value as we continue to deliver world-class customer service and, in turn, record profits and revenue.”

“Adjusting for the stock split effectively has the impact of modestly increasing our earnings guidance for the second quarter and for fiscal 2015,” noted Scott Maw, chief financial officer of Starbucks Corporation.

On a split adjusted basis, the company’s previously communicated GAAP and non-GAAP earnings per share targets equate to GAAP EPS of $0.32 and a non-GAAP range of $0.32 to $0.33 for the second quarter of fiscal 2015, and a GAAP range of $1.77 to $1.79 and a non-GAAP range of $1.55 to $1.57 for the full fiscal year 2015. Due to this adjustment, the company is updating its GAAP and non-GAAP Q2 FY15 and full year FY15 EPS targets; it is neither updating nor reaffirming any other FY15 targets at this time. A reconciliation of GAAP to non-GAAP measures can be found at the end of this release.

Answers to frequently asked questions about the stock split can be found on the Investor Relations section of the company’s website at http://investor.starbucks.com.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 21,000 stores around the globe, Starbucks 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 our stores or online at Starbucks.com and news.starbucks.com.

Forward-Looking Statements

This release includes forward-looking statements regarding the liquidity of our shares, our share price, profits, revenues and projected earnings per share results.  These forward-looking statements are based on currently available operating, financial, and competitive information and are subject to various risks and uncertainties.  These statements are based upon information available to Starbucks as of the date hereof, and Starbucks actual results or performance, the liquidity of its shares or its share price could differ materially from those stated or implied due to risks and uncertainties associated with its business. These risks and uncertainties include, but are not limited to, fluctuations in U.S. and international economies and currencies, our ability to preserve, grow and leverage our brands, potential negative effects of material breaches of our information technology systems if any were to occur, costs associated with, and the successful execution of, the company’s initiatives and plans, the acceptance of the company’s products by our customers, the impact of competition, coffee, dairy and other raw material prices and availability, 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 the Starbucks Annual Report on Form 10-K for the fiscal year ended September 28, 2014. The company assumes no obligation to update any of these forward-looking statements.

For more information on this news release, contact us.

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Starbucks Corporation's Board of Directors declared two-for-one stock split; trading on a split-adjusted basis begins on April 9, 2015

Starbucks Corporation’s Board of Directors declared two-for-one stock split; trading on a split-adjusted basis begins on April 9, 2015

Kevin Johnson appointed as president and chief operating officer Starbucks Corporation

Starbucks board member and former technology executive to join Starbucks management team and lead global operations

SEATTLE, 2015-1-23 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced it has appointed Kevin Johnson as president and chief operating officer. Johnson has been a Starbucks board member since 2009, and will now take a central operating role effective March 1.

“As a member of our board of directors, Kevin has worked closely with me for the past six years as a sounding board and collaborator on many of the strategies we are now pursuing. Kevin’s deep management experience and technology background will help further propel Starbucks efforts in partner (employee) and customer-facing innovations as we accelerate our global growth agenda,” said Howard Schultz, Starbucks chairman, president and ceo. “I am honored that Kevin is joining Starbucks in this capacity, particularly at this important time for our company, and I am looking forward to working with him and our strongest management team in the company’s 44-year history.”

Johnson will report to Schultz and serve as a member of Starbucks senior leadership team, as well as continue on the Starbucks board of directors. He ceased membership on all Starbucks board committees prior to this appointment.

As president and chief operating officer, Johnson will lead the company’s global operating businesses across the Americas, EMEA (Europe Middle East and Africa), and China/Asia Pacific, as well as Starbucks supply chain, information technology, and mobile and digital platforms. Reporting to Johnson will be Cliff Burrows, group president, U.S., Americas and Teavana; John Culver, group president, China /Asia Pacific, Channel Development  and Emerging Brands; as well as other senior leaders responsible for Starbucks supply chain, mobile and digital, and information technology organizations.

Earlier this month, Starbucks announced that Starbucks chief operating officer and 23-year partner Troy Alstead will take a sabbatical beginning March 1 to spend more time with his family. Over the next month, Alstead will work to immerse Johnson into his levels of responsibility as they work together to ensure a smooth transition.

“I’ve had the pleasure of working closely with Howard, Troy and Starbucks senior leadership team for many years, and I am delighted to extend that relationship even deeper to work closely with our partners in operations, supply chain, technology and mobile and digital teams to drive our aggressive growth plans,” said Johnson. “Over the past six years I have gotten to know the company well and I look forward to extending my 33 years of operating experience to help propel Starbucks to the next decade of growth and innovation. I am honored and humbled to join Starbucks, a company that I love, during this important time.”

Johnson will bring broad leadership capacity to Starbucks. He served as chief executive officer of Juniper Networks, Inc., from September 2008 through December 2013. Prior to that, Johnson served as the president of the Platforms Division at Microsoft Corporation and was a member of Microsoft’s senior leadership team and held a number of senior executive positions over the course of his 16 years at Microsoft. Prior to joining Microsoft in 1992, he worked for International Business Machine Corp.’s systems integration and consulting business. In 2008, Johnson was appointed by President George W. Bush to the National Security Telecommunications Advisory Committee (NSTAC) where he served through the end of 2013.

Johnson resides in Seattle and will be based at the Starbucks Support Center beginning March 1.

Contacts:

Investor Relations
JoAnn DeGrande
206-318-7118
investorrelations@starbucks.com

Media

Jim Olson
206-318-7100
press@starbucks.com

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabicacoffee. Today, with more than 21,000 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 and www.news.starbucks.com.

For more information on this news release, contact us.

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Kevin Johnson appointed as president and chief operating officer Starbucks Corporation

Kevin Johnson appointed as president and chief operating officer Starbucks Corporation

Starbucks Corporation reports its financial results for its 13-week fiscal first quarter ended December 28, 2014

  • Strong Holiday Performance Drives 5% Global Comp Growth, Global Traffic Increases 2%
  • Revenues rise 13% to a record $4.8 billion; EPS of $1.30 includes a gain on the acquisition of Starbucks Japan
  • Record non-GAAP EPS jumps 16% to $0.80 excluding non-routine items
  • Dollars loaded on Starbucks Cards surge 17% year-over-year to a record $1.6 billion
  • Company reaffirms FY15 growth targets

SEATTLE, 2015-1-23 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal first quarter ended December 28, 2014. Q1 FY14 GAAP results include the impact of a litigation credit related to the Kraft arbitration; Q1 FY15 GAAP results include Starbucks Japan acquisition-related items. Non-GAAP results exclude these items. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release.

Q1 Fiscal 2015 Highlights:

• Consolidated net revenues increased 13% to $4.8 billion

• Global comparable store sales increased 5%, with a 2% increase in traffic

Americas comp sales increased 5%, with a 2% increase in traffic

EMEA comp sales increased 4%, driven by a 3% increase in traffic

CAP comp sales increased 8%, driven entirely by increased traffic

• Consolidated operating income reached a record $915.5 million

Non-GAAP operating income of $934.8 million grew 18% over Q1 FY14 non-GAAP operating income

• Consolidated operating margin of 19.1%

Non-GAAP operating margin of 19.5% increased 80 basis points over Q1 FY14 non-GAAP operating margin

• GAAP earnings per share of $1.30

Non-GAAP EPS of $0.80 per share grew 16% over Q1 FY14 non-GAAP EPS

• Comparable store customer transactions increased by nearly 9 million in the U.S., nearly 12 million globally, year-over-year

• The company opened 512 net new stores in Q1, including its first Starbucks Reserve® Roastery and Tasting Room

• Dollars loaded on Starbucks Cards surged to a record $1.6 billion in the quarter, up 17% over prior year Q1

• 1 in 7 Americans received a Starbucks Gift Card in Q1, up from 1 in 8 in Q1 of fiscal 2014

• The company added 896,000 new My Starbucks Rewards members in December and now has over 9 million members

“Starbucks record Q1 fiscal 2015 financial and operating performance was exceptional by every metric and standard,” said Howard Schultz, chairman, president and ceo. “Our reimagined in-store holiday experience that included a vastly expanded assortment of Starbucks Cards, new holiday food, beverage and merchandise offerings and the opportunity to win ‘Starbucks for Life’ resonated powerfully with our customers and drove both increased traffic and tremendous excitement in our stores and around the Starbucks brand,” Schultz added.

“Starbucks results in the first quarter of fiscal 2015 were very strong, with notable growth across the globe,” said Scott Maw, Starbucks cfo. “All segments contributed to our record results in the quarter, with improved traffic growth in the US, record profitability in EMEA and 8% comps in CAP. Our continued ability to drive growth through innovation, operational excellence and our unique customer connection, along with our sharp focus on financial discipline, give us confidence in reaffirming our growth targets for fiscal 2015.”

View detailed financial data here

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 21,000 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 and www.news.starbucks.com.

For more information on this news release, contact us.

Starbucks Corporation to release its first quarter fiscal 2015 financial results after the market close on Thursday, January 22, 2015

SEATTLE, 2015-1-8 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) plans to release its first quarter fiscal 2015 financial results after the market close on Thursday, January 22, 2015, with a conference call to follow at 2:00 p.m. PT.

The conference call will be webcast and can be accessed on the company’s website: http://investor.starbucks.com. A replay of the webcast will be available on the company’s website until end of day Thursday, February 19, 2015.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. 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 http://news.starbucks.com.

Contacts

Investor Relations:
JoAnn DeGrande, 206-318-7118
investorrelations@starbucks.com

Media:
Alisha Damodaran, 206-318-7100
press@starbucks.com

For more information on this news release, contact us.

Starbucks Corporation to host its 2014 Biennial Investor Day on December 4, 2014

SEATTLE, 2014-11-18 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) will host its 2014 Biennial Investor Day on Thursday, December 4, 2014.

Due to limited capacity, attendance is by invitation only, however the event will be webcast and can be accessed on the company’s website: http://investor.starbucks.com. Presentations are scheduled to begin at 8:00 a.m. PT and will continue until approximately 12:00 p.m. PT. Following an afternoon break for onsite tours with senior leadership, the webcast will resume with closing remarks and Q&A at approximately 4:30 p.m. PT and will conclude at approximately 5:30 p.m. PT.

A replay of the webcast will remain accessible through January 2, 2015, on the company’s website: http://investor.starbucks.com.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. 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 Starbucks.com.

Contacts:

Starbucks Contact, Investor Relations:

JoAnn DeGrande

206-318-7118

investorrelations@starbucks.com

Starbucks Contact, Media:

Alisha Damodaran

206-318-7100

press@starbucks.com

For more information on this news release, contact us.

Starbucks Corporation to release its fourth quarter and fiscal year end 2014 financial results after the market close on October 30, 2014

SEATTLE, 2014-10-16— /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) plans to release its fourth quarter and fiscal year end 2014 financial results after the market close on Thursday, October 30, 2014, with a conference call to follow at 2:00 p.m. PT. The conference call will be webcast and can be accessed on the company’s website:http://investor.starbucks.com. A replay of the webcast will be available on the company’s website until end of day Thursday, November 27, 2014.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. 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, online at Starbucks.com and through the Starbucks Newsroom.

Starbucks Contact, Investor Relations:

JoAnn DeGrande
206-318-7118
investorrelations@starbucks.com

Starbucks Contact, Media:

Alisha Damodaran
206-318-7100
press@starbucks.com

For more information on this news release, contact us.

Starbucks Corporation to acquire remaining 60.5% share of Starbucks Coffee Japan, Ltd.

  • Starbucks to purchase remaining 60.5% share of Starbucks Japan in two-step tender offer process
  • Acquisition enables continued elevation of unique Starbucks Experience for customers and partners through coffee, store design and digital and mobile leadership
  • Starbucks to build on more than 1,000 existing stores and nearly 20 years of brand loyalty and trust

SEATTLE, 2014-9-25— /EPR Retail News/ — Starbucks Corporation (Nasdaq: SBUX) today announced that it will acquire the remaining 60.5% share of Starbucks Coffee Japan, Ltd. (Starbucks Japan) that the company currently does not own through a two-step tender offer process, further elevating Starbucks growth and innovation in its second-largest market when measured by retail store sales. The acquisition positions Starbucks to accelerate growth across multiple channels in Japan, including the potential introduction of new concepts, such as Teavana. Before the end of the first quarter of fiscal year 2015, Starbucks expects to have a controlling interest and will consolidate Starbucks Japan into the company’s results. Starbucks expects this transaction will be immediately accretive on a non-GAAP basis when excluding certain items noted later in this release.

Starbucks Japan is a joint venture between Starbucks and Sazaby League that operates Starbucks branded retail stores in Japan. Since the inception of their joint venture agreement in 1995, Starbucks and Sazaby together introduced the coffeehouse experience to Japanese customers and built one of Starbucks top-performing markets globally. Starbucks Japan’s business today is marked by strong brand recognition and deep customer loyalty built through delivering an unparalleled Starbucks Experience. Starbucks stores have been remarkably consistent performers despite ongoing macro-economic challenges in Japan.

“Nearly 20 years ago we opened the first Starbucks store outside of North America in Tokyo’s Ginza district with lines around the block,” said Howard Schultz, chairman, president and ceo of Starbucks Coffee Company. “Japan is a market we know well and care deeply about, with more than 25,000 partners serving millions of customers every week at more than 1,000 stores. Full ownership of Starbucks Japan enables us to build on the amazing foundation of customer trust and loyalty our partners have achieved by continuing to take care of our people, delivering the highest quality coffee and innovating in product, store design and the digital experience.”

“We would like to thank all of our partners in Japan who wear the green apron with pride and deliver the Starbucks Experience to our customers each and every day,” commented John Culver, group president China/ Asia Pacific, Channel Development and Emerging Brands. “Their efforts have built an admired brand and delivered the strong financial results that have made Starbucks Japan a meaningful contributor to the growth and profitability in our China/ Asia Pacific segment. We wish Sazaby the best and sincerely appreciate the operational excellence and leadership that they have contributed to Starbucks Japan’s success and the solid foundation they have helped us build for the opportunities ahead.”

Over the summer, Sazaby approached Starbucks about selling its Starbucks Japan ownership stake to Starbucks and exiting the business in a smooth and orderly manner in advance of the expiration of Starbucks Japan’s retail franchise rights. Starbucks credits Sazaby with establishing and growing Starbucks Japan’s healthy business and is excited for this next chapter in Starbucks Japan’s evolution which will leverage existing infrastructure, systems and expertise to continue disciplined retail growth and expanded presence in other channels.

“It has been an honor for Sazaby to be part of the Starbucks family for nearly two decades,” said Masatoku Mori, President and Representative Director, Sazaby. “We are deeply grateful for the opportunity we have had to introduce the Starbucks Experience and the world’s best coffee to Japan. We have full confidence that Starbucks will continue to care for our dedicated partners, loyal customers and neighboring communities with the same personalized attention and respect they’ve provided since opening our first Starbucks store in 1996.”

The first step in the two-step tender offer process begins with Sazaby tendering its shares, which will commence on September 26th. The purchase price for Sazaby’s 39.5% stake is ¥965 per share, for a total of ¥55 billion, or approximately $505.0 million with Japanese Yen converted into US Dollars at a reference conversion rate of 108.93 JPY to USD. Upon final settlement of this first tender offer step, which is anticipated to occur during the middle of Starbucks first quarter of fiscal 2015, Starbucks will own a controlling 79% interest in Starbucks Japan.

Shortly after the settlement of the first step in the tender offer and following the release of Starbucks Japan’s second quarter earnings results, Starbucks will initiate the second step for the remaining 21% ownership interest held by public shareholders and option holders of Starbucks Japan’s common stock. The tender offer purchase price for this second step is ¥1,465 per share, for a total of ¥44.5 billion, or approximately $408.5 million at the above referenced conversion rate. The public price per share of ¥1,465 represents an 11.6% premium to the 30-day average price of Starbucks Japan’s stock, a 4.7% premium to the closing price on Monday, September 22, and a 51.8% premium to the price Starbucks is paying Sazaby for its shares.

All steps of this tender offer process have been unanimously approved by the boards of directors of Starbucks, Sazaby and Starbucks Japan, and the transactions are expected to be fully completed during the first half of calendar 2015.

The consolidation of Starbucks Japan’s financial results into Starbucks financials will commence after the final settlement of the first step of the tender offer, at which time Starbucks will record the required purchase
accounting adjustments, such as the step-up in fair value of Starbucks existing ownership interest in Starbucks Japan, as well as newly acquired tangible and intangible assets. This information will be included in Starbucks first quarter of fiscal 2015 externally reported financial results.

Financial targets for Starbucks fourth quarter and fiscal year 2014 provided in conjunction with Starbucks 2014 third quarter earnings on July 24th are unchanged as a result of this transaction. Starbucks expects this transaction to be slightly accretive to the company’s fiscal year 2015 non-GAAP financial results, when excluding: 1) an anticipated acquisition-related gain in the first quarter of fiscal 2015 resulting from a fair value adjustment of Starbucks current 39.5% ownership interest in Starbucks Japan; 2) ongoing amortization expense of significant acquired intangible assets related to the transaction; and 3) transaction and integration costs.

The English translation of the press release issued by Solar Japan Holdings G.K., an indirect wholly-owned subsidiary of Starbucks that will acquire the shares and options, will be available later today on Starbucks website at http://investor.starbucks.com. The English translation of the tender offer explanatory statement will be available on September 26, 2014 at http://investor.starbucks.com. The offering documents will be available in Japanese on September 26, 2014 at http://www.smbcnikko.co.jp/stock/tob.

Webcast Information

Howard Schultz, Starbucks chairman, president and ceo, and Troy Alstead, chief operating officer, hosted a webcast (9/23) at 3 pm PDT to discuss this acquisition. The webcast may be accessed on the Investor Relations page of Starbucks website at http://investor.starbucks.com, where it will also be archived until October 21, 2014.

About Starbucks
Since 1971, Starbucks has been committed to ethically sourcing and roasting high-quality arabica coffee. 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.

About Starbucks Japan
Starbucks Japan was formed as a joint venture partnership in 1995 with license agreements that grant it the exclusive right to develop and operate Starbucks coffee stores in Japan, and to use certain trademarks, designs, marks, technologies, and know how. With more than 1,000 stores today, Starbucks Japan employs approximately 25,000 partners. Earlier this year, Sazaby approached Starbucks about their interest in selling their Starbucks Japan ownership stake and exiting the business. As stated in Starbucks Japan’s securities filings, the existing license agreements are set to expire on March 31, 2021 and contain no provision for auto-renewal.

Important Notice

This press release is not, and does not constitute any part of, an offer to sell or purchase, or a solicitation of an offer to sell or purchase, any securities.
The tender offers will be conducted in accordance with the procedures and information disclosure standards prescribed by Japanese law, which may differ from the procedures and information disclosure standards in the United States. In particular, Section 13(e) and Section 14(d) of the U.S. Securities Exchange Act of 1934 and the rules prescribed thereunder do not apply to the tender offers, and the tender offers do not conform to those procedures and standards.

Forward Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “anticipate,” “expect,” “believe,” “could,” “estimate,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based on information available to Starbucks as of the date hereof, and Starbucks actual results or performance could differ materially from those stated or implied, due to risks and uncertainties associated with its business. These risks and uncertainties include, but are not limited to, the failure of the parties to consummate the two-step tender offer due to commercial, regulatory or other reasons, as well as general economic and industry factors such as coffee, dairy and other raw material pricing and availability, successful execution of internal performance and expansion plans, fluctuations in U.S., Japanese and other international economies and currencies, the impact of initiatives by competitors, the effect of legal proceedings, and other risks detailed in the Company’s 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 29, 2013. The Company assumes no obligation to update these forward-looking statements.

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