Starbucks Corp. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Starbucks Corp. has filed its Q1 2024 10-Q report detailing financial performance and position as of December 31, 2023.</b>

AI Summary

STARBUCKS CORP (SBUX) filed a Quarterly Report (10-Q) with the SEC on January 30, 2024. Starbucks Corp. filed a 10-Q report for the period ending December 31, 2023. The filing covers the first quarter of fiscal year 2024. The report includes financial data for the periods October 2, 2023, to December 31, 2023, and October 3, 2022, to January 1, 2023. Key financial statement components such as common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income are detailed for various dates. The company's principal business address is P.O. Box 34067, Seattle, WA 98124-1067.

Why It Matters

For investors and stakeholders tracking STARBUCKS CORP, this filing contains several important signals. This filing provides investors and analysts with the latest financial snapshot of Starbucks, crucial for understanding recent performance and making informed investment decisions. The detailed breakdown of equity accounts and comparative periods allows for trend analysis and assessment of financial health.

Risk Assessment

Risk Level: low — STARBUCKS CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain unusual or high-risk information, reflecting routine financial disclosure.

Analyst Insight

Review the detailed financial statements and segment data within the 10-Q to assess Starbucks' performance trends and identify any significant changes in its financial position.

Key Numbers

• 2023-12-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-01-30 — Filing Date (FILED AS OF DATE)
• 2023-10-02 — Quarter Start Date (Reporting Period)
• 2022-10-03 — Prior Year Quarter Start Date (Reporting Period)

Key Players & Entities

• STARBUCKS CORP (company) — FILER
• 0000829224 (company) — CENTRAL INDEX KEY
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 2024-01-30 (date) — FILED AS OF DATE
• P O BOX 34067 (address) — BUSINESS ADDRESS
• SEATTLE (location) — BUSINESS ADDRESS CITY
• WA (location) — BUSINESS ADDRESS STATE
• 2064471575 (phone) — BUSINESS PHONE

Forward-Looking Statements

• Starbucks will continue to manage its equity structure through share repurchases or dividends, influenced by the changes noted in this 10-Q. (STARBUCKS CORP) — medium confidence, target: 2024-09-27

FAQ

Industry Context

Starbucks operates in the highly competitive global coffeehouse and restaurant industry, characterized by brand loyalty, product innovation, and operational efficiency.

Regulatory Implications

As a publicly traded company, Starbucks is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the balance sheet details for changes in assets, liabilities, and equity from the prior period.
2. Examine disclosures related to cash flows and any significant investing or financing activities.
3. Review any notes to the financial statements for further details on accounting policies or specific transactions.

Key Dates

• 2023-12-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-01-30: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for fiscal year 2024, providing an update compared to the prior year's comparable quarter (Q1 FY2023).

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share SBUX Nasdaq Global Select Mar
• $750 million — Balance as of October 1, 2023 includes $750 million in Senior Notes that matured on October

Filing Documents

• sbux-20231231.htm (10-Q) — 1733KB
• sbux-12312023xexhibit311.htm (EX-31.1) — 10KB
• sbux-12312023xexhibit312.htm (EX-31.2) — 10KB
• sbux-12312023xexhibit32.htm (EX-32) — 7KB
• sbux-20231231_g1.jpg (GRAPHIC) — 516KB
• 0000829224-24-000013.txt (&nbsp;) — 11944KB
• sbux-20231231.xsd (EX-101.SCH) — 73KB
• sbux-20231231_cal.xml (EX-101.CAL) — 103KB
• sbux-20231231_def.xml (EX-101.DEF) — 458KB
• sbux-20231231_lab.xml (EX-101.LAB) — 989KB
• sbux-20231231_pre.xml (EX-101.PRE) — 672KB
• sbux-20231231_htm.xml (XML) — 1831KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1 Financial Statements (Unaudited) 3 Consolidated Statements of Earnings 3 Consolidated Statements of Comprehensive Income 4 Consolidated Balance Sheets 5 Consolidated Statements of Cash Flows 6 Consolidated Statements of Equity 7 Index for Notes to Consolidated Financial Statements 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3 Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4 Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1 Legal Proceedings 36

Risk Factors

Item 1A Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 36

Defaults Upon Senior Securities

Item 3 Defaults Upon Senior Securities 36

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 36

Other Information

Item 5 Other Information 36

Signatures

Signatures 39 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data) (unaudited) Quarter Ended Dec 31, 2023 Jan 1, 2023 Net revenues: Company-operated stores $ 7,755.2 $ 7,083.5 Licensed stores 1,192.1 1,119.5 Other 478.0 510.9 Total net revenues 9,425.3 8,713.9 Product and distribution costs 2,980.6 2,810.2 Store operating expenses 3,851.5 3,665.3 Other operating expenses 150.4 129.3 Depreciation and amortization expenses 365.3 327.1 General and administrative expenses 648.0 580.9 Restructuring and impairments — 5.8 Total operating expenses 7,995.8 7,518.6 Income from equity investees 55.9 57.8 Operating income 1,485.4 1,253.1 Interest income and other, net 33.8 11.6 Interest expense ( 140.1 ) ( 129.7 ) Earnings before income taxes 1,379.1 1,135.0 Income tax expense 354.7 279.8 Net earnings including noncontrolling interests 1,024.4 855.2 Net earnings attributable to noncontrolling interests 0.0 0.0 Net earnings attributable to Starbucks $ 1,024.4 $ 855.2 Earnings per share - basic $ 0.90 $ 0.74 Earnings per share - diluted $ 0.90 $ 0.74 Weighted average shares outstanding: Basic 1,136.6 1,148.5 Diluted 1,140.6 1,152.9 See Notes to Consolidated Financial Statements. 3 Table of Contents STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions, unaudited) Quarter Ended Dec 31, 2023 Jan 1, 2023 Net earnings including noncontrolling interests $ 1,024.4 $ 855.2 Other comprehensive income/(loss), net of tax: Unrealized holding gains/(losses) on available-for-sale debt securities 5.6 2.0 Tax (expense)/benefit ( 1.4 ) ( 0.5 ) Unrealized gains/(losses) on cash flow hedging instruments 35.4 ( 180.7 ) Tax (expense)/benefit ( 1.8 ) 29.5 Unrealized gains/(losses) on net investment hedging instruments ( 25.2 ) ( 64.6 ) Tax (expense)/benefit 6.3 16.3 Translation adjustment and other 183.1 208.9 Tax (expense)/benefit ( 4.7 ) — Reclassification

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1: Summary of Significant Accounting Policies and Estimates Financial Statement Preparation The unaudited consolidated financial statements as of December 31, 2023, and for the quarters ended December 31, 2023 and January 1, 2023, have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, the financial information for the quarters ended December 31, 2023 and January 1, 2023 reflects all adjustments and accruals, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods. In this Quarterly Report on Form 10-Q ("10-Q"), Starbucks Corporation is referred to as "Starbucks," the "Company," "we," "us," or "our." Segment information is prepared on the same basis that our management reviews financial information for operational decision-making purposes. The financial information as of October 1, 2023 is derived from our audited consolidated financial statements and notes for the fiscal year ended October 1, 2023 ("fiscal 2023") included in Item 8 in the fiscal 2023 Annual Report on Form 10-K ("10-K"). The information included in this 10-Q should be read in conjunction with the footnotes and management's discussion and analysis of the consolidated financial statements in the 10-K. The results of operations for the quarter ended December 31, 2023 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 29, 2024 ("fiscal 2024"). Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued guidance expanding segment disclosure requirements. The amendments require enhanced disclosure for certain segment items and required disclosure on how management uses reported measures to assess

View Full Filing

View this 10-Q filing on SEC EDGAR