Net Revenues Up 6% to a Record $6 Billion; Global and U.S. Comp Store Sales Up 2%

China Net Revenues Up 30%; China Comps Up 6%

Q1 GAAP EPS of $1.57; Non-GAAP EPS of $0.65 Includes $0.07 Benefit from U.S. Tax Law Change

Company Adds 1.4 Million Active Starbucks RewardsTM Members in the U.S. to 14.2 Million, Up 11% Year-Over-Year

SEATTLE; January 25, 2018 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal first quarter ended December 31, 2017. GAAP results in fiscal 2018 and fiscal 2017 include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.

Q1 Fiscal 2018 Highlights

• Global comparable store sales increased 2%, driven by a 2% increase in average ticket

? Americas and U.S. comp store sales increased 2%, driven by a 2% increase in average ticket

? CAP comp store sales increased 1%, driven by a 1% increase in transactions

? China comp store sales increased 6%, driven by a 6% increase in transactions

• Consolidated net revenues of $6.1 billion grew 6% versus the prior year

• GAAP operating margin of 18.4% declined 140 basis points compared to the prior year; non-GAAP operating margin of 19.2% declined 80 basis points

• GAAP Earnings Per Share of $1.57 included $0.79 of net gain related to the acquisition of East China and a $0.13 net benefit from other items which are excluded from non-GAAP results

? Non-GAAP EPS grew 25% to $0.65 per share and included a $0.07 benefit from changes in the U.S. tax law

• Active membership in Starbucks Rewards in the U.S. grew 11% versus the prior year to 14.2 million, with member spend representing 37% of U.S. company-operated sales, and Mobile Order and Pay representing 11% of U.S. company-operated transactions

• Starbucks Card reached 42% of U.S. and Canada company-operated transactions

• The company opened 700 net new stores globally, bringing total store count to 28,039 across 76 markets

• The company returned a record $2 billion to shareholders in the quarter through a combination of dividends and share repurchases

PDF: Detailed Financial Data

“Starbucks reported another quarter of record financial results in Q1 of fiscal 2018, with consolidated revenues up 6% over last year - up 7% excluding 1% for the impact of streamlining activities in the quarter. China grew revenues 30% in Q1, with the strategic acquisition of East China positioning us to accelerate our growth in the key China market,” said Kevin Johnson, president and ceo. “Today, Starbucks has two powerful, independent but complementary engines driving our global growth, the U.S. and China. Our work to streamline the company is sharpening our focus on our core operating priorities.”

“Starbucks delivered solid revenue and profit growth and our first ever $6 billion revenue quarter in Q1,” said Scott Maw, cfo. “We are laser-focused on accelerating growth in China and driving improvement across the U.S. business as we move into and through the back half of the year, and remain committed to delivering on the long-term targets we announced last quarter.”

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