RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES, General and administrative expenses, as reported (GAAP), International transaction and integration-related items (2), Nestlé transaction and integration-related costs (3), Non-GAAP G&A as a % of total net revenues (4), Diluted net earnings per share, as reported (GAAP), Income tax effect on Non-GAAP adjustments (5). Starbucks' investor day: Four things investors want to hear Transaction and Includes only Starbucks® company-operated stores open 13 months or longer. After submitting your information, you will receive an email. The caption "Product and distribution costs" replaced "Cost of sales" in financial statements published in periods prior to our third quarter of fiscal 2020. This annual global social impact report for the fiscal year 2019 focuses on three areas that are critical to our business, and where we know we can have the most impact: leading in sustainability, creating meaningful opportunities, and strengthening our communities. Today, with more than 32,000 stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Cowen estimates that selling off the Canadian, U.K., Japanese, Austrian and Swiss markets to franchisees could mean $4 billion in pretax cash. The initiative’s objective is to accelerate the transition to a net-zero emissions global economy no later than 2050. Management excludes these items for reasons discussed above. GAAP results in fiscal 2020 and fiscal 2019 include items that are excluded from non-GAAP results. Integration Costs, Nestlé Transaction Shares of Starbucks, which has a $119 billion market value, have risen 15% year to date, as of Tuesday's market close of $101.21. 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. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. It does not incorporate any impacts of COVID-19 on non-operating items, such as interest income, interest expense, income taxes and outstanding shares. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: The following supplemental information is provided for historical and comparative purposes. ... "We have provided scenario-based procedural information to our store teams on how to report … Related Costs, Restructuring, 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. But investors will want to know more about how the transformation will change the average sales volume for a cafe and its labor costs. Starbucks (SBUX) reported Q4 earnings after market close on October 29. As the companies made changes to their top management... | December 17, 2020 Homepage. It may seem like there's already a Starbucks on every corner. We want to hear from you. 53-weeks), Income tax effect on Non-GAAP adjustments (3). SEATTLE--(BUSINESS WIRE)-- Operating margin expanded 510 basis points to 42.7%, primarily due to a business mix shift driven by strength in our ready-to-drink products and the structural change in our single-serve business. Over the summer, U.S. cafes offered a breakfast sandwich made with a sausage substitute from Impossible Foods. Net gain resulting from divestiture of certain operations, Net loss attributable to noncontrolling interests, As a % of 206-318-7100 Q4 Comparable Store Sales of -9% in the U.S. and -3% in China, Demonstrating Sustained Recovery These expenses are anticipated to be completed within a finite period of time. Represents costs associated with our restructuring efforts, primarily severance and asset impairments related to certain company-operated store closures. The Board of Directors declared a cash dividend of $0.45 per share, an increase of 10%, payable on November 27, 2020 to shareholders of record as of November 12, 2020. China is expected to be the key market for new restaurant additions. Voices. These decreases were partially offset by 1,117 net new store openings, or 8% store growth, over the past 12 months. (FOXBUSINESS) -- Big things are brewing at Starbucks. These forward-looking statements do not represent historical data, are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Roughly 800 urban cafes across the U.S. and Canada are expected to close, and the chain plans to build more pick-up locations and drive-thru lanes. Stock analysis for Starbucks Corp (SBUX:NASDAQ GS) including stock price, stock chart, company news, key statistics, fundamentals and company profile. 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. (Projected Millions of Starbucks customers are working from home due to the crisis. Operating income increased 4% to $197.9 million in Q4 FY20, up from $190.9 million in Q4 FY19. 10/29/20. Starbucks' holidays cups are back in 2020 along with new menu items. The company also will close about 300 underperforming stores, according to a … Earnings beat forecasts while same-store sales fell less than expected. “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. Smaller coffee shops may have fared worse during the pandemic, which could work in Starbucks' favor and help it gain market share. As of the end of fiscal year 2020, the company had opened 581 net new stores in China, with 259 net new stores opened in the fourth quarter of fiscal 2020, representing a record-level pace of store development for Starbucks China. One opportunity for growth is oat milk, which is popular with coffee drinkers for its texture and taste even when added to hot drinks. This declaration marks the tenth consecutive annual dividend increase for the company. As part of Starbucks quarterly earnings call, Starbucks president and ceo Kevin Johnson provided specifics on the improving business results and the company’s continued confidence in the path ahead. 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. These measures should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP. All full-year guidance for the metrics noted below is for fiscal year 2021 on a 53-week basis except comparable store sales growth metrics, which are relative to fiscal year 2020 on a 52-week basis. Starbucks … The latest breaking news, ... Man told Starbucks barista his name was Aziz, but she wrote Isis. 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. Starbucks uses only Everpure Water Filtration System in its entire chain of restaurants. 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. The impact of the 53rd week will be reflected in our results for the fourth quarter of fiscal 2021. Starbucks (SBUX) - Get Report shares were higher on Wednesday after the coffee-bar chain named a black director, Mellody Hobson, as non-executive chairwoman. Starbucks thanks frontline workers with free coffee for the month of December, Starbucks to accelerate its deadline to improve its store footprint. Starbucks will hold a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Kevin Johnson, president and ceo, and Patrick Grismer, cfo. Company News. Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourth quarter ended September 27, 2020. “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. At the end of Q4 FY20, approximately 98% of our global company-operated store portfolio was open, with 97% in the U.S. and 99% in China, as well as 99% in Japan and 97% in Canada. Comparable store sales include stores that were temporarily closed as a result of the COVID-19 outbreak, and for the fourth quarter of fiscal 2020, include a 4% benefit related to a temporary value-added tax exemption. Includes only Starbucks® company-operated stores open 13 months or longer. Starbucks is also adding more plant-based options to its menu to appeal to customers who are consuming fewer animal products and to help fulfill its long-term sustainability goals. Other companies may calculate these non-GAAP financial measures differently than the company does, limiting the usefulness of those measures for comparative purposes. 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. 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. Channel Development The pandemic has pushed Starbucks to accelerate its deadline to improve its store footprint four years earlier than expected. But the company is still planning on adding tens of thousands more locations in the coming decade. Fiscal 2021 Outlook Reaffirms Path to Full Recovery. We have always believed Starbucks can – and should – have a positive social impact on the communities we serve. A Division of NBCUniversal. GAAP results in fiscal 2020 and fiscal 2019 include items that are excluded from non-GAAP results. https://www.businesswire.com/news/home/20201029006207/en/, Starbucks Contact, Investor Relations: Nestlé transaction and integration-related costs. Such items may include acquisitions, divestitures, restructuring and other items. Impairment and These results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt to meaningful changes in consumer behavior and the extraordinary efforts of our green apron partners to serve our customers and communities in challenging circumstances,” said Kevin Johnson, president and ceo. As we have grown to more than 28,000 stores in more than 75 countries, so too has our … Follow the latest Starbucks news stories and headlines. 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. Starbucks expects to swing to a loss in its fiscal third quarter as the company predicts it lost as much as $3.2 billion in revenue due to the pandemic. Contact Information and Shareholder Assistance, https://www.businesswire.com/news/home/20201029006207/en/. 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. Shares of Starbucks … 1. total net revenues. One key question, according to Wells Fargo analyst Jon Tower, is whether Starbucks will be looking to upgrade current drive-thru locations with features like digital menu boards and double lanes. 3. In the U.S. and China, limited or full lobby seating was available in approximately 63% and 90% of company-operated stores, respectively. Durga Doraisamy Starbucks' same-store sales in the country are expected to turn positive in the first quarter. Data is a real-time snapshot *Data is delayed at least 15 minutes. All the latest news about Starbucks from the BBC. Management excludes the incremental stock-based compensation award granted in the third quarter of fiscal 2018, and vested in the third quarter of fiscal 2019, for reasons discussed above. Within the U.S. and Canada licensed store portfolios, the remaining temporary closures were predominantly in airport, college and university locations. Represents costs associated with the Global Coffee Alliance with Nestlé. In addition to the GAAP results provided in this release, the company provides certain non-GAAP financial measures that are not in accordance with, or alternatives for, generally accepted accounting principles in the United States. Reggie Borges (1) Corporate and Other store data includes the closure of 12 Teavana® retail stores in the first quarter of fiscal 2019. Besides the name change, there were no other changes in the types of costs reported within the caption. Unlike the U.S. and many European countries, China has been able to avoid a significant surge in new Covid-cases as temperatures cooled. 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