Starbucks Corp. Files 10-Q for Period Ending March 31, 2024

AI Summary

STARBUCKS CORP (SBUX) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Starbucks Corp. filed a 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The report includes data for Entity Operated Units, Franchised Units, and Product and Service categories. Financial data related to Available-for-sale Securities, Cash Flow Hedging, and Net Investment Hedging are presented. The filing also details Accumulated Foreign Currency Adjustment and Reclassification Out of Accumulated Other Comprehensive Income.

Why It Matters

For investors and stakeholders tracking STARBUCKS CORP, this filing contains several important signals. This filing provides investors with the latest financial performance and operational status of Starbucks for the second quarter of fiscal year 2024. Key financial metrics and unit performance data are crucial for assessing the company's growth trajectory and market position.

Risk Assessment

Risk Level: medium — STARBUCKS CORP shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial disclosures. However, the absence of specific financial performance figures in the provided text limits a deeper risk assessment.

Analyst Insight

Investors should review the full 10-Q filing to analyze Starbucks' detailed financial statements, management's discussion and analysis, and risk factors for the period.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-04-30 — Filing Date (FILED AS OF DATE)
• 2024-01-01 — Quarter Start Date (Reporting Period)
• 2023-10-02 — Year-to-Date Start Date (Reporting Period)

Key Players & Entities

• STARBUCKS CORP (company) — FILER
• 0000829224 (company) — CENTRAL INDEX KEY
• 5810 (regulator) — STANDARD INDUSTRIAL CLASSIFICATION
• WA (company) — STATE OF INCORPORATION
• 000-20322 (company) — SEC FILE NUMBER
• 2064471575 (dollar_amount) — BUSINESS PHONE
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-04-30 (date) — FILED AS OF DATE

FAQ

Industry Context

Starbucks operates in the global coffeehouse chain industry, a segment of the food and beverage sector characterized by high competition and evolving consumer preferences.

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. Review the detailed financial statements within the 10-Q for revenue, net income, and cash flow.
2. Analyze the Management's Discussion and Analysis (MD&A) section for insights into performance drivers and future outlook.
3. Examine the risk factors section for any new or updated risks impacting the company.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-30: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the period ending March 31, 2024. Previous filings would cover earlier periods.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share SBUX Nasdaq Global Select Mar
• $0.57 — 1 — 0.6 — 0.6 Cash dividends declared, $0.57 per share — — — ( 645.7 ) — ( 645.7 )
• $0.53 — ) — ( 304.0 ) Cash dividends declared, $0.53 per share — — — ( 608.2 ) — ( 608.2 )
• $1.14 — — ( 1,259.8 ) Cash dividends declared, $1.14 per share — — — ( 1,287.8 ) — ( 1,287.
• $1.06 — ) — ( 495.4 ) Cash dividends declared, $1.06 per share — — — ( 1,216.9 ) — ( 1,216.

Filing Documents

• sbux-20240331.htm (10-Q) — 2300KB
• sbux-3312024xexhibit311.htm (EX-31.1) — 10KB
• sbux-3312024xexhibit312.htm (EX-31.2) — 10KB
• sbux-3312024xexhibit32.htm (EX-32) — 7KB
• sbux-20240331_g1.jpg (GRAPHIC) — 516KB
• 0000829224-24-000024.txt ( ) — 13313KB
• sbux-20240331.xsd (EX-101.SCH) — 75KB
• sbux-20240331_cal.xml (EX-101.CAL) — 109KB
• sbux-20240331_def.xml (EX-101.DEF) — 456KB
• sbux-20240331_lab.xml (EX-101.LAB) — 911KB
• sbux-20240331_pre.xml (EX-101.PRE) — 671KB
• sbux-20240331_htm.xml (XML) — 2286KB

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 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10

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 28

Quantitative and Qualitative Disclosures About Market Risk

Item 3 Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures

Item 4 Controls and Procedures 41

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1 Legal Proceedings 42

Risk Factors

Item 1A Risk Factors 42

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 42

Defaults Upon Senior Securities

Item 3 Defaults Upon Senior Securities 42

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 42

Other Information

Item 5 Other Information 42

Signatures

Signatures 44 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 Two Quarters Ended Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023 Net revenues: Company-operated stores $ 7,052.6 $ 7,142.3 $ 14,807.9 $ 14,225.7 Licensed stores 1,054.5 1,069.5 2,246.6 2,189.0 Other 455.9 508.0 933.8 1,019.1 Total net revenues 8,563.0 8,719.8 17,988.3 17,433.8 Product and distribution costs 2,648.7 2,801.7 5,629.2 5,611.9 Store operating expenses 3,724.1 3,636.0 7,575.6 7,301.3 Other operating expenses 132.8 126.2 283.2 255.4 Depreciation and amortization expenses 371.9 341.9 737.2 669.0 General and administrative expenses 654.6 620.4 1,302.6 1,201.3 Restructuring and impairments — 8.8 — 14.7 Total operating expenses 7,532.1 7,535.0 15,527.8 15,053.6 Income from equity investees 68.0 51.4 123.8 109.2 Gain from sale of assets — 91.3 — 91.3 Operating income 1,098.9 1,327.5 2,584.3 2,580.7 Interest income and other, net 34.1 18.4 67.9 30.0 Interest expense ( 140.6 ) ( 136.3 ) ( 280.7 ) ( 266.0 ) Earnings before income taxes 992.4 1,209.6 2,371.5 2,344.7 Income tax expense 219.9 301.3 574.6 581.1 Net earnings including noncontrolling interests 772.5 908.3 1,796.9 1,763.6 Net earnings attributable to noncontrolling interests 0.1 0.0 0.1 0.0 Net earnings attributable to Starbucks $ 772.4 $ 908.3 $ 1,796.8 $ 1,763.6 Earnings per share - basic $ 0.68 $ 0.79 $ 1.58 $ 1.54 Earnings per share - diluted $ 0.68 $ 0.79 $ 1.58 $ 1.53 Weighted average shares outstanding: Basic 1,132.4 1,148.5 1,134.5 1,148.4 Diluted 1,135.4 1,152.7 1,138.0 1,152.8 See Notes to Consolidated Financial Statements. 3 Table of Contents STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions, unaudited) Quarter Ended Two Quarters Ended Mar 31, 2024 Apr 2, 2023 Mar 31, 2024 Apr 2, 2023 Net earnings including noncontrolling interests $ 772.5 $ 908.3 $ 1,796.9 $ 1,76

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 March 31, 2024, and for the quarters and two quarters ended March 31, 2024 and April 2, 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 and two quarters ended March 31, 2024 and April 2, 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. Certain prior period information on the consolidated statements of cash flows have been reclassified to conform to the current presentation. 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 and two quarters ended March 31, 2024 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

View Full Filing

View this 10-Q filing on SEC EDGAR