Dynex Capital Inc
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Financials : Mortgage Real Estate Investment Trusts (REITs) | Small Cap Value
Company profile

Dynex Capital, Inc. is an internally managed mortgage real estate investment trust (REIT), which primarily invests in residential and commercial mortgage-backed securities (MBS). The Company's objective is to provide attractive risk-adjusted returns to its shareholders over the long term that are reflective of a leveraged, high quality fixed income portfolio with a focus on capital preservation. The Company seeks to provide returns to its shareholders primarily through the payment of regular dividends and through capital appreciation of its investments. The Company primarily invests in Agency MBS, including residential MBS (RMBS), commercial MBS (CMBS) and CMBS interest-only (IO) securities. The Company also have an investment in non-Agency MBS, which consist mainly of CMBS IO.

Price
Delayed
$16.20
Day's Change
0.15 (0.93%)
Bid
--
Ask
--
B/A Size
--
Day's High
16.27
Day's Low
16.11
Volume
(Light)

Today's volume of 300,057 shares is on pace to be much lighter than DX's 10-day average volume of 976,522 shares.

300,057

Starbucks Reports Q2 Fiscal 2022 Results

4:09 pm ET May 3, 2022 (BusinessWire) Print

Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal second quarter ended April 3, 2022. GAAP results in fiscal 2022 and fiscal 2021 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.

Q2 Fiscal 2022 Highlights

Global comparable store sales increased 7%, driven by a 4% increase in average ticket and a 3% increase in comparable transactions North America and U.S. comparable store sales increased 12%, driven by a 7% increase in average ticket and a 5% increase in comparable transactions International comparable store sales decreased 8%, driven by a 5% decline in average ticket and a 3% decline in comparable transactions; China comparable store sales decreased 23%, driven by a 20% decline in comparable transactions and a 4% decline in average ticket International and China comparable store sales include the unfavorable impact of approximately 3% and 4%, respectively, from lapping prior-year value-added tax ("VAT") exemptions in China The company opened 313 net new stores in Q2, ending the period with 34,630 stores globally: 51% company-operated and 49% licensed At the end of Q2, stores in the U.S. and China comprised 61% of the company's global portfolio, with 15,544 stores in the U.S and 5,654 stores in China Consolidated net revenues up 15% to a Q2 record $7.6 billion GAAP operating margin of 12.4% decreased 240 basis points from 14.8% in the prior year, primarily driven by inflationary pressures, mobility restrictions and lockdowns in China and investments in retail store partner wages and benefits, partially offset by pricing in North America and lapping restructuring costs in the prior year Non-GAAP operating margin of 13.0% decreased from 16.0% in the prior year GAAP earnings per share of $0.58 grew 4% over the prior year Non-GAAP earnings per share of $0.59, down from $0.61 in the prior year Starbucks(R) Rewards loyalty program 90-day active members in the U.S. increased to 26.7 million, up 17% year-over-year

"We are single-mindedly focused on enhancing our core U.S. business through our partner, customer and store experiences. Given record demand and changes in customer behavior we are accelerating our store growth plans, primarily adding high-returning drive-thrus, and accelerating renovation programs so we can better meet demand and serve our customers where they are," said Howard Schultz, interim chief executive officer. "The investments we are making in our people and the company will add the capacity we need in our U.S. stores today and position us ahead of the coming growth curve ahead," Schultz added.

"We are confident that the investments in our partners, our stores and our brand that we announced today will deliver returns in excess of historic levels and accelerate our growth long into the future," commented Rachel Ruggeri, chief financial officer.

Q2 North America Segment Results (1)

                                   Quarter Ended                       Change (%)
($ in millions)                       Apr 3, 2022  Mar 28, 2021  
------------------------------------
Change in Comparable Store Sales (2)      12%           9%         
                                          5%           (10)%       
  Change in Transactions
                                          7%            22%        
  Change in Ticket
Store Count                             16,926        16,701               1%
Revenues                               $5,445.7      $4,638.5              17%
Operating Income                        $931.5        $896.4               4%
(1) North America store count, revenues, operating income and operating margin for the quarter ended March 28, 2021, have been restated to conform with current period presentation. North America store count, revenues, operating income and operating margin for the quarter ended March 28, 2021, have been restated to conform with current period presentation.

Net revenues for the North America segment grew 17% over Q2 FY21 to $5.4 billion in Q2 FY22, primarily driven by a 12% increase in company-operated comparable store sales, driven by a 7% increase in average ticket and a 5% increase in transactions, performance of new stores over the past 12 months and strength in our licensed store sales.

Operating income increased to $931.5 million in Q2 FY22, up from $896.4 million in Q2 FY21. Operating margin of 17.1% contracted from 19.3% in the prior year, primarily driven by higher supply chain costs due to inflationary pressure, investments in labor including enhanced store partner wages and higher spend on new partner training, onboarding and support costs to address labor market conditions, as well as lapping prior year government subsidies. This contraction was partially offset by pricing, sales leverage and lower restructuring expenses primarily associated with the North America Trade Area Transformation.

Q2 International Segment Results (1)

                           
                                     -------------------- -------------------- -------------------- -------------------- --------------------
                                           Quarter Ended                                Change (%)
($ in millions)                           Apr 3, 2022           Mar 28, 2021      
------------------------------------
Change in Comparable Store Sales (2)         (8)%                    35%            
                                             (3)%                    26%            
  Change in Transactions
                                             (5)%                    7%             
  Change in Ticket
Store Count                                 17,704                 16,242                   9%
Revenues                                   $1,702.4               $1,637.0                  4%
Operating Income                            $180.7                 $258.1                  (30)%
(1) International store count, revenues, operating income and operating margin for the quarter ended March 28, 2021, have been restated to conform with current period presentation. International store count, revenues, operating income and operating margin for the quarter ended March 28, 2021, have been restated to conform with current period presentation.

Net revenues for the International segment grew 4% over Q2 FY21 to $1.7 billion in Q2 FY22, driven by 1,462 net new store openings, or 9% store growth, over the past 12 months, higher product sales to and royalty revenues from our licensees and the conversion of the Korea market from a joint venture to a fully licensed market in Q4 FY21. These increases were partially offset by an 8% decline in comparable store sales, primarily attributable to COVID-19 related restrictions in China and lapping the prior-year VAT benefit in China, as well as the impact of unfavorable foreign currency translation.

Operating income decreased to $180.7 million in Q2 FY22 compared to $258.1 million in Q2 FY21. Operating margin of 10.6% contracted from 15.8% in the prior year, primarily driven by investments in strategic initiatives and store partner wages, lower government subsidies as well as higher product and distribution costs from a sales mix shift and inflation. This contraction was partially offset by lower amortization expenses.

Q2 Channel Development Segment Results

           
                     -------------------- -------------------- -------------------- -------------------- --------------------
                           Quarter Ended                                Change (%)
($ in millions)           Apr 3, 2022           Mar 28, 2021      
--------------------
Revenues                    $463.1                 $369.9                   25%
Operating Income            $197.9                 $172.6                   15%

Net revenues for the Channel Development segment of $463.1 million in Q2 FY22 were 25% higher relative to Q2 FY21. The increase was primarily driven by growth in the Global Coffee Alliance and the International ready-to-drink businesses.

Operating income increased to $197.9 million in Q2 FY22, up from $172.6 million in Q2 FY21. Operating margin of 42.7% decreased from 46.7% in the prior year, primarily due to business mix shift driven by growth in the Global Coffee Alliance.

Fiscal 2022 Financial Targets

The company will discuss fiscal year 2022 financial targets during its Q2 FY22 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.

Company Updates

In February, the company executed a $1.5 billion bond issuance. The company intends to use the net proceeds from the sale of the securities for general corporate purposes, including repayment of upcoming debt maturities. In February, the company announced expanded hometown efforts in the greater Seattle area to support chronic homelessness, including a nearly $500,000 commitment in programming and partnerships throughout 2022. In March, the company hosted its 30th Annual Meeting of Shareholders. During the virtual meeting, senior leadership and partners from around the world recognized and celebrated the resilience of green apron partners who have continued to serve communities throughout the COVID-19 pandemic. As a part of the Annual Meeting of Shareholders, the company highlighted new sustainability innovations including efforts to reduce waste through innovative reusable cup programs, a new waste and recycling app to help partners navigate complex and unique store recycling guidelines and a pilot program with Volvo Cars to electrify the driving route from the Colorado Rockies to Seattle. In March, also as a part of the Annual Meeting of Shareholders, the company announced that Kevin Johnson, former president and chief executive officer, would retire from his position effective April 4, 2022. The Board appointed founder Howard Schultz as interim chief executive officer, effective April 4, 2022, with Schultz rejoining the company's Board of Directors. Johnson continues to serve as a Starbucks partner and consultant to the company and Board of Directors through the end of fiscal 2022. In April, the company published its 2021 Global Environmental and Social Impact report for the 20th consecutive year. The Board of Directors declared a cash dividend of $0.49 per share, payable on May 27, 2022, to shareholders of record as of May 13, 2022. In April, the company announced a suspension of its share repurchase program. Prior to the announcement, 5.2 million shares of common stock were repurchased in Q2 FY22; approximately 52.6 million shares remain available for purchase under the current authorization.

Conference Call

Starbucks will hold a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Howard Schultz, interim ceo, and other members of Starbucks executive leadership team. 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, June 3, 2022.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 34,000 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.

Forward-Looking Statements

Certain statements contained herein and in our investor conference call related to these results are "forward-looking" statements within the meaning of the 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. These statements include statements relating to trends in or expectations relating to the effects of our existing and any future initiatives, strategies, investments and plans, as well as trends in or expectations regarding our financial results and long-term growth model and drivers; our operations in the U.S. and China; our environmental, social and governance efforts; our partners; economic and consumer trends, including the impact of inflationary pressures; the conversion of several market operations to fully licensed models; our plans for streamlining our operations, including store openings, closures and changes in store formats and models; expanding our licensing to Nestle of our consumer packaged goods and Foodservice businesses and its effects on our Channel Development segment results; tax rates; business opportunities and expansion; strategic acquisitions; our dividends programs; commodity costs and our mitigation strategy; our liquidity, cash flow from operations, investments, borrowing capacity and use of proceeds; continuing compliance with our covenants under our credit facilities and commercial paper program; repatriation of cash to the U.S.; the likelihood of the issuance of additional debt and the applicable interest rate; the continuing impact of the COVID-19 pandemic on our financial results and future availability of governmental subsidies for COVID-19 or other public health events; our ceo transition; our share repurchase program; our use of cash and cash requirements; the expected effects of new accounting pronouncements and the estimated impact of changes in U.S. tax law, including on tax rates, investments funded by these changes and potential outcomes; and effects of legal proceedings. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: further spread of COVID-19 and related disruptions to our business; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, including restrictions on business operations or social distancing requirements, and the duration and efficacy of such restrictions; the resurgence of COVID-19 infections and the circulation of novel variants of COVID-19; fluctuations in U.S. and international economies and currencies; our ability to preserve, grow and leverage our brands; the ability of our business partners and third-party providers to fulfill their responsibilities and commitments; potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; costs associated with, and the successful execution of, the Company's initiatives and plans; new initiatives and plans or revisions to existing initiatives or plans; our ability to obtain financing on acceptable terms; the acceptance of the Company's products by our customers, evolving consumer preferences and tastes and changes in consumer spending behavior; partner investments, changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts; failure to attract or retain key executive or employee talent; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business including any potential negative effects stemming from the Russian invasion of Ukraine; the prices and availability of coffee, dairy and other raw materials; the effect of legal proceedings; and the effects of changes in tax laws and related guidance and regulations that may be implemented and other risks detailed in the company filings with the Securities and Exchange Commission, including in 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. The company assumes no obligation to update any of these forward-looking statements.

Key Metrics

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.

                                                                                                                                                                     STARBUCKS CORPORATION
                                                                                                                                                              CONSOLIDATED STATEMENTS OF EARNINGS
                                                                                                                                                        (unaudited, in millions, except per share data)
                                                                                                                        Quarter Ended                                                                                                                              Quarter Ended
                                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------                               ----------------------------------------------------------------------------------------
                                                         Apr 3,                                                  Mar 28,                                           %                                Apr 3,                                Mar 28,
                                                                             2022                                                                       2021                                                             Change                                                  2022                                                     2021
                                                      ------------------------------------------------                        ------------------------------------------------------                        ------------------------------                       ----------------------------------  -------------------- ----------------------------------
                                                                                                                                                            As a % of total net revenues
                                                                                                                                                                                                                                                                 ----------------------------------------------------------------------------------------
Net revenues:                                                                                                                                                      
                                                                         $  6,276.7                        $        5,653.1           11.0 %                                82.2 %                                84.8 %
  Company-operated stores
                                                           849.5                595.0           42.8               11.1                8.9  
  Licensed stores
                                                           509.4                419.9           21.3                6.7                6.3  
  Other
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
Total net revenues                                       7,635.6              6,668.0           14.5              100.0              100.0  
Product and distribution costs                           2,465.8              1,992.4           23.8               32.3               29.9  
Store operating expenses                                 3,314.7              2,823.3           17.4               43.4               42.3  
Other operating expenses                                   101.7                 87.7           16.0                1.3                1.3  
Depreciation and amortization expenses                     367.7                366.7            0.3                4.8                5.5  
General and administrative expenses                        481.5                464.4            3.7                6.3                7.0  
Restructuring and impairments                                4.4                 23.0          (80.9 )                                 0.1                0.3  
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
                                                         6,735.8              5,757.5           17.0               88.2               86.3  
    Total operating expenses
Income from equity investees                                49.1                 77.1          (36.3 )                                 0.6                1.2  
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
                                                           948.9                987.6           (3.9 )                                12.4               14.8  
    Operating income
Interest income and other, net                              46.3                 17.3          167.6                0.6                0.3  
Interest expense                                          (119.1 )                                (115.0 )                             3.6               (1.6 )                                (1.7 )
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
                                                           876.1                889.9           (1.6 )                                11.5               13.3  
    Earnings before income taxes
Income tax expense                                         201.1                230.5          (12.8 )                                 2.6                3.5  
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
Net earnings including noncontrolling interests            675.0                659.4            2.4                8.8                9.9  
Net earnings attributable to noncontrolling interests        0.5       --                                  nm   --     --  
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
Net earnings attributable to Starbucks                                   $    674.5                        $          659.4            2.3                8.8 %                                 9.9 %
                                                      ==================== ======== ====================                      ==================== ============== ====================
Net earnings per common share - diluted                                  $     0.58                        $           0.56            3.6 %                                          
                                                      ==================== ======== ====================                      ==================== ============== ====================
Weighted avg. shares outstanding - diluted               1,153.9              1,184.8                                        
Cash dividends declared per share                                        $     0.49                        $           0.45                                        
Supplemental Ratios:                                                                                                                                               
Store operating expenses as a % of company-operated store revenues                                                                                                                                                52.8 %                                49.9 %
                                                                                                                     Two Quarters Ended                                                                                                                         Two Quarters Ended
                                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------                               ----------------------------------------------------------------------------------------
                                                         Apr 3,                                                  Mar 28,                                           %                                Apr 3,                                Mar 28,
                                                                             2022                                                                       2021                                                             Change                                                  2022                                                     2021
                                                                                                                                                                                                            ------------------------------
                                                      ------------------------------------------------                        ------------------------------------------------------                                                                             ----------------------------------  -------------------- ----------------------------------
                                                                                                            
Net revenues:                                                                                                                                                      
                                                                         $ 12,999.1                        $       11,379.6           14.2 %                                82.9 %                                84.8 %
  Company-operated stores
                                                         1,700.3              1,208.8           40.7               10.8                9.0  
  Licensed stores
                                                           986.6                829.1           19.0                6.3                6.2  
  Other
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
Total net revenues                                      15,686.0             13,417.5           16.9              100.0              100.0  
Product and distribution costs                           4,992.7              4,041.5           23.5               31.8               30.1  
Store operating expenses                                 6,714.6              5,690.7           18.0               42.8               42.4  
Other operating expenses                                   203.4                179.5           13.3                1.3                1.3  
Depreciation and amortization expenses                     733.8                732.6            0.2                4.7                5.5  
General and administrative expenses                      1,007.3                936.5            7.6                6.4                7.0  
Restructuring and impairments                               (3.1 )                                  95.2         (103.3 )                      --                0.7  
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
                                                        13,648.7             11,676.0           16.9               87.0               87.0  
    Total operating expenses
Income from equity investees                                89.4                159.7          (44.0 )                                 0.6                1.2  
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
                                                         2,126.7              1,901.2           11.9               13.6               14.2  
    Operating income
Interest income and other, net                              46.2                 32.7           41.3                0.3                0.2  
Interest expense                                          (234.4 )                                (235.8 )                            (0.6 )                                (1.5 )                                (1.8 )
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
                                                         1,938.5              1,698.1           14.2               12.4               12.7  
    Earnings before income taxes
Income tax expense                                         447.4                416.5            7.4                2.9                3.1  
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
Net earnings including noncontrolling interests          1,491.1              1,281.6           16.3                9.5                9.6  
Net earnings attributable to noncontrolling interests        0.7       --                                  nm   --     --  
                                                      -------------------- -------- --------------------                      -------------------- -------------- --------------------                                                                           -------------- --------------------                      -------------- --------------------
Net earnings attributable to Starbucks                                   $  1,490.4                        $        1,281.6           16.3                9.5 %                                 9.6 %
                                                      ==================== ======== ====================                      ==================== ============== ====================
Net earnings per common share - diluted                                  $     1.28                        $           1.08           18.5 %                                          
                                                      ==================== ======== ====================                      ==================== ============== ====================
Weighted avg. shares outstanding - diluted               1,165.2              1,183.9                                        
Cash dividends declared per share                                        $     0.98                        $           1.35                                        
Supplemental Ratios:                                                                                                                                               
Store operating expenses as a % of company-operated store revenues                                                                                                                                                51.7 %                                50.0 %

Segment Results (in millions)

North America (1)

                                           Apr 3,                                      Mar 28,                              %                                Apr 3,                                Mar 28,
                                                               2022                                                           2021                                                Change                                                  2022                                                     2021
                                       -------------------------------------------------   -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------
Quarter Ended                                                                                                                              As a % of North America
                                                                                                                                                                                                                                                               total net revenues
--------------------------------------                                                                                                                                                                                    ----------------------------------------------------------------------------------------
Net revenues:                                                                                                               
                                                          $   4,936.3                        $    4,268.4         15.6 %                                90.6 %                                92.0 %
  Company-operated stores
                                             507.0            368.1         37.7                9.3                7.9  
  Licensed stores
                                               2.4              2.0         20.0     --     --  
  Other
                                       -------------------- --------- --------------------                      -------------------- ----------                                                                           -------------- --------------------                      -------------- --------------------
Total net revenues                         5,445.7          4,638.5         17.4              100.0              100.0  
Product and distribution costs             1,564.0          1,213.1         28.9               28.7               26.2  
Store operating expenses                   2,625.4          2,203.1         19.2               48.2               47.5  
Other operating expenses                      47.1             39.2         20.2                0.9                0.8  
Depreciation and amortization expenses       202.0            186.0          8.6                3.7                4.0  
General and administrative expenses           71.3             77.7         (8.2 )                                 1.3                1.7  
Restructuring and impairments                  4.4             23.0        (80.9 )                                 0.1                0.5  
                                       -------------------- --------- --------------------                      -------------------- ----------                                                                           -------------- --------------------                      -------------- --------------------
                                           4,514.2          3,742.1         20.6               82.9               80.7  
   Total operating expenses
                                       -------------------- --------- --------------------                      -------------------- ----------                                                                           -------------- --------------------                      -------------- --------------------
                                                          $     931.5                        $      896.4          3.9 %                                17.1 %                                19.3 %
   Operating income
                                       ==================== ========= ====================                      ==================== ==========                                                                           ============== ====================                      ============== ====================
Supplemental Ratio:                                                                                                         
Store operating expenses as a % of company-operated store revenues                                                                                                         53.2 %                                51.6 %
                                                                                                         
Two Quarters Ended                                                                                                          
--------------------------------------
Net revenues:                                                                                                               
                                                          $  10,150.4                        $    8,553.2         18.7 %                                90.8 %                                91.8 %
  Company-operated stores
                                           1,022.9            756.6         35.2                9.2                8.1  
  Licensed stores
                                               4.7              4.4          6.8     --     --  
  Other
                                       -------------------- --------- --------------------                      -------------------- ----------                                                                           -------------- --------------------                      -------------- --------------------
Total net revenues                        11,178.0          9,314.2         20.0              100.0              100.0  
Product and distribution costs             3,193.4          2,473.5         29.1               28.6               26.6  
Store operating expenses                   5,327.7          4,442.1         19.9               47.7               47.7  
Other operating expenses                      95.3             80.7         18.1                0.9                0.9  
Depreciation and amortization expenses       402.1            374.9          7.3                3.6                4.0  
General and administrative expenses          148.0            148.5         (0.3 )                                 1.3                1.6  
Restructuring and impairments                 (3.1 )                              95.2       (103.3 )                      --                1.0  
                                       -------------------- --------- --------------------                      -------------------- ----------                                                                           -------------- --------------------                      -------------- --------------------
                                           9,163.4          7,614.9         20.3               82.0               81.8  
  Total operating expenses
                                       -------------------- --------- --------------------                      -------------------- ----------                                                                           -------------- --------------------                      -------------- --------------------
                                                          $   2,014.6                        $    1,699.3         18.6 %                                18.0 %                                18.2 %
  Operating income
                                       ==================== ========= ====================                      ==================== ==========                                                                           ============== ====================                      ============== ====================
Supplemental Ratio:                                                                                                         
(1) North America licensed store revenues, total net revenues, product and distribution costs, other operating expenses, total operating expenses and operating income for the quarter ended March 28, 2021, have been restated to conform with current period presentation. North America licensed store revenues, total net revenues, product and distribution costs, other operating expenses, total operating expenses and operating income for the quarter ended March 28, 2021, have been restated to conform with current period presentation.

International (1)

                                 Apr 3,                             Mar 28,                               %                                Apr 3,                              Mar 28,
                                                     2022                                                  2021                                                 Change                                                  2022                                                   2021
                                       -------------------------------  -------------------- -------------------------------  -------------------- ------------------------------  -------------------- ----------------------------------  -------------------- ------------------------------
Quarter Ended                                                                                                          As a % of International
                                                                                                                                                                                                                                           total net revenues
--------------------------------------                                                                                                                                                                  ------------------------------------------------------------------------------------
Net revenues:                                                                                             
                                                          $     1,340.4                      $     1,384.7         (3.2 ) %                              78.7 %                            84.6 %
  Company-operated stores
                                               342.5           226.9         50.9               20.1           13.9  
  Licensed stores
                                                19.5            25.4        (23.2 )                                 1.1            1.6  
  Other
                                       -------------------- -----------                      -------------------- -----------                                                                           -------------- --------------------                      ---------- --------------------
Total net revenues                           1,702.4         1,637.0          4.0              100.0          100.0  
Product and distribution costs                 580.5           528.0          9.9               34.1           32.3  
Store operating expenses                       689.3           620.2         11.1               40.5           37.9  
Other operating expenses                        39.5            32.0         23.4                2.3            2.0  
Depreciation and amortization expenses         133.4           143.4         (7.0 )                                 7.8            8.8  
General and administrative expenses             79.6            82.1         (3.0 )                                 4.7            5.0  
                                       -------------------- -----------                      -------------------- -----------                                                                           -------------- --------------------                      ---------- --------------------
                                             1,522.3         1,405.7          8.3               89.4           85.9  
   Total operating expenses
Income from equity investees                     0.6            26.8        (97.8 )                      --            1.6  
                                       -------------------- -----------                      -------------------- -----------                                                                           -------------- --------------------                      ---------- --------------------
                                                          $       180.7                      $       258.1        (30.0 ) %                              10.6 %                            15.8 %
   Operating income
                                       ==================== ===========                      ==================== ===========                                                                           ============== ====================                      ========== ====================
Supplemental Ratio:                                                                                       
Store operating expenses as a % of company-operated store revenues                                                                                       51.4 %                            44.8 %
                                                                                       
Two Quarters Ended                                                                                        
--------------------------------------
Net revenues:                                                                                             
                                                          $     2,848.7                      $     2,826.4          0.8 %                                79.6 %                            85.2 %
  Company-operated stores
                                               677.4           452.2         49.8               18.9           13.6  
  Licensed stores
                                                52.3            40.4         29.5                1.5            1.2  
  Other
                                       -------------------- -----------                      -------------------- -----------                                                                           -------------- --------------------                      ---------- --------------------
Total net revenues                           3,578.4         3,319.0          7.8              100.0          100.0  
Product and distribution costs               1,196.4         1,064.2         12.4               33.4           32.1  
Store operating expenses                     1,386.9         1,248.6         11.1               38.8           37.6  
Other operating expenses                        78.7            67.6         16.4                2.2            2.0  
Depreciation and amortization expenses         266.5           283.4         (6.0 )                                 7.4            8.5  
General and administrative expenses            170.9           167.2          2.2                4.8            5.0  
                                       -------------------- -----------                      -------------------- -----------                                                                           -------------- --------------------                      ---------- --------------------
                                             3,099.4         2,831.0          9.5               86.6           85.3  
   Total operating expenses
Income from equity investees                     1.3            53.0        (97.5 )                      --            1.6  
                                       -------------------- -----------                      -------------------- -----------                                                                           -------------- --------------------                      ---------- --------------------
                                                          $       480.3                      $       541.0        (11.2 ) %                              13.4 %                            16.3 %
   Operating income
                                       ==================== ===========                      ==================== ===========                                                                           ============== ====================                      ========== ====================
Supplemental Ratio:                                                                                       
(1) International licensed store revenues, total net revenues, product and distribution costs, other operating expenses, general and administrative expenses, total operating expenses and operating income for the quarter ended March 28, 2021, have been restated to conform with current period presentation International licensed store revenues, total net revenues, product and distribution costs, other operating expenses, general and administrative expenses, total operating expenses and operating income for the quarter ended March 28, 2021, have been restated to conform with current period presentation

Channel Development

                                   Apr 3,                              Mar 28,                              %                                Apr 3,                              Mar 28,
                                                       2022                                                   2021                                                Change                                                  2022                                                   2021
                                       ----------------------------------  -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ----------------------------------  -------------------- ------------------------------
Quarter Ended                                                                                                                   As a % of
                                                                                                                                                                                                                                             Channel Development
                                                                                                                                                                                                                                             total net revenues
--------------------------------------                                                                                                                                                                    ------------------------------------------------------------------------------------
Net revenues                                              $          463.1                      $      369.9         25.2 %                                          
Product and distribution costs                    300.5          231.9         29.6               64.9 %                            62.7 %
Other operating expenses                           10.7           13.1        (18.3 )                                 2.3            3.5  
Depreciation and amortization expenses   --            0.3       (100.0 )                      --            0.1  
General and administrative expenses                 2.5            2.3          8.7                0.5            0.6  
                                       -------------------- --------------                      -------------------- ----------                                                                           -------------- --------------------                      ---------- --------------------
                                                  313.7          247.6         26.7               67.7           66.9  
  Total operating expenses
Income from equity investees                       48.5           50.3         (3.6 )                                10.5           13.6  
                                       -------------------- --------------                      -------------------- ----------                                                                           -------------- --------------------                      ---------- --------------------
                                                          $          197.9                      $      172.6         14.7 %                                42.7 %                            46.7 %
  Operating income
                                       ==================== ==============                      ==================== ==========                                                                           ============== ====================                      ========== ====================
                                                                                         
Two Quarters Ended                                                                                          
--------------------------------------
Net revenues                                              $          880.1                      $      741.2         18.7 %                                          
Product and distribution costs                    559.3          465.4         20.2               63.5 %                            62.8 %
Other operating expenses                           22.0           24.1         (8.7 )                                 2.5            3.3  
Depreciation and amortization expenses   --            0.6       (100.0 )                      --            0.1  
General and administrative expenses                 5.8            4.5         28.9                0.7            0.6  
                                       -------------------- --------------                      -------------------- ----------                                                                           -------------- --------------------                      ---------- --------------------
                                                  587.1          494.6         18.7               66.7           66.7  
  Total operating expenses
Income from equity investees                       88.1          106.7        (17.4 )                                10.0           14.4  
                                       -------------------- --------------                      -------------------- ----------                                                                           -------------- --------------------                      ---------- --------------------

Corporate and Other (1)

                                         Apr 3,                                             Mar 28,                                       %
                                                             2022                                                                  2021                                                         Change
                                                                                                                                                                                   ------------------------------
 
Quarter Ended                                                                                         
--------------------------------------
Net revenues                                              $   24.4                        $   22.6            8.0 %
Product and distribution costs             20.8         19.4            7.2  
Other operating expenses                    4.4          3.4           29.4  
Depreciation and amortization expenses     32.3         37.0          (12.7 )
General and administrative expenses       328.1        302.3            8.5  
                                       -------------------- ------ --------------------                      -------------------- ------ --------------------
                                          385.6        362.1            6.5  
   Total operating expenses
                                       -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                          $ (361.2 )                                         $ (339.5 )                             6.4 %
   Operating loss
                                       ==================== ====== ====================                      ==================== ====== ====================
                                                                                     
Two Quarters Ended                                                                                      
--------------------------------------
Net revenues                                              $   49.5                        $   43.1           14.8 %
Product and distribution costs             43.6         38.4           13.5  
Other operating expenses                    7.4          7.1            4.2  
Depreciation and amortization expenses     65.2         73.7          (11.5 )
General and administrative expenses       682.6        616.3           10.8  
                                       -------------------- ------ --------------------                      -------------------- ------ --------------------
                                          798.8        735.5            8.6  
   Total operating expenses
                                       -------------------- ------ --------------------                      -------------------- ------ --------------------
(1) Corporate and other general and administrative expenses, total operating expenses and operating loss for the quarter ended March 28, 2021, have been restated to conform with current period presentation. Corporate and other general and administrative expenses, total operating expenses and operating loss for the quarter ended March 28, 2021, have been restated to conform with current period presentation.

Corporate and Other primarily consists of our unallocated corporate operating expenses and Evolution Fresh.

                                                                                                                           STARBUCKS CORPORATION
                                                                                                                        CONSOLIDATED BALANCE SHEETS
                                                                                                              (unaudited, in millions, except per share data)
                                                                                                                                                   Apr 3,                                               Oct 3,
                                                                                                                                                                       2022                                                                    2021
                                                                                                                                                ------------------------------------------------                        ------------------------------------------------
                                                                     ASSETS                                                                                                        
Current assets:                                                                                                                                                                    
                                                                                                                                                                   $  3,913.4                        $  6,455.7  
    Cash and cash equivalents
                                                                                                                                                      82.1          162.2  
    Short-term investments
                                                                                                                                                   1,001.9          940.0  
    Accounts receivable, net
                                                                                                                                                   1,920.0        1,603.9  
    Inventories
                                                                                                                                                     623.7          594.6  
    Prepaid expenses and other current assets
                                                                                                                                                -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                   7,541.1        9,756.4  
        Total current assets
Long-term investments                                                                                                                                285.6          281.7  
Equity investments                                                                                                                                   270.8          268.5  
Property, plant and equipment, net                                                                                                                 6,460.8        6,369.5  
Operating lease, right-of-use asset                                                                                                                8,170.2        8,236.0  
Deferred income taxes, net                                                                                                                         1,809.4        1,874.8  
Other long-term assets                                                                                                                               582.8          578.5  
Other intangible assets                                                                                                                              254.7          349.9  
Goodwill                                                                                                                                           3,646.1        3,677.3  
                                                                                                                                                -------------------- -------- --------------------                      -------------------- -------- --------------------
TOTAL ASSETS                                                                                                                                                       $ 29,021.5                        $ 31,392.6  
                                                                                                                                                ==================== ======== ====================                      ==================== ======== ====================
                                                 LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)                                                                                    
Current liabilities:                                                                                                                                                               
                                                                                                                                                                   $  1,329.5                        $  1,211.6  
    Accounts payable
                                                                                                                                                   2,092.4        2,321.2  
    Accrued liabilities
                                                                                                                                                     665.9          772.3  
    Accrued payroll and benefits
                                                                                                                                                   1,236.3        1,251.3  
    Current portion of operating lease liability
                                                                                                                                                   1,781.6        1,596.1  
    Stored value card liability and current portion of deferred revenue
                                                                                                                                                   1,998.6          998.9  
    Current portion of long-term debt
                                                                                                                                                -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                   9,104.3        8,151.4  
        Total current liabilities
Long-term debt                                                                                                                                    14,014.4       13,616.9  
Operating lease liability                                                                                                                          7,668.5        7,738.0  
Deferred revenue                                                                                                                                   6,381.9        6,463.0  
Other long-term liabilities                                                                                                                          613.6          737.8  
                                                                                                                                                -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                  37,782.7       36,707.1  
        Total liabilities
Shareholders' deficit:                                                                                                                                                             
                                                                                                                                                       1.1            1.2  
    Common stock ($0.001 par value) -- authorized, 2,400.0 shares; issued and outstanding, 1,146.9 and 1,180.0 shares, respectively
                                                                                                                                                      41.1          846.1  
    Additional paid-in capital
                                                                                                                                                  (9,070.5 )                        (6,315.7 )
    Retained deficit
                                                                                                                                                     260.3          147.2  
    Accumulated other comprehensive income
                                                                                                                                                -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                  (8,768.0 )                        (5,321.2 )
        Total shareholders' deficit
Noncontrolling interests                                                                                                                               6.8            6.7  
                                                                                                                                                -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                  (8,761.2 )                        (5,314.5 )
        Total deficit
                                                                                                                                                -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                   STARBUCKS CORPORATION
                                                                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                (unaudited and in millions)
                                                                                                                           Two Quarters Ended
                                                                                          Apr 3,                                                     Mar 28,
                                                                                                              2022                                                                          2021
                                                                                    ------------------------------------------------------                        ------------------------------------------------------
OPERATING ACTIVITIES:                                                                                                        
Net earnings including noncontrolling interests                                                        $        1,491.1                        $        1,281.6  
Adjustments to reconcile net earnings to net cash provided by operating activities:                                          
                                                                                               777.7                772.9  
    Depreciation and amortization
                                                                                                28.4                (25.2 )
    Deferred income taxes, net
                                                                                              (118.7 )                                (131.3 )
    Income earned from equity method investees
                                                                                               100.8                130.2  
    Distributions received from equity method investees
                                                                                               149.2                175.3  
    Stock-based compensation
                                                                                               670.7                617.9  
    Non-cash lease costs
                                                                                                77.3                175.4  
    Loss on retirement and impairment of assets
                                                                                               (17.9 )                                 (15.4 )
    Other
                                                                                                                             
    Cash provided by/(used in) changes in operating assets and liabilities:
                                                                                               (62.1 )                                  12.8  
          Accounts receivable
                                                                                              (324.9 )                                  51.3  
          Inventories
                                                                                              (120.7 )                                 139.7  
          Prepaid expenses and other current assets
                                                                                               133.0                 21.3  
          Accounts payable
                                                                                               110.2                 89.8  
          Deferred revenue
                                                                                              (766.3 )                                (676.3 )
          Operating lease liability
                                                                                               (95.0 )                                  99.5  
          Other operating assets and liabilities
                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net cash provided by operating activities                                                    2,032.8              2,719.5  
INVESTING ACTIVITIES:                                                                                                        
Purchases of investments                                                                       (67.5 )                                (321.7 )
Sales of investments                                                                            72.6                121.7  
Maturities and calls of investments                                                             55.7                289.0  
Additions to property, plant and equipment                                                    (871.9 )                                (647.9 )
Other                                                                                          (69.8 )                                 (20.1 )
                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net cash used in investing activities                                                         (880.9 )                                (579.0 )
FINANCING ACTIVITIES:                                                                                                        
Net proceeds/(payments) from issuance of commercial paper                             --               (296.5 )
Net proceeds from issuance of short-term debt                                                   17.4                203.3  
Repayments of short-term debt                                                                  (12.6 )                                (320.5 )
Proceeds from issuance of long-term debt                                                     1,498.1       --  
Repayments of long-term debt                                                          --             (1,250.0 )
Proceeds from issuance of common stock                                                          56.3                134.4  
Cash dividends paid                                                                         (1,139.2 )                              (1,058.0 )
Repurchase of common stock                                                                  (3,997.5 )                        --  
Minimum tax withholdings on share-based awards                                                (122.1 )                                 (90.1 )
Other                                                                                           (9.2 )                        --  
                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net cash used in financing activities                                                       (3,708.8 )                              (2,677.4 )
Effect of exchange rate changes on cash and cash equivalents                                    14.6                 66.7  
                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net increase/(decrease) in cash and cash equivalents                                        (2,542.3 )                                (470.2 )
CASH AND CASH EQUIVALENTS:                                                                                                   
Beginning of period                                                                          6,455.7              4,350.9  
                                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------
End of period                                                                                          $        3,913.4                        $        3,880.7  
                                                                                    ==================== ============== ====================                      ==================== ============== ====================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                                                            
Cash paid during the period for:                                                                                             
Interest, net of capitalized interest                                                                  $          236.0                        $          250.8  

Supplemental Information

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

U.S. Supplemental Data

                                   Quarter Ended                       Change (%)
($ in millions)                       Apr 3, 2022  Mar 28, 2021  
Revenues                               $5,060.9      $4,302.9              18%
Change in Comparable Store Sales (1)      12%           9%         
                                          5%           (10)%       
  Change in Transactions
                                          7%            21%        
  Change in Ticket
(1) Includes only Starbucks(R) company-operated stores open 13 months or longer. Comparable store sales exclude Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed. Includes only Starbucks(R) company-operated stores open 13 months or longer. Comparable store sales exclude Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed.

China Supplemental Data

                                   Quarter Ended                       Change (%)
($ in millions)                       Apr 3, 2022  Mar 28, 2021  
Revenues                                $743.7        $860.6              (14)%
Change in Comparable Store Sales (1)     (23)%          91%        
                                         (20)%          93%        
  Change in Transactions
                                         (4)%          (1)%        
  Change in Ticket
(1) Includes only Starbucks(R) company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates, stores identified for permanent closure and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed. Comparable store sales for the second quarter of fiscal 2022 included a 4% adverse impact from lapping the prior-year value-added tax benefit. Includes only Starbucks(R) company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates, stores identified for permanent closure and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed. Comparable store sales for the second quarter of fiscal 2022 included a 4% adverse impact from lapping the prior-year value-added tax benefit. Includes only Starbucks(R) company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates, stores identified for permanent closure and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed. Comparable store sales for the second quarter of fiscal 2022 included a 4% adverse impact from lapping the prior-year value-added tax benefit.

Store Data

                                                                     Net stores opened/(closed) and transferred during the period                                                                   
                            --------------------------------------------------------------------------------------------------------------------------------------------------------------------------                               -------------------- -------------------- --------------------
                                             Quarter Ended                                                                  Two Quarters Ended                                                     Stores open as of
                            --------------------------------------------------------------------------------                          ----------------------------------------------------------------------                         ------------------------------------------------------------
                      Apr 3,                            Mar 28,                     Apr 3,                       Mar 28,                     Apr 3,                 Mar 28,
                                          2022                                                 2021                                           2022                                            2021                                           2022                                      2021
                            ------------------------------                       ------------------------------                       --------------------                      ------------------------------                       --------------------                      --------------------
North America:                                                                    
                                    54           (209 )                                        93         (289 )                                     9,954                  9,820
  Company-operated stores
                                   (16 )                              20                        7           50                    6,972                  6,881
  Licensed stores
                            ---------- --------------------                      ---------- --------------------                      --------------------                      ---------- --------------------                      --------------------                      --------------------
                                    38           (189 )                                       100         (239 )                                    16,926                 16,701
    Total North America (1)
                            ---------- --------------------                      ---------- --------------------                      --------------------                      ---------- --------------------                      --------------------                      --------------------
International:                                                                    
                                   102            123                      315          308                    7,587                  6,836
  Company-operated stores
                                   173             71                      382          214                   10,117                  9,406
  Licensed stores
                            ---------- --------------------                      ---------- --------------------                      --------------------                      ---------- --------------------                      --------------------                      --------------------
                                   275            194                      697          522                   17,704                 16,242
    Total International (1)
                            ---------- --------------------                      ---------- --------------------                      --------------------                      ---------- --------------------                      --------------------                      --------------------
(1) North America and International licensed and total stores as of March 28, 2021, have been recast as a result of our fiscal 2021 operating segment reporting structure realignment. North America and International licensed and total stores as of March 28, 2021, have been recast as a result of our fiscal 2021 operating segment reporting structure realignment.

Non-GAAP Disclosure

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 Exclusion                                                                                                                                                   Rationale
---------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sale of certain joint venture operations Management excludes the gain and subsequent adjustments, if any, related to the sale of joint venture operations as this activity was specific to the sale and for reasons discussed above.
Restructuring and impairment costs       Management excludes restructuring and impairment costs relating to the write-down of certain company-operated store and corporate assets. Management excludes these items for reasons discussed above. These expenses are anticipated to be completed within a finite period of time.

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.

Certain non-GAAP measures included in this report were not reconciled to the comparable GAAP financial measures because the GAAP measures are not accessible on a forward-looking basis. The company is unable to reconcile these forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts because the company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. Such items may include acquisitions, divestitures, restructuring and other items. The unavailable information could have a significant impact on the company's GAAP financial results.

                                                                                                            STARBUCKS CORPORATION
                                                                                        RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
                                                                                               (unaudited, in millions except per share data)
                                                                                                        Quarter Ended (1)                                                          
                                                                    ------------------------------------------------------------------------------------------------------------------------
Consolidated                                                                             Apr 3,                                                 Mar 28,                                  Change
                                                                                          2022                                                                    2021 (2)
Operating income, as reported (GAAP)                                                   $  948.9                        $          987.6           (3.9 )%
Restructuring and impairment costs (3)                                   4.4                 23.0      
Integration costs (4)                                                   43.1                 54.3      
                                                                    -------------------- ------ --------------------                      -------------------- -------------- --------------------
Non-GAAP operating income                                                              $  996.4                        $        1,064.9           (6.4 )%
                                                                    ==================== ====== ====================                      ==================== ============== ====================
                                                                                                                          
Operating margin, as reported (GAAP)                                    12.4 %                                  14.8 %                            (240) bps
Restructuring and impairment costs (3)                                   0.1                  0.3      
Integration costs (4)                                                    0.6                  0.8      
                                                                    -------------------- ------ --------------------                      -------------------- -------------- --------------------
Non-GAAP operating margin                                               13.0 %                                  16.0 %                            (300) bps
                                                                    ==================== ====== ====================                      ==================== ============== ====================
                                                                                                                          
Diluted net earnings per share, as reported (GAAP)                                     $   0.58                        $           0.56            3.6 %
Restructuring and impairment costs (3)                                  0.00                 0.02      
Integration costs (4)                                                   0.04                 0.04      
Gain resulting from divestiture of certain joint venture operations    (0.01 )                        --      
Correction of prior year estimated tax expense (5)                     (0.02 )                        --      
Income tax effect on Non-GAAP adjustments (6)                          (0.01 )                                 (0.01 )                       
                                                                    -------------------- ------ --------------------                      -------------------- -------------- --------------------
(1) Certain numbers may not foot due to rounding convention.                                                                                                                                                                                                                                     Certain numbers may not foot due to rounding convention.
(2) In the first quarter of fiscal 2022, the company changed its treatment of removing certain integration costs related to the acquisitions of Starbucks Japan and East China for its non-GAAP financial measures. Integration costs, primarily related to information technology investments and compensation-related programs, are deemed to be representative of ongoing operations. These integration costs will remain in our non-GAAP measures, and non-GAAP measures for the quarter ended March 28, 2021 have been recast to reflect this change. In the first quarter of fiscal 2022, the company changed its treatment of removing certain integration costs related to the acquisitions of Starbucks Japan and East China for its non-GAAP financial measures. Integration costs, primarily related to information technology investments and compensation-related programs, are deemed to be representative of ongoing operations. These integration costs will remain in our non-GAAP measures, and non-GAAP measures for the quarter ended March 28, 2021 have been recast to reflect this change.
(3) Represents costs associated with our restructuring efforts.                                                                                                                                                                                                                                     Represents costs associated with our restructuring efforts.
(4) Includes amortization expense of acquired intangible assets associated with the acquisition of East China. Fiscal 2021 also includes amortization expense of acquired intangible assets associated with the acquisition of Starbucks Japan.                                                                                                                                                                                                                                     Includes amortization expense of acquired intangible assets associated with the acquisition of East China. Fiscal 2021 also includes amortization expense of acquired intangible assets associated with the acquisition of Starbucks Japan.
(5) Represents a beneficial return-to-provision adjustment related to the prior year divestiture of certain joint venture operations that also received non-GAAP treatment.                                                                                                                                                                                                                                     Represents a beneficial return-to-provision adjustment related to the prior year divestiture of certain joint venture operations that also received non-GAAP treatment.
                                                                                                                                       Q2 QTD FY22 NON-GAAP DISCLOSURE DETAILS
                                                                                                                                        (in millions and before income taxes)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Q2 QTD FY22                                                    North America                                 International                                 Channel Development                                           Corporate and Other                                        Consolidated
                                         ------------------------------------------------------   --------------------------------   ------------------------------------------------------------  ----------------------------------------------------------    ------------------------------------------------
Statement of Earnings Line Item                     Restructuring and Impairment Costs                     Integration Costs          Nestle Transaction and Integration-Related Costs     Integration Costs     Restructuring and Impairment Costs              Total Non-GAAP Adjustment
                                         ------------------------------------------------------   --------------------------------   ------------------------------------------------------------  ------------------------  ----------------------------------  ------------------------------------------------
                                                              --            43.1                                                  --            --                      --                          43.1  
  Depreciation and amortization expenses   $                                                        $                                  $                                                             $                         $                                   $
                                                      4.4                                                                                             4.4  
  Restructuring and impairments
                                         -------------------- -------------- -------------------- --------------------------------   ------------------------------------------------------------  ------------------------  ----------------------------------  -------------------- -------- --------------------
Total impact to operating income                                        (4.4 )                            (43.1 )                                                                   --            --                      --                         (47.5 )
                                           $                                                        $                                  $                                                             $                         $                                   $
---------------------------------------- ==================== ============== ==================== ====== ====== ==================== ============================== ============================== ========== ============== ================= ================= -------------------- -------- --------------------
                                                                                                                                                
---------------------------------------- ------------------------------------------------------   --------------------------------   ------------------------------------------------------------  ------------------------  ----------------------------------  ------------------------------------------------
                                                                                                                                                                   
  Non-Operating gain

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503005201/en/

SOURCE: Starbucks Corporation

Starbucks Contact, Investor Relations: 
Tiffany Willis
investorrelations@starbucks.com

Starbucks Contact, Media: 
Maggie Jantzen
press@starbucks.com 
206-318-7100
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