Exhibit 99.1

Q4 Consolidated Net Revenues Up 11% to a Record $9.4 Billion

Q4 Comparable Store Sales Up 8% Globally; Up 8% in North America; Up 5% in International

Q4 GAAP EPS $1.06; Non-GAAP EPS $1.06 Driven by Strong Global Performance; Reinvention Execution

International Surpasses 20,000 Stores, Propelling Global Count to Record 38,038

Q4 Active U.S. Starbucks® Rewards Membership Reaches 32.6 Million, Up 14% Over Prior Year

SEATTLE; November 2, 2023 – Starbucks Corporation (Nasdaq: SBUX) today reported financial results for its 13-week fiscal fourth quarter ended October 1, 2023. GAAP results in fiscal 2023 and fiscal 2022 include items that 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.

•Global comparable store sales increased 8%, driven by a 4% increase in average ticket and 3% increase in comparable transactions

◦North America and U.S. comparable store sales increased 8%, driven by a 6% increase in average ticket and 2% increase in comparable transactions

◦International comparable store sales increased 5%, driven by a 6% increase in comparable transactions and 1% decline in average ticket; China comparable store sales increased 5%, driven by an 8% increase in comparable transactions and a 3% decline in average ticket

•The company opened 816 net new stores in Q4, ending the period with 38,038 stores: 52% company-operated and 48% licensed

◦At the end of Q4, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 16,352 and 6,806 stores in the U.S. and China, respectively

•Consolidated net revenues up 11%, to a record $9.4 billion, or 12%, excluding a 1% unfavorable impact from foreign currency translation

•GAAP operating margin of 18.2% increased from 14.2% in the prior year, primarily driven by in-store operational efficiencies, sales leverage and pricing. This expansion was partially offset by previously committed investments in store partner wages and higher general and administrative costs related to our Reinvention Plan.

◦Non-GAAP operating margin of 18.2% increased from 15.1% in the prior year

•GAAP earnings per share of $1.06 grew 39% over prior year

◦Non-GAAP earnings per share of $1.06 grew 31% over prior year

•Starbucks Rewards loyalty program 90-day active members in the U.S. increased to 32.6 million, up 14% year-over-year

•Global comparable store sales increased 8%, driven by a 5% increase in average ticket and 3% increase in comparable transactions

◦North America and U.S. comparable store sales increased 9%, driven by a 6% increase in average ticket and 3% increase in comparable transactions

◦International comparable store sales increased 5%, driven by a 5% increase in comparable transactions; China comparable store sales increased 2%, driven by a 4% increase in comparable transactions and 2% decline in average ticket

•Consolidated net revenues up 12%, to a record $36.0 billion, or 14%, excluding a 2% unfavorable impact from foreign currency translation

•GAAP operating margin of 16.3% increased from 14.3% in the prior year, primarily driven by pricing, sales leverage and in-store operational efficiencies. This expansion was partially offset by previously committed investments in store partner wages and higher general and administrative costs related to our Reinvention Plan.

◦Non-GAAP operating margin of 16.1% increased from 15.1% in the prior year

•GAAP earnings per share of $3.58 grew 27% over prior year

◦Non-GAAP earnings per share of $3.54 grew 20% over prior year

“We finished our fourth quarter and full fiscal year strong, delivering on the higher end of our full-year guidance. Our Reinvention is moving ahead of schedule, fueling revenue growth, efficiency and margin expansion,” commented Laxman Narasimhan, chief executive officer. “Notably, we continue to see the positive impact of our Reinvention on our partner and customer experiences, proof points that we can continue to create, grow and strengthen our business while creating value for all. As we enter the current year, in the face of macro uncertainty, we remain confident in the momentum throughout our business and headroom globally. We expect sustained momentum throughout the company for years to come,” Narasimhan added.

“Our strong full fiscal year 2023 performance demonstrated our durable long-term growth and Reinvention plan execution,” commented Rachel Ruggeri, chief financial officer. “We are proud that our full fiscal year 2024 guidance will be grounded on a balance of both revenue growth and margin expansion,” Ruggeri added.

Net revenues for the North America segment grew 12% over Q4 FY22 to $6.9 billion in Q4 FY23, primarily driven by an 8% increase in comparable store sales, driven by a 6% increase in average ticket and a 2% increase in comparable transactions, net new company-operated store growth of 4% over the past 12 months, as well as strength in our licensed store sales.

Operating income increased to $1.6 billion in Q4 FY23 compared to $1.1 billion in Q4 FY22. Operating margin of 23.2% expanded from 18.6% in the prior year, primarily driven by in-store operational efficiencies, sales leverage and pricing. This expansion was partially offset by previously committed investments in store partner wages and benefits.

Net revenues for the International segment grew 11% over Q4 FY22 to $2.0 billion in Q4 FY23, primarily driven by net new company-operated store growth of 12% over the past 12 months as well as growth in our licensed store revenue including higher product sales and royalty revenues. Also contributing to the increase was a 5% increase in comparable store sales, driven by a 6% increase in comparable transactions and a 1% decline in average ticket. These increases were partially offset by an approximately 3% unfavorable impact from foreign currency translation.

Operating income increased to $301.3 million in Q4 FY23 compared to $217.6 million in Q4 FY22. Operating margin of 15.2% expanded from 12.2% in the prior year, primarily driven by lapping prior year amortization expenses and sales leverage. This expansion was partially offset by digital investments.

Net revenues for the Channel Development segment of $486.1 million in Q4 FY23 were relatively flat to Q4 FY22, driven by an increase in revenue in the Global Coffee Alliance partially offset by a decrease in global ready-to-drink revenue.

Operating income increased to $271.2 million in Q4 FY23 compared to $244.6 million in Q4 FY22. Operating margin of 55.8% expanded from 50.6% in the prior year, primarily driven by growth in our North American Coffee Partnership joint venture income.

The company will discuss fiscal year 2024 financial targets during its Q4 FY23 and full year earnings conference call starting today at 7:00 a.m. Eastern Time. The company will also host a Reinvention update and holiday launch later today at 4:00 p.m. Eastern Time. These items can be accessed on the company's Investor Relations website during and after the call and event. The company uses its website as a tool to disclose important information about the company and comply with its disclosure obligations under Regulation Fair Disclosure.

1.In September, the company celebrated five years of the Global Coffee Alliance with Nestlé. The alliance was established in 2018, to combine the coffee expertise and strength of the Starbucks brand with Nestlé’s proprietary coffee platforms, manufacturing and market reach.

2.In September, the company celebrated opening its 20,000th International store in the United Kingdom, marking its 25th anniversary in the market.

3.In September, the company announced Howard Schultz, the company’s modern-day founder and chairman emeritus, would step down from the company's Board of Directors, and Wei Zhang, former Senior Advisor and President of Alibaba Pictures Group, would join the company's Board of Directors.

4.In September, the company announced Molly Liu as executive vice president and co-chief executive officer of Starbucks China.

5.In September, the company announced the opening of its China Coffee Innovation Park, holding the distinction of being designed to be the company's most energy efficient and sustainable coffee manufacturing and distribution center in the world.

6.In October, the company celebrated the 20th year of the iconic Pumpkin Spice Latte, which is the company's most popular seasonal beverage and is enjoyed by customers worldwide every Fall.

7.In Q4 FY23, the company repurchased 3.1 million shares of common stock valued at $301.6 million, bringing total shares repurchased this fiscal year to $1.0 billion; approximately 42.6 million shares remain available for purchase under the current authorization.

8.The board of directors declared a cash dividend of $0.57 per share, payable on November 24, 2023, to shareholders of record on November 10, 2023. The company had 54 consecutive quarters of dividend payouts with CAGR of approximately 20%.

Starbucks will hold a conference call today at 7:00 a.m. Eastern Time, which will be hosted by Laxman Narasimhan, ceo, and Rachel Ruggeri, cfo. The call will be webcast and can be accessed at http://investor.starbucks.com. A replay of the webcast will be available until end of day Friday, December 1, 2023.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 38,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or www.starbucks.com.

Certain statements contained herein and in our investor conference call related to these results are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC, as well as:

•our ability to preserve, grow and leverage our brands;

•the acceptance of the company’s products and changes in consumer preferences, consumption, or spending behavior and our ability to anticipate or react to them; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, platforms, reformulations, or other innovations;

•the costs associated with, and the successful execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments and plans, including our Reinvention Plan;

•the impacts of partner investments and changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts;

•the ability of our business partners, suppliers and third-party providers to fulfill their responsibilities and commitments;

•higher costs, lower quality, or unavailability of coffee, dairy, energy, water, raw materials, or product ingredients;

•the impact of significant increases in logistics costs;

•unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, or deflation;

•inherent risks of operating a global business including geopolitical instability;

•failure to attract or retain key executive or partner talent or successfully transition executives;

•the potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling;

•negative publicity related to our company, products, brands, marketing, executive leadership, partners, board of directors, founder, operations, business performance, or prospects;

•potential negative effects of a material breach, failure, or corruption of our information technology systems or those of our direct and indirect business partners, suppliers or third-party providers, or failure to comply with personal data protection laws;

•our environmental, social and governance (“ESG”) efforts and any reaction related thereto such as the rise in opposition to ESG and inclusion and diversity efforts;

•risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, termination difficulties or costs or impairment in recorded value;

•the impact of foreign currency translation, particularly a stronger U.S. dollar;

•the impact of substantial competition from new entrants, consolidations by competitors, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets;

•the impact of changes in U.S. tax law and related guidance and regulations that may be implemented, including on tax rates and the Inflation Reduction Act of 2022;

•the impact of health epidemics, pandemics or other public health events on our business and financial results, and the risk of negative economic impacts and related regulatory measures or voluntary actions that may be put in place, including restrictions on business operations or social distancing requirements, and the duration and efficacy of such restrictions;

•failure to comply with anti-corruption laws, trade sanctions and restrictions or similar laws or regulations; and

•the impact of significant legal disputes and proceedings, or government investigations.

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

The company's financial results and long-term growth model will continue to be driven by new store openings, comparable store sales growth and operating margin management. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies.

Segment Results (in millions)

 

			Oct 1, 2023						Oct 2, 2022
ASSETS
Current assets:
Cash and cash equivalents			$	3,551.5					$	2,818.4
Short-term investments			401.5						364.5
Accounts receivable, net			1,184.1						1,175.5
Inventories			1,806.4						2,176.6
Prepaid expenses and other current assets			359.9						483.7
Total current assets			7,303.4						7,018.7
Long-term investments			247.4						279.1
Equity investments			439.9						311.2
Property, plant and equipment, net			7,387.1						6,560.5
Operating lease, right-of-use asset			8,412.6						8,015.6
Deferred income taxes, net			1,769.8						1,799.7
Other long-term assets			546.5						554.2
Other intangible assets			120.5						155.9
Goodwill			3,218.3						3,283.5
TOTAL ASSETS			$	29,445.5					$	27,978.4
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Current liabilities:
Accounts payable			$	1,544.3					$	1,441.4
Accrued liabilities			2,145.1						2,137.1
Accrued payroll and benefits			828.3						761.7
Current portion of operating lease liability			1,275.3						1,245.7
Stored value card liability and current portion of deferred revenue			1,700.2						1,641.9
Short-term debt			33.5						175.0
Current portion of long-term debt			1,818.6						1,749.0
Total current liabilities			9,345.3						9,151.8
Long-term debt			13,547.6						13,119.9
Operating lease liability			7,924.8						7,515.2
Deferred revenue			6,101.8						6,279.7
Other long-term liabilities			513.8						610.5
Total liabilities			37,433.3						36,677.1
Shareholders’ deficit:
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,142.6 and 1,147.9 shares, respectively			1.1						1.1
Additional paid-in capital			38.1						205.3
Retained deficit			(7,255.8)						(8,449.8)
Accumulated other comprehensive income/(loss)			(778.2)						(463.2)
Total shareholders’ deficit			(7,994.8)						(8,706.6)
Noncontrolling interests			7.0						7.9
Total deficit			(7,987.8)						(8,698.7)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT)			$	29,445.5					$	27,978.4

The following supplemental information is provided for historical and comparative purposes. 

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. Our non-GAAP financial measures of non-GAAP general and administrative expenses (G&A), non-GAAP operating income, non-GAAP operating income growth, non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP earnings per share exclude the below-listed items and their related tax impacts, as they do not contribute to a meaningful evaluation of the company’s future operating performance or comparisons to the company's past operating performance. The GAAP measures most directly comparable to non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth, non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP earnings per share are general and administrative expenses, operating income, operating income growth, operating margin, effective tax rate and diluted net earnings per share, respectively.

Non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth, non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP earnings per share may have limitations as analytical tools. These measures should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP. Other companies may calculate these non-GAAP financial measures differently than the company does, limiting the usefulness of those measures for comparative purposes.

(1)Certain numbers may not foot due to rounding convention.

(2)Represents costs associated with our restructuring efforts.

(3)The fourth quarter of fiscal 2022 includes amortization expense of acquired intangible assets associated with the acquisition of East China and other expenses associated with the sale of our Evolution Fresh business.

(4)Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates.

(1)Certain numbers may not foot due to rounding convention.

(2)Represents costs associated with our restructuring efforts.

(3)Fiscal 2023 includes transaction-related expenses related to the sale of our Seattle's Best Coffee brand. Fiscal 2022 includes amortization expense of acquired intangible assets associated with the acquisition of East China as well as other expenses associated with our Russia market exit and with the sale of our Evolution Fresh business.

(4)Represents a beneficial return-to-provision adjustment related to the prior year divestiture of certain joint venture operations that also received non-GAAP treatment.

(5)Adjustments were determined based on the nature of the underlying items and their relevant jurisdictional tax rates.