What was Starbucks' revenue and net earnings performance for the quarter ended April 3, 2005?

For the 13 weeks ended April 3, 2005, Starbucks reported total net revenues of $1.5 billion, a 22% increase from the prior year. Net earnings were $100.5 million, a 27% increase compared to the same period in the previous fiscal year.

How did store growth contribute to Starbucks' performance?

Store growth was a significant driver, with 669 new company-operated retail stores opened in the last 12 months globally, contributing to a 22% increase in company-operated retail revenues. Additionally, 758 new licensed retail stores were opened globally in the past 12 months, boosting specialty revenues.

What is Starbucks' outlook for future growth?

Starbucks management reiterated its long-term growth targets, aiming for annual revenue growth of approximately 20% and annual earnings per share growth of 20-25% for the next three to five years. This is expected to be achieved through continued new store development globally and initiatives to increase sales at existing stores.

Were there any significant accounting changes or restatements impacting this report?

Yes, the company restated certain prior period financial statements due to accounting corrections related to operating lease accounting for tenant improvement allowances and rent holidays. This restatement impacted prior periods but did not affect the reported net earnings for the current periods. Additionally, there was a reclassification of auction rate securities from cash equivalents to short-term investments.

SBUX 10-Q Quarterly Report Q3 FY2005 — Revenue, Net Income, EPS

Summary

Starbucks Corporation (SBUX) reported strong financial performance for the quarter ended April 3, 2005. The company saw a significant 22% increase in total net revenues to $1.5 billion, driven by robust growth in both company-operated and licensed retail stores, alongside its specialty operations. Net earnings also saw a substantial increase of 27% year-over-year, reaching $100.5 million. This growth reflects the company's successful expansion strategy, with a notable increase in both company-operated and licensed store openings, and positive comparable store sales growth of 7% in the U.S. and 5% internationally for the quarter. Profitability improved with operating margin increasing to 10.3% from 10.0% in the prior year's comparable period, demonstrating the company's ability to leverage its infrastructure and manage costs effectively despite rising expenses in areas like dairy and payroll. The company reiterated its long-term growth targets, aiming for continued revenue and earnings per share growth through a combination of new store development and efforts to increase sales at existing locations. Starbucks' strong performance underscores its continued market leadership and strategic execution in a competitive global environment.

Key Highlights

1Total net revenues increased by 22% to $1.5 billion for the 13 weeks ended April 3, 2005, compared to the prior year.
2Net earnings rose by 27% to $100.5 million for the 13 weeks ended April 3, 2005, compared to the prior year.
3Company-operated retail revenues grew by 22% driven by new store openings and a 7% increase in comparable store sales in the U.S.
4International net revenues increased by 31% to $242 million, with company-operated retail revenues up 31% driven by new store openings and a 5% comparable store sales growth.
5Operating margin improved to 10.3% from 10.0% in the prior year's comparable period.
6The company opened a net of 312 stores globally during the 13-week period.
7Starbucks continues to invest in growth, with capital expenditures planned between $600 million and $650 million for fiscal 2005, primarily for new store openings and renovations.

STARBUCKS CORP Quarterly Report for Q3 Ended Apr 3, 2005

Summary

Key Highlights

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