10-Q/APeriod: Q1 FY2024

STARBUCKS CORP Quarterly Report (Amendment) for Q1 Ended Dec 31, 2023

Filed February 16, 2024For Securities:SBUX

Summary

This 10-Q filing from Starbucks Corp. (SBUX) for the period ending December 30, 2023, primarily focuses on insider trading arrangements. Notably, the Chief Financial Officer, Rachel Ruggeri, has adopted a Rule 10b5-1 trading arrangement to sell up to $900,000 worth of shares, plus additional shares from vesting Restricted Stock Units (RSUs), through various orders planned between March 2024 and August 2024, with a limit price of $80 per share for some transactions. The arrangement includes a termination date of December 3, 2024, and provisions for automatic expiration under certain conditions. Similarly, Michael Conway, Group President of International and Channel Development, has also implemented a Rule 10b5-1 trading arrangement to sell up to 13,000 shares through orders scheduled from February 2024 to August 2024, also with a limit price of $80 per share. Both executives' plans are intended to comply with Rule 10b5-1(c) requirements, providing a framework for potential stock sales in the future. Investors should note that these are planned sales and do not necessarily reflect a negative outlook on the company's performance, but rather a personal financial planning strategy for executives.

Financial Highlights

53 data points
Beta

Revenue

$9.43B

Net Income

$1.02B

10.9% Net Margin

EPS (Diluted)

$0.90

Total Assets

$29.18B

Cash & Equivalents

$3.00B

Free Cash Flow

$1.79B

Financial Statements
Beta
Revenue$9.43B
Operating Expenses$8.00B
Operating Income$1.49B
Interest Expense$140.10M
Net Income$1.02B
EPS (Basic)$0.90
EPS (Diluted)$0.90
Shares Outstanding (Basic)1.14B
Shares Outstanding (Diluted)1.14B

Key Highlights

  • 1CFO Rachel Ruggeri adopted a Rule 10b5-1 trading arrangement to sell up to $900,000 worth of shares, plus additional shares from RSU vesting.
  • 2The CFO's sales are planned through multiple orders between March 2024 and August 2024, with some subject to an $80 per share limit price.
  • 3Michael Conway, Group President International, also adopted a Rule 10b5-1 trading arrangement to sell up to 13,000 shares.
  • 4Mr. Conway's sales are scheduled through orders from February 2024 to August 2024, with an $80 per share limit price.
  • 5All described trading arrangements are intended to comply with the safe harbor provisions of Rule 10b5-1(c).
  • 6The CFO's trading plan has a termination date of December 3, 2024, while Mr. Conway's ends October 31, 2024.
  • 7These filings concern insider trading arrangements and do not provide specific financial performance metrics for the quarter.

Frequently Asked Questions

A Rule 10b5-1 trading arrangement is a pre-arranged plan that allows company insiders (like executives and directors) to buy or sell company stock at a predetermined time and price, or based on a predetermined formula, in advance. This plan helps them avoid accusations of insider trading by providing an affirmative defense under SEC Rule 10b5-1(c), as long as certain conditions, including a 'cooling-off' period, are met.

Not necessarily. Rule 10b5-1 plans are often used by executives for personal financial planning, such as diversifying their assets or meeting financial obligations. While these plans allow for future stock sales, they are established when the insider does not possess material non-public information about the company. The sales are pre-planned and do not inherently signal a belief that the stock will decline.

The $80 per share limit price means that the sales under these specific portions of the trading plans will only occur if the market price of Starbucks' stock reaches or exceeds $80 per share at the time of the planned transaction. If the stock price remains below $80, those specific sales might not be executed.

This specific filing (10-Q/A filed on February 15, 2024) is an amendment that primarily details insider trading arrangements. It does not contain the comprehensive financial statements and management's discussion and analysis that are typically found in a standard 10-Q filing. For detailed financial performance, investors should refer to the original 10-Q filing for the period ending December 30, 2023.