Starbucks Invests $2B in Partner Earnings, 250K Receive Bean Stock

TL;DR

**Starbucks is pouring billions into employee benefits and stock, aiming for happier partners and better business.**

AI Summary

Starbucks Corporation filed a DEFA14A on February 7, 2024, highlighting its ongoing investment in employee benefits and compensation. The company reported that 250,000 Starbucks partners received a Bean Stock grant in 2024, and it has awarded $2 billion in additional earnings to partners. Starbucks also stated it invested over 20% of its fiscal year 2023 profits back into partners and stores, increasing wages and improving training. This matters to investors because strong employee satisfaction and retention can lead to better operational performance and customer experience, potentially boosting long-term profitability.

Why It Matters

Investing in employees can reduce turnover, improve service quality, and enhance brand reputation, which are all critical for Starbucks' sustained growth and profitability.

Risk Assessment

Risk Level: low — This filing details positive investments in employees, which generally reduces operational risk and enhances long-term stability.

Analyst Insight

An investor should view these significant investments in employee welfare as a positive indicator for long-term operational stability and potential for sustained growth, suggesting a 'hold' or 'buy' position if other fundamentals align.

Key Numbers

• $2.0B — Additional Earnings Awarded (Amount awarded to Starbucks partners, demonstrating significant investment in compensation.)
• 250,000 — Bean Stock Recipients (Number of partners who received a Bean Stock grant in 2024, indicating broad employee ownership.)
• 20% — FY23 Profit Reinvestment (Percentage of fiscal year 2023 profits invested back into partners and stores, highlighting commitment to employee welfare.)
• 25,000+ — College Achievement Plan Participants (Number of partners receiving upfront tuition coverage, showing investment in education and career development.)
• $250M — College Plan Investment (Total investment in the Starbucks College Achievement Plan, underscoring educational support.)

Key Players & Entities

• Starbucks Corporation (company) — the registrant filing the DEFA14A
• 250,000 (number) — Starbucks partners who received a Bean Stock grant in 2024
• $2 billion (dollar_amount) — additional earnings awarded to partners
• 20% (number) — percentage of fiscal year 2023 profits invested back into partners and stores
• 25,000+ (number) — Starbucks partners receiving 100% upfront tuition coverage through the Starbucks College Achievement Plan
• $250 million (dollar_amount) — invested in the Starbucks College Achievement Plan
• Arizona State University (company) — partner university for the Starbucks College Achievement Plan
• February 7, 2024 (date) — date the additional webpage was posted and the filing was made

Forward-Looking Statements

• Starbucks will see improved employee retention rates in the next fiscal year due to these investments. (Starbucks Corporation) — medium confidence, target: September 2025
• The Starbucks College Achievement Plan will meet or exceed its 2025 goal of 25,000+ graduates. (Starbucks Corporation) — medium confidence, target: December 2025

FAQ

Key Financial Figures

• $2 billion — ve our partners real choice in 2024 and $2 billion 100% of the first 5% of eligible to cus
• $250 million — ent1 2025 goal of 25,000+ graduates and $250 million invested STARBUCKS BENEFITS AND COMPE
• $15 — tail hourly partners hourly partners to $15 per hour in 2022; by the pay increased
• $17.50 — tail partners an average wage of nearly $17.50 per hour and a barista wage range betwe
• $24 — nd a barista wage range between $15 and $24 per hour. With benefits, total hourly c
• $27 — n for baristas equates to approximately $27 per hour OUR INVESTMENTS ARE PAYING O
• $3.4B — PANDED GAAP OPERATING ENHANCED THE PAID $3.4BN IN STATED ALGORITHM ON MARGINS BY 200B

Filing Documents

• d761266ddefa14a.htm (DEFA14A) — 12KB
• g761266dsp002a.jpg (GRAPHIC) — 269KB
• g761266dsp002b.jpg (GRAPHIC) — 230KB
• g761266dsp002c.jpg (GRAPHIC) — 174KB
• g761266dsp004.jpg (GRAPHIC) — 312KB
• g761266dsp005.jpg (GRAPHIC) — 449KB
• g761266g60i60.jpg (GRAPHIC) — 61KB
• 0001193125-24-026705.txt ( ) — 2070KB

From the Filing

DEFA14A UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No.) Filed by the Registrant Filed by a party other than the Registrant CHECK THE APPROPRIATE BOX: Preliminary Proxy Statement Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material under 240.14a-12 STARBUCKS CORPORATION (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) PAYMENT OF FILING FEE (CHECK ALL BOXES THAT APPLY): No fee required Fees paid previously with preliminary materials Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) The following is an additional webpage posted on Starbucks advocacy website on February 7, 2024 STARBUCKS CONTINUES TO INVEST IN THE PARTNER EXPERIENCE AND BRIDGE TO A BETTER FUTURE Comprehensive medical, dental, 250,000 Starbucks partners Starbucks continues to invest in and vision coverage options received a Bean Stock grant our partners future, matching give our partners real choice in 2024 and $2 billion 100% of the first 5% of eligible to customize benefits to meet awarded in additional contributions per pay period their unique needs earnings to partners made by partners participating in Future Roast 401(k) Starbucks has invested more 25,000+ Starbucks partners Starbucks partner-centric than 20% of fiscal year 2023 receive 100% upfront tuition staffing and scheduling will profits back into our partners coverage for their bachelors provide partners more hours and the stores where they degree through the Starbucks that meet their preferences work, increasing wages, College Achievement Plan at improving training programs, Arizona State University and adding new equipment1 2025 goal of 25,000+ graduates and $250 million invested STARBUCKS BENEFITS AND COMPENSATION LEAD THE INDUSTRY1 Starbucks has a history of leadership in According to the results of a recent Benefit improving our partners experience; we Index analysis conducted by AON, Starbucks were among the first U.S. companies to offer continues to deliver more valuable equity grants and among the first retailers benefits for retail hourly partners than any to offer full health benefits for all of the more than 50 other U.S. companies eligible U.S. partners included in the study, inclusive of Fortune 200 and Fortune 500 companies Starbucks moved the wage floor for all U.S. retail Eligible U.S. retail hourly partners hourly partners to $15 per hour in 2022; by the pay increased by at least 3% in end of fiscal year 2025, Starbucks expects to double January 2024, with differentiated pay take home pay in the U.S., versus fiscal year 2020, for eligible tenured partners through more hours and higher wages Starbucks provides U.S. hourly retail partners an average wage of nearly $17.50 per hour and a barista wage range between $15 and $24 per hour. With benefits, total hourly compensation for baristas equates to approximately $27 per hour OUR INVESTMENTS ARE PAYING OFF In Q1 FY24: Average partner hours increased 10%, Turnover of hourly partners leading to a 14% increase in decreased by 6% year-over-year partner sentiment In FY23, Starbucks: + + + + BEAT COMPANYS PUBLICLY EXPANDED GAAP OPERATING ENHANCED THE PAID $3.4BN IN STATED ALGORITHM ON MARGINS BY 200BPS AND PARTNER EXPERIENCE DIVIDENDS AND SHARE COMP, REVENUE, AND NON-GAAP OPERATING ACROSS BUYBACKS EPS GROWTH MARGINS BY 100BPS KEY METRICS 1 Starbucks Raises the Bar with Industry-Leading Employee Benefits, Outperforming Competitors, November 6, 2023 © 2024 Starbucks Corporation.

View Full Filing

View this DEFA14A filing on SEC EDGAR