To share in the experience, please visit us in our stores or online at stories.starbucks.com or www.starbucks.com. These forecasts were created before the spread of the virus and were based on information available at the time and on various assumptions that we believe were reasonable. As a part of its ongoing commitment to advancing racial and social equity, Starbucks announced several new actions it will take on its journey to that commitment. All rights reserved. At its biennial investor meeting Wednesday afternoon, the company is expected to present its blueprint to regain customers. The abrupt shift in behavior has meant that more coffee drinkers are brewing their own java at home or visiting Starbucks cafes later in the day for a break. Impairment & A Division of NBCUniversal. While the coffee chain has a partnership with Nestle to sell its coffee beans in grocery stores, it still needs to lure customers back to its cafes. Net revenues for the Americas segment of $4.2 billion in Q4 FY20 were 9% lower relative to Q4 FY19, primarily due to a 9% decrease in comparable store sales as well as lower product sales to and royalty revenues from our licensees as a result of lost sales related to the COVID-19 outbreak. Represents costs associated with our restructuring efforts, primarily severance and asset impairments related to certain company-operated store closures and impairment of an intangible asset. Besides the name change, there were no other changes in the types of costs reported within the caption. Stock analysis for Starbucks Corp (SBUX:NASDAQ GS) including stock price, stock chart, company news, key statistics, fundamentals and company profile. The International segment reported operating income of $179.5 million in Q4 FY20 compared to $262.7 million in Q4 FY19. Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourth quarter ended September 27, 2020. “The guiding principles we established at the onset of the pandemic, combined with our industry-leading digital platform and our ability to innovate rapidly, continue to fuel our recovery and provide confidence in a robust operating outlook for fiscal 2021. In fiscal 2021, Starbucks is projecting annual global same-store sales growth of 18% to 23%, assuming that U.S. dining rooms will be fully reopened by the end of the second fiscal quarter, which ends in March. "While Starbucks could reiterate previously issued long-term EPS growth of 10%+ in 2022 & beyond, we argue the company would be better served by issuing a longer term EPS target given the volatility of lapping COVID-19 impacted quarters," Cowen analyst Andrew Charles said Friday in a preview of investor day. Impairment and Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Generally, these statements can be identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “remain,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Voices. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: The following supplemental information is provided for historical and comparative purposes. Please refer to the reconciliation of GAAP … Shares of Starbucks … Includes only Starbucks® company-operated stores open 13 months or longer. The initiative’s objective is to accelerate the transition to a net-zero emissions global economy no later than 2050. Starbucks is one of many fast-food and casual dining companies that have outperformed the S&P 500 this year — it's risen more than 40% while the S&P is up roughly 20%. The company is unable to reconcile these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts because the company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. As a part of the company's commitment to 100% ethically sourced coffee, Starbucks announced the new Starbucks Digital Traceability tool. By scanning a code on the coffee bag or entering a serial number, the tool transforms each bag of coffee beans into a digital passport, launching coffee lovers on a virtual expedition to meet farmers, roasters and baristas and to explore coffee-growing regions around the world. “I am very pleased with our strong finish to fiscal 2020, underpinned by a faster-than-expected recovery in our two lead growth markets, the U.S. and China. Starbucks' holidays cups are back in 2020 along with new menu items. A replay of the webcast will be available until end of day Friday, November 27, 2020. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: further spread of COVID-19; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, including restrictions on business operations or social distancing requirements and the duration and efficacy of such restrictions; the potential for a resurgence of COVID-19 infections in a given geographic region after it has hit its “peak”; fluctuations in U.S. and international economies and currencies; our ability to preserve, grow and leverage our brands; the ability of our business partners and third-party providers to fulfill their responsibilities and commitments; potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, 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, including the integration of the East China business and the successful expansion of our Global Coffee Alliance with Nestlé; our ability to obtain financing on acceptable terms; the acceptance of the company’s products by our customers, evolving consumer preferences and tastes and the availability of consumer financing; changes in the availability and cost of labor; the impact of competition; inherent risks of operating a global business; the prices and availability of coffee, dairy and other raw materials; the effect of legal proceedings; and the effects of changes in tax laws and related guidance and regulations that may be implemented and other risks detailed in the company filings with the Securities and Exchange Commission, including the “Risk Factors” sections of Starbucks Annual Report on Form 10-K for the fiscal year ended September 29, 2019 and Starbucks Quarterly Report on Form 10-Q for the fiscal quarter ended June 28, 2020. Comparable store sales include stores that were temporarily closed as a result of the COVID-19 outbreak and exclude stores identified for permanent closure. Certain statements contained herein and in our investor conference call related to these results are “forward-looking” statements within the meaning of the applicable securities laws and regulations. Part of Starbucks' recovery plan will likely include flexing its digital capabilities and making its loyal program even more attractive. Durga Doraisamy Corporate and Other primarily consists of our unallocated corporate operating expenses and Evolution Fresh. After submitting your information, you will receive an email. Some trends, like making coffee at home, could stick around longer than the virus. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information. © 2020 CNBC LLC. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 outbreak remain in comparable store sales while stores identified for permanent closure have been removed. Today, with more than 32,000 stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Restructuring, We have always believed Starbucks can – and should – have a positive social impact on the communities we serve. This year, Starbucks' Pumpkin Cream Cold Brew outsold the Pumpkin Spice Latte, its trademark autumn drink. Starbucks has announced plans to become "resource positive" when it comes to carbon, water and waste. Teen learns she has COVID-19 after Starbucks taste test TikTok video. The impact of the 53rd week will be reflected in our results for the fourth quarter of fiscal 2021. The decline was primarily driven by an 8% unfavorable impact of Global Coffee Alliance transition-related activities, including a structural change in our single-serve business, as well as an adverse impact of COVID-19 on the Foodservice business, partially offset by growth in at-home coffee and ready-to-drink products. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information. Management excludes transaction and integration costs and amortization of the acquired intangible assets for reasons discussed above. Management excludes the estimated transition tax on undistributed foreign earnings, the impacts of estimated incremental foreign withholding taxes on expected repatriated earnings and the re–measurement of deferred tax assets and liabilities due to the reduction of the U.S. federal corporate income tax rate for reasons discussed above. (Projected Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates, stores identified for permanent closure and Siren Retail stores. Such items may include acquisitions, divestitures, restructuring and other items. Global comparable store sales declined 9%, driven by a 23% decrease in comparable transactions, partially offset by a 17% increase in average ticket, Americas and U.S. comparable store sales declined 9%, driven by a 25% decrease in comparable transactions, partially offset by a 21% increase in average ticket, International comparable store sales were down 10%, driven by a 15% decline in comparable transactions, partially offset by a 7% increase in average ticket; China comparable store sales were down 3%, with comparable transactions down 7%, partially offset by a 5% increase in average ticket; International and China comparable store sales are inclusive of a benefit from value-added tax exemptions of approximately 2% and 4%, respectively, The company opened 480 net new stores in Q4, yielding 4% year-over-year unit growth, ending the period with 32,660 stores globally, of which 51% and 49% were company-operated and licensed, respectively, Stores in the U.S. and China comprised 61% of the company’s global portfolio at the end of Q4, with 15,337 and 4,706 stores, respectively, Consolidated net revenues of $6.2 billion declined 8% from the prior year primarily due to lost sales related to the COVID-19 outbreak, Lost sales of approximately $1.2 billion relative to the company’s expectations before the outbreak included the effects of modified operations, reduced hours, reduced customer traffic and temporary store closures, GAAP operating margin of 9.0%, down from 16.1% in the prior year primarily due to the COVID-19 outbreak, mainly sales deleverage, material investments in retail partner support and other items; GAAP operating margin was also adversely impacted by the Americas store portfolio optimization expenses, Non-GAAP operating margin of 13.2%, down from 17.2% in the prior year, GAAP earnings per share of $0.33, down from $0.67 in the prior year primarily due to unfavorable impacts related to the COVID-19 outbreak totaling approximately -$0.35 per share, Non-GAAP earnings per share of $0.51, down from $0.70 in the prior year, Starbucks® Rewards loyalty program 90-day active members in the U.S. increased to 19.3 million, up 10% year-over-year, Global comparable store sales declined 14%, driven by a 22% decrease in comparable transactions, partially offset by a 10% increase in average ticket, Americas and U.S. comparable store sales declined 12%, driven by a 21% decrease in comparable transactions, partially offset by an 11% increase in average ticket, International comparable store sales were down 19%, driven by a 23% decline in comparable transactions, partially offset by a 5% increase in average ticket; China comparable store sales declined 17%, driven by a 21% decrease in comparable transactions, slightly offset by a 5% increase in average ticket; International and China comparable store sales are inclusive of a benefit from value-added tax exemptions of approximately 1% and 2%, respectively, Consolidated net revenues of $23.5 billion declined 11.3% from the prior year primarily due to lost sales related to the COVID-19 outbreak, Lost sales of approximately $5.1 billion relative to the company’s expectations before the outbreak included the effects of temporary store closures, modified operations, reduced hours and reduced customer traffic, GAAP operating margin of 6.6%, down from 15.4% in the prior year primarily due to the COVID-19 outbreak, mainly sales deleverage, material investments in retail partner support and other items, Non-GAAP operating margin of 9.1%, down from 17.2% in the prior year, GAAP earnings per share of $0.79, down from $2.92 in the prior year primarily due to unfavorable impacts related to the COVID-19 outbreak totaling approximately -$2.01 per share, Non-GAAP earnings per share of $1.17, down from $2.83 in the prior year, Global comparable store sales growth of 18% to 23%, Americas and U.S. comparable store sales growth of 17% to 22%, International comparable store sales growth of 25% to 30%, China comparable store sales growth of 27% to 32%, Approximately 2,150 new store openings and 1,100 net new Starbucks stores globally, Americas approximately 850 new store openings and approximately 50 net new stores, International approximately 1,300 new store openings and 1,050 net new stores, Approximately 600 net new stores in China, Consolidated revenue of $28.0 billion to $29.0 billion, inclusive of a $500 million impact attributable to the 53, Channel Development revenue of $1.4 billion to $1.6 billion, Consolidated GAAP operating margin of 14% to 15%, Consolidated Non-GAAP operating margin of 16% to 17%, Interest expense of approximately $470 million to $480 million, GAAP and non-GAAP effective tax rates in the mid-20%s, GAAP EPS in the range of $0.32 to $0.37 for Q1 and $2.34 to $2.54 for full year, inclusive of a $0.10 impact attributable to the 53, Non-GAAP EPS in the range of $0.50 to $0.55 for Q1 and $2.70 to $2.90 for full year, inclusive of a $0.10 impact attributable to the 53, Capital expenditures of approximately $1.9 billion. Starbucks (SBUX) - Get Report shares were higher on Wednesday after the coffee-bar chain named a black director, Mellody Hobson, as non-executive chairwoman. The results from Siren Retail operations are not reflected in comparable store sales. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. As we have grown to more than 28,000 stores in more than 75 countries, so too has our … Colder drinks are more likely to be part of an afternoon routine, rather than an early morning ritual. All the latest news about Starbucks from the BBC. [email protected]. The call will be webcast and can be accessed at http://investor.starbucks.com. Net stores opened/(closed) and transferred during the period. Represents costs associated with our restructuring efforts in the U.S. and Canada company-operated businesses. Management excludes these items for reasons discussed above. SEATTLE--(BUSINESS WIRE)-- Certain non-GAAP measures included in this report were not reconciled to the comparable GAAP financial measures because the GAAP measures are not accessible on a forward-looking basis. Q4 GAAP EPS of $0.33; Non-GAAP EPS of $0.51 Reflecting Substantial Improvement from Q3 These net new store openings bring the China total store count to over 4,700 company-operated Starbucks stores. Operating income increased 4% to $197.9 million in Q4 FY20, up from $190.9 million in Q4 FY19. All Rights Reserved. The company will provide additional information regarding its business outlook during its regularly scheduled quarterly earnings conference call today; this information will also be available following the call on the company’s website at http://investor.starbucks.com. Investors will be looking for an update to its long-term outlook, more details on how its store footprint is changing and how it plans to address new consumer behavior. Starbucks commits $10M USD in COVID-19 relief for partners around the world Apr 08, 2020 The Starbucks Foundation Donates More Than $3M to Global COVID-19 Relief Efforts Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. Fiscal 2021 Outlook Reaffirms Path to Full Recovery. Includes only Starbucks® company-operated stores open 13 months or longer. ... "We have provided scenario-based procedural information to our store teams on how to report … News Your source for the latest news from Starbucks. Learn about what is happening in our stores and company–from beverage and food announcements to financial news, partner (employee) and customer experience updates. We want to hear from you. Read the latest details on RADIO.COM. The company committed to setting annual Inclusion and Diversity goals based on retention rates and progress toward achieving Black, Indigenous and People of Color (BIPOC) representation of at least 30% at all corporate levels and at least 40% in all retail and manufacturing roles by 2025. Subsequent to our year-end, on September 30, 2020, we declared a cash dividend of $0.45 per share payable on November 27, 2020 to shareholders of record on November 12, 2020. The unavailable information could have a significant impact on the company’s GAAP financial results. Non-GAAP G&A as a percentage of total net revenues for fiscal years 2019 and 2018 was 6.5% and 6.4%, respectively. Starbucks lost billions of dollars in sales this year due to the coronavirus pandemic, but investors want to know more about the global coffee giant's plans for driving growth in the years to come after the crisis. The GAAP measures most directly comparable to non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth, non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP EPS are general and administrative expenses, operating income, operating income growth, operating margin, effective tax rate and diluted net EPS, respectively. These decreases were slightly offset by 287 net new store openings, or 2% store growth, over the past 12 months. But the pandemic's outsized impact on Starbucks' business could change how the company chooses to present its financial targets. Management excludes restructuring and impairment costs relating to the write-down of certain company-operated stores and intangible assets. Active Starbucks® Rewards Membership in the U.S. Up 10% Year-Over-Year to 19.3 Million Fiscal 2021 Outlook Reaffirms Path to Full Recovery SEATTLE – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourth quarter ended September 27, 2020. But a new wave of restrictions in the U.S. could slow Starbucks' recovery in its home market. Adjustments to reconcile net earnings to net cash provided by operating activities: Income earned from equity method investees, Distributions received from equity method investees, Gain resulting from acquisition of joint venture, Net gain resulting from divestiture of certain retail operations, Loss on retirement and impairment of assets.