What were the primary drivers of the revenue growth in the third quarter?

Revenue growth was primarily driven by a 9% increase in comparable store sales, fueled by a 6% increase in the number of transactions and a 3% increase in the average transaction value. Specialty operations, including licensing and the Global Consumer Products Group (CPG) segment, also contributed positively, bolstered by product sales to licensees and the launch of Starbucks VIA® Ready Brew.

How has the company's profitability improved, and what is the outlook?

Profitability saw significant improvement due to a combination of factors including strong comparable store sales growth leading to increased sales leverage, operational efficiencies implemented in the supply chain and company-operated stores, and lower restructuring charges. The operating margin expanded considerably. For the full fiscal year 2010, Starbucks expects mid-single-digit revenue growth and mid-single-digit comparable store sales growth, with a significant improvement in consolidated operating margin compared to the prior year.

What is the company's financial position regarding liquidity and cash flow?

Starbucks demonstrated strong liquidity, with cash and cash equivalents increasing to $1,125.2 million. The company generated $1,375.4 million in net cash from operating activities for the 39 weeks ended June 27, 2010. They ended the period with no short-term debt and have a $1 billion unsecured credit facility, of which only $15 million was outstanding under letters of credit.

How is Starbucks returning capital to shareholders?

Starbucks has begun returning capital to shareholders through dividends and share repurchases. The company declared its first quarterly cash dividend of $0.10 per share, later increased to $0.13 per share. Additionally, during the third quarter, Starbucks repurchased approximately 6.7 million shares of common stock under its share repurchase program.

SBUX 10-Q Quarterly Report Q3 FY2010 — Revenue, Net Income, EPS

Summary

Starbucks Corporation's (SBUX) Form 10-Q for the period ending June 27, 2010, reveals a strong recovery and growth trajectory following a period of restructuring. The company demonstrated significant year-over-year improvements in revenue and profitability, driven by robust comparable store sales growth in both the U.S. and international markets. This growth was supported by operational efficiencies, cost management, and strategic initiatives like the expansion of Starbucks VIA® Ready Brew. The financial results indicate a return to a healthier core business and positive momentum for future expansion. Key financial indicators show substantial growth in operating income and net earnings attributable to Starbucks, alongside an expansion in operating margins. The company also increased its cash position and initiated shareholder returns through a dividend and share repurchases, signaling financial strength and a commitment to returning value to investors. Management expressed confidence in continued growth, projecting mid-single-digit revenue and comparable store sales growth for the full fiscal year.

Financial Highlights

54 data points

Beta

Revenue

$2.61B

0.6% Gross Margin

Net Income

$207.90M

0.1% Net Margin

EPS (Diluted)

$0.14

Total Assets

$6.21B

Cash & Equivalents

$1.13B

Free Cash Flow

$321.00M

Financial Statements

Beta

Revenue	$2.61B
Cost of Revenue	$1.08B
Gross Profit	$1.54B
Operating Expenses	$2.32B
Operating Income	$327.70M
Interest Expense	$7.90M
Net Income	$207.90M
EPS (Basic)	$0.14
EPS (Diluted)	$0.14
Shares Outstanding (Basic)	1.49B
Shares Outstanding (Diluted)	1.53B

Key Highlights

1Net revenues increased by 8.7% to $2,612.0 million for the 13 weeks ended June 27, 2010, compared to $2,403.9 million in the prior year period.
2Diluted Earnings Per Share (EPS) increased to $0.27 for the 13 weeks ended June 27, 2010, up from $0.20 in the prior year period.
3Operating income significantly improved to $327.7 million for the 13 weeks ended June 27, 2010, a substantial increase from $204.0 million in the prior year.
4Comparable store sales grew by 9% in the third quarter and 7% year-to-date, indicating a healthy recovery and increased customer traffic.
5The company ended the period with a strong cash and cash equivalents balance of $1,125.2 million, an increase from $599.8 million at the prior year's fiscal year-end.
6Starbucks declared and paid its first-ever quarterly cash dividend of $0.10 per share in the third quarter and announced an increase to $0.13 per share for the next quarter.
7Restructuring charges decreased significantly, reflecting the near completion of the company's store portfolio rationalization efforts.

STARBUCKS CORP Quarterly Report for Q3 Ended Jun 27, 2010

Summary

Financial Highlights

Key Highlights

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