Exhibit 99.1

Q3 Consolidated Net Revenues of $9.1 Billion, Down 1%; Up 1% in Constant Currency; Up 6% Over Q2

Q3 GAAP and Non-GAAP EPS of $0.93; Action Plans Partially Offset Continued Headwinds

Q3 Active U.S. Starbucks® Rewards Membership Totals 33.8 Million, Up 7% Over Prior Year and Up 3% Over Q2

SEATTLE; July 30, 2024 – Starbucks Corporation (Nasdaq: SBUX) today reported financial results for its 13-week fiscal third quarter ended June 30, 2024. GAAP results in fiscal 2024 and fiscal 2023 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 declined 3%, driven by a 5% decline in comparable transactions, partially offset by a 2% increase in average ticket

◦North America comparable store sales declined 2%, driven by a 6% decline in comparable transactions, partially offset by a 3% increase in average ticket; U.S. comparable store sales declined 2%, driven by a 6% decline in comparable transactions, partially offset by a 4% increase in average ticket

◦International comparable store sales declined 7%, driven by a 4% decline in average ticket and a 3% decline in comparable transactions; China comparable store sales declined 14%, driven by a 7% decline in both average ticket and comparable transactions

•The company opened 526 net new stores in Q3, ending the period with 39,477 stores: 52% company-operated and 48% licensed

◦At the end of Q3, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 16,730 and 7,306 stores in the U.S. and China, respectively

•Consolidated net revenues declined 1% to $9.1 billion, or a 1% increase on a constant currency basis

•GAAP operating margin contracted 60 basis points year-over-year to 16.7%, primarily driven by increased promotional activity, investments in store partner wages and benefits, and deleverage. This contraction was partially offset by pricing and in-store operational efficiencies.

◦Non-GAAP operating margin contracted 70 basis points year-over-year to 16.7% on a constant currency basis

•GAAP earnings per share of $0.93 declined 6% over prior year

◦Non-GAAP earnings per share of $0.93 declined 7% over prior year, or declined 6% on a constant currency basis

•Starbucks Rewards loyalty program 90-day active members in the U.S. totaled 33.8 million, up 7% year-over-year

“Our three-part action plan is beginning to work and driving operational improvements that we expect to improve financial performance,” commented Laxman Narasimhan, chief executive officer. “Our growing culture of focused innovation and relentless execution continues to enhance our capabilities, while helping return the business to sustainable growth,” Narasimhan added.

“Our efficiency efforts, which are tracking ahead of expectations, partially offset investments associated with the cautious consumer environment,” commented Rachel Ruggeri, chief financial officer. “Collectively, our disciplined approach enables us to preserve both balance sheet strength and flexibility, positioning us to successfully navigate through the current macroeconomic environment,” Ruggeri added.

Net revenues for the North America segment increased 1% over Q3 FY23 to $6.8 billion in Q3 FY24, primarily driven by net new company-operated store growth of 5% over the past 12 months, as well as growth in our licensed store business. This increase was partially offset by a 2% decline in comparable store sales, driven by a 6% decline in comparable transactions, partially offset by a 3% increase in average ticket.

Operating income decreased to $1.4 billion in Q3 FY24 compared to $1.5 billion in Q3 FY23. Operating margin of 21.0% contracted from 21.7% in the prior year, primarily driven by investments in store partner wages and benefits, increased promotional activity, and deleverage. This contraction was partially offset by pricing and in-store operational efficiencies.

Net revenues for the International segment declined 7% over Q3 FY23 to $1.8 billion in Q3 FY24, primarily driven by an approximate 5% unfavorable impact from foreign currency translation and a 7% decline in comparable store sales, driven by a 4% decline in average ticket and 3% decline in comparable transactions. Another factor was lower product and equipment sales to, and royalty revenues from, our licensees. This decline was partially offset by net new company-operated store growth of 11% over the past 12 months.

Operating income decreased to $287.5 million in Q3 FY24 compared to $374.5 million in Q3 FY23. Operating margin of 15.6% contracted from 19.0% in the prior year, primarily driven by promotional activities, investments in store partner wages and benefits, and strategic investments. This contraction was partially offset by in-store operational efficiencies.

Net revenues for the Channel Development segment declined 2% over Q3 FY23 to $438.3 million in Q3 FY24, primarily due to a decline in revenue in the Global Coffee Alliance, from SKU optimization and following the sale of Seattle's Best Coffee brand in the prior year. This decline was partially offset by an increase in global ready-to-drink revenue.

Operating income increased to $235.2 million in Q3 FY24 compared to $208.0 million in Q3 FY23. Operating margin of 53.7% expanded from 46.3% in the prior year, primarily due to sales mix shift, lower product costs related to the Global Coffee Alliance, and strength in our North American Coffee Partnership joint venture income.

The company will discuss fiscal year 2024 financial targets during its Q3 FY24 earnings conference call starting today at 2:00 p.m. Pacific Time. These items can be accessed on the company's Investor Relations website during and after the call. 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 May, the company announced new commitments to further support LGBTQIA2+ partners and communities, including an expanded partnership with the National Center for Transgender Equality, providing transgender, non-binary, and gender non-conforming partners support for name and gender marker changes.

2.In May, Satya Nadella resigned from the company's Board of Directors (the “Board”), stating, "I have the utmost confidence in Laxman and our senior leadership team. Their unwavering commitment and strategic acumen assure me that Starbucks is in capable hands, poised for a future filled with innovation and success." Following his departure, the size of the Board was reduced to ten members.

3.In June, the company announced a partnership with Grubhub, rolling out Starbucks Delivery with Grubhub in select U.S. markets, with the goal of national availability in all 50 states by August 2024. Offering customers the convenience of ordering from Starbucks through three leading delivery platforms, Starbucks Delivery is expected to approach $1 billion in U.S. revenue this fiscal year, doubling in just two years and continuing to be a growing part of our business.

4.In June, the company announced Starbucks Studios. This new initiative will produce original entertainment and amplify stories to advance further our company mission to foster human connection and joy, elevating the brand experience.

5.In June, the company launched loyalty partnerships with Marriott Bonvoy and Hilton Honors, in the U.S. and China, respectively. The partnerships allow Starbucks® Rewards members the ability to link accounts and unlock exclusive benefits for travel and coffee, as well as earn additional benefits, creating more value for our members and support program growth.

6.The Board of Directors declared a cash dividend of $0.57 per share, payable on August 30, 2024, to shareholders of record on August 16, 2024. The company had 57 consecutive quarters of dividend payouts with CAGR of approximately 20% over that time period, demonstrating the company's commitment to consistent value creation for shareholders.

Starbucks will hold a conference call today at 2:00 p.m. Pacific 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, September 13, 2024.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 39,000 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 in other filings with the SEC, as well as:

•our ability to preserve, grow, and leverage our brands, including the risk of negative responses by consumers (such as boycotts or negative publicity campaigns) or governmental actors (such as retaliatory legislative treatment) who object to certain actions taken or not taken by the Company, which responses could adversely affect our brand value;

•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;

•our anticipated operating expenses, including our anticipated total capital expenditures;

•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 Triple Shot Reinvention with Two Pumps 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, cocoa, energy, water, raw materials, or product ingredients;

•the impact of adverse weather conditions or natural disasters;

•the impact of significant increases in logistics costs;

•a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers, whether resulting from broader local or global conditions, or dynamics specific to our relationships with such parties;

•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, local labor policies and conditions, including labor strikes and work stoppages, protectionist trade policies, or economic or trade sanctions, and compliance with local trade practices and other regulations;

•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, expansions, initiatives, strategies, investments, plans, 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 data protection laws;

•our environmental, community, and farmer promises 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;

•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.

In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and economic environment. 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)

 

			Jun 30, 2024						Oct 1, 2023
ASSETS
Current assets:
Cash and cash equivalents			$	3,179.1					$	3,551.5
Short-term investments			212.3						401.5
Accounts receivable, net			1,146.0						1,184.1
Inventories			1,854.7						1,806.4
Prepaid expenses and other current assets			415.8						359.9
Total current assets			6,807.9						7,303.4
Long-term investments			274.8						247.4
Equity investments			456.1						439.9
Property, plant and equipment, net			8,080.3						7,387.1
Operating lease, right-of-use asset			8,808.1						8,412.6
Deferred income taxes, net			1,701.6						1,769.8
Other long-term assets			693.7						546.5
Other intangible assets			105.7						120.5
Goodwill			3,183.6						3,218.3
TOTAL ASSETS			$	30,111.8					$	29,445.5
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Current liabilities:
Accounts payable			$	1,586.3					$	1,544.3
Accrued liabilities			2,081.5						2,145.1
Accrued payroll and benefits			708.4						828.3
Current portion of operating lease liability			1,419.2						1,275.3
Stored value card liability and current portion of deferred revenue			1,831.0						1,700.2
Short-term debt			23.1						33.5
Current portion of long-term debt			—						1,818.6
Total current liabilities			7,649.5						9,345.3
Long-term debt			15,551.4						13,547.6
Operating lease liability			8,298.1						7,924.8
Deferred revenue			6,011.0						6,101.8
Other long-term liabilities			539.2						513.8
Total liabilities			38,049.2						37,433.3
Shareholders’ deficit:
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,133.1 and 1,142.6 shares, respectively			1.1						1.1
Additional paid-in capital			223.0						38.1
Retained deficit			(7,561.5)						(7,255.8)
Accumulated other comprehensive income/(loss)			(608.0)						(778.2)
Total shareholders’ deficit			(7,945.4)						(7,994.8)
Noncontrolling interests			8.0						7.0
Total deficit			(7,937.4)						(7,987.8)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY/(DEFICIT)			$	30,111.8					$	29,445.5

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 (GAAP). When provided to investors, our non-GAAP financial measures of non-GAAP general and administrative expenses (G&A), non-GAAP operating income, non-GAAP operating income growth (loss), 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 management does not believe they 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 (loss), non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP earnings per share are G&A, operating income, operating income growth (loss), operating margin, effective tax rate and diluted net earnings per share, respectively.

The Company also presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present the constant currency information, current period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average monthly exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods, excluding related hedging activities. We believe the presentation of results on a constant currency basis in addition to GAAP results helps users better understand our performance, because it excludes the effects of foreign currency volatility that are not indicative of our underlying operating results.

Non-GAAP G&A, non-GAAP operating income, non-GAAP operating income growth (loss), non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP earnings per share and constant currency 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)Represents costs associated with our restructuring efforts.

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